Nowadays, many B2B Tech and SaaS companies face challenges in creating demand for their products and services, and demand generation can help with this.
This umbrella term doesn't cover just one tactic. Instead, it's used for multiple approaches that create interest in your service or product.
The demand generation team works in a cross-functional capacity to develop numerous methods to connect the right message to the right audience. Demand generation is a mix of different activities such as:
- Inbound marketing
- Content marketing
- Email marketing
- Marketing automation
- Social media marketing
- Pay-per-click advertising (PPC)
- Account-based marketing
As long as the strategies aim to build demand by creating awareness for your products, acquiring new customers, and re-engaging existing ones, it's demand generation.
For effective demand generation, the sales and marketing functions of your company need to be transparent and aligned, and both teams should be able to identify any gaps in the process.
What Are ToFu, MoFu, and BoFu?
Demand generation is a form of marketing that creates interest and awareness throughout the entire buyer's journey and customer life cycle. Demand gen strategies account for every touchpoint in the buyer's journey, from building awareness to customer retention.
ToFu, MoFu, BoFu is shorthand for the buyer's journey. ToFu means top-of-the-funnel, MoFu is middle-of-the-funnel, and BoFu is bottom-of-the-funnel.
But what do ToFu, MoFu, and BoFu have to do with demand generation? Everything. Each stage of the funnel provides potential customers with the information they need to move forward.
In the ToFu stage, businesses typically engage in demand generation activities that create awareness and interest in your product. In this phase, you should create content that will educate your prospective customers on what you're offering.
The MoFu stage is about engaging and converting leads. As potential customers move down the funnel and you know more about them, you should target them with more personalized content to nurture their interest.
BoFu is the part of the funnel MQLs and SQLs are converted into paying customers. The content used at this part of the funnel needs to demonstrate the value proposition of your product.
Beyond the Funnel
If you want to make the most of brand trust, focus on creating demand generation even after the customer has made a purchase. Don't wash your hands of customers and move on to the next batch of leads. Instead, think beyond the funnel and create brand advocates out of your customers.
B2C vs. B2B Demand Generation
Demand generation for B2B companies takes longer because buying decisions are usually made by committees. You need to be ready to invest more time in creating a relationship with your potential customer and provide more information. Decisions also underlie various approvals at different levels of the business.
On the other hand, when it comes to demand generation for B2C companies, the number of decision-makers is lower since you will be addressing one person, or perhaps two at most (family or couple). The decision-making process is also shorter because customers make their purchasing decisions at the moment.
The global marketplace is constantly expanding, and businesses are having difficulties finding ways to make themselves stand out from their competitors. For this reason, demand generation is more valuable than ever before.
Even though, in theory, it might seem like demand generation is easy, in practice, it's not a piece of cake. It will take you some time to figure out what works best for your business, but once you're there, you will have created an inviting brand environment that your audience can step into.
Want to learn more about demand generation? Go to our blog and find some insightful tips to help your business grow!