The best way for a mature business to increase the sales of its products or services is to generate demand, not just leads. In the past, sales tactics would be used to generate numerous warm leads that demonstrate some level of interest, and then have the sales team follow up on them and try to convert as many as possible. But we now have the ability to sort through prospects and leads to focus on the connecting with prospects earlier – which leads to better conversion rates.
Traditional sales tactics are focused on matching the company’s offerings to the prospect’s needs when they are already shopping for a solution. You don’t have to wait that long anymore. Now you can target prospects when they are just starting their search for a solution. In this way, they are able to have influence over the information they want – and ultimately purchase- before they even know how to solve their issue.
Demand generation is a more customer-centric approach. You meet the prospect where they are in the customer journey, and lead them the rest of the way through to conversion. This method takes planning and a solid strategy, but in the end it will result in higher quality leads and shorten your sales cycle. It will also increase the Lifetime Value of the Customer (LVC).
In spite of the fact that 73% of marketers say they are “focusing on lead quality over lead quantity,” many companies are having difficulty making the switch from a “numbers game” approach to a quality-centric model that communicates with, educates, and learns from prospective customers. Demand generation strategies represent a paradigm shift, and some marketers are finding it difficult to adjust to the new approach, but it is well worth the effort.
Effective demand generation is about moving your prospects through the sales funnel, not simply sending them promotional materials. The focus or the marketing program shifts to guiding the customer’s decision-making process and influencing their decision. We have tools that can help do that.
It’s a different mindset. You need to know what drives your prospects at each step in the buyer’s journey. This shift means it’s more difficult to create an effective marketing program, but taking the time to do so will enable you to find your customer earlier in the buying process, before they know you have the solution to their need. But in spite of the increased difficulty, focusing on demand generation is really good for increasing your sales volume and shortening the cycle.
