Demand Generation – marketing’s under-appreciated super power

Demand Generation is a strategic approach to your marketing activity, and research shows it really works. The 2023 Demand Generation Performance and Investment Insights compiled from data provided by Global 2000 companies found that in that one year, Demand Generation strategies increased revenue generation returns by 35% in that one year , alone.

What is demand generation?

Demand generation is the art of encouraging the right people to really want what you’re selling. Here’s an analogy for you – demand generation is sort of like a garden. Plant your seeds (understand your audience), water them regularly (create content they care about), make sure it gets sunlight (entice them with relevant products or value-add) and watch them grow into fully fledged customers.

It’s about nourishing, growing, and tending to your audience. Leading them through a journey that doesn’t just end with conversion – it creates a valued, loyal, long-term customer.

The Demand Gen Funnel

To help us navigate each stage of the journey, we imagine it like a funnel; the earlier stages require larger numbers, as we lead customers through to conversion. Marketers often refer to these stages as TOF (Top of Funnel), MOF (Middle of Funnel), and BOF (Bottom of Funnel). TOF is about awareness – reaching broad audiences and making introductions. MOF focuses on nurturing interest and engagement, while BOF is where decisions are made and conversions happen!

Reach is the stage where customers learn you exist and gain basic understanding of what you’re about. From a digital perspective, you might use tactics like tailoring content to them that meets their needs, pushing the value of your proposition or product. Other tactics might include working with influencers, digital PR, or here in the physical realm, exhibiting at conferences, or exhibitions. The point is, you’re doing all this to create a memorable link between you and the potential customer.

Act is the second stage. We want our customers to take action – maybe not purchase – but instead give their name and email to receive a discount, download content, register for a webinar, or demo for a service. We can now classify this customer as a Marketing Qualified Lead (MQL).

Then, it’s time to convert. You might want your team to qualify the lead (turning into a Sales Qualified Lead or SQL), where it can be referred on to be encouraged to complete a transaction.

The final phase has two different approaches, depending on the action taken. If the target audience made a purchase or converted, you can continue to engage. Just keep in touch to fuel that loyalty that will motivate these prospective customers to do business with you again in the future. But if not ready to convert, it’s time to nurture. Reinforce the messaging that’s most relevant, retarget through different channels, maybe use case studies to really drive home that value proposition. Then who knows… you might get another conversion in the not-so-distant future.

What you need in a Demand Gen Strategy

An effective Demand Gen Strategy will contain all of the following (very important) elements…

Audience insights

It’s impossible to nurture your various target audiences towards conversion without understanding them. Use data and research to find out what they care about, how they behave, what interests them. Why would they need or want your products? What pain points do you solve for them? By understanding all of the above you can do a better job of reaching them with content and tactics that will resonate with them.

Top tip – we like to create audience personas for different target audiences. By doing this, we can more effectively visualise them and tailor our efforts accordingly!

Content strategy

Content strategy is about creating the right stuff for each audience – not just more stuff. You need to know what your audience wants to read, watch, or click on, and serve it up in a way that’s helpful, interesting, and actually worth their time. Without a strategy, content becomes a chaotic to-do list. With one? You’re creating value that builds trust and moves people closer to choosing you.

Channel strategy

What use is your perfectly crafted, expertly tailored content, if it doesn’t reach the right people? And that’s where your channel strategy comes in. It helps you figure out where your audience actually spends time and how they like to engage.

Understand how each audience consumes content. You want to show up in the right places with the right message at the right time. No more throwing spaghetti at the wall — this is targeted, thoughtful marketing.

CRMS

A good CRM will make your life so, so much easier. It keeps track of who’s who, what they’ve interacted with, and where they are in the journey. A CRM system will help you to personalise your outreach, nurture leads properly and keep sales and marketing on the same page. It’s not just a database – it’s a powerhouse of insight that helps you make smarter decisions and automate time-consuming tasks.

Measuring success

Knowledge is power – it’s that old chestnut. And there is vital knowledge gained by looking at what went right (and sometimes wrong). Attribution helps you to see the full path, so you can understand the journey your audiences are taking and which of your marketing efforts are pulling their weight. We want real insights here, not vanity metrics. So be sure to set up all that you need to track behaviour from the outset. It will make your output more efficient and effective in the long run!

Tactics

Tactics. The tools that bring demand generation to life. Yes, your owned channels matter: your website is your bread and butter, your social media is where you show personality, and your newsletter? That’s your cosy corner for building trust. But there’s a whole toolbox beyond that. Here are a few examples…

Paid media isn’t just for quick wins and conversions. It’s also a powerful way to build brand awareness. It can get your name in front of the right people, consistently, so that you’ve already built that trust by the time your customers are ready to buy.

Then there’s employee advocacy and personal branding: let your team’s voices shine! People trust people more than logos, so get your teams, leaders, and even founders across channels providing insight and telling the story behind your brand.

Video content? Always. It’s the go to for engagement now. It might be snappy explainers, or long-form storytelling, whatever you’re doing make sure it’s a scroll-stopper that humanises your brand.

Fortune favours the bold – so don’t be afraid to leverage your network. Ask for collaborations with partners; webinars, co-branded content, or partner recommendations and shoutouts. A recommendation from a trusted source goes a long way, and if your partners are doing it to their audiences, even better for you!

Where’s it all going?

What does the future of demand generation look like? Well, it’s going to be a lot smarter, more human, and way more connected. As cookie-based tracking fades into the abyss, brands are shifting to first-party data (more on that in this article) meaning the real gold is in building trust and collecting insights with your audience, not about them.

Community-led growth is taking off too, where loyal fans and engaged users become your best marketers. Add AI into the mix, and suddenly content creation, testing, and personalisation can happen faster than ever. But it’s not just about speed; it’s about relevance. Hyper-personalisation means people expect content, offers, and experiences tailored to them, not just their job title.

“What is demand generation?” you asked. And we answered. If you’d like some help with a demand gen strategy for your business or want an informal chat with our team of experts – give us a bell!