Demand Generation Flashcards
Solidify our knowledge to maximize the productivity of demand generation activities
What is the best way to generate demand?
It really depends on what and how you sell. If you sell a product that is transactional in nature, such as a consumer product, then demand generation will be heavily drive by marketing. In this situation, companies invest in marketing campaigns that build brand awareness, motivates consumers to buy, and creates opportunities for sales to close. If the sale is more strategic or relationship-based, then sales must more proactively identify targeted prospects, and make efforts to build awareness, credibility and opportunity with buyers.
What is the different between inbound and outbound marketing?
With “inbound marketing”, companies focus on driving inbound demand generation activities such as SEO and PPC. This typically requires companies to actively create content that can be optimized for search engines. So, when a prospect types a relevant key work into Google, the selling company appears on Google’s search engine results page and stands a higher chance of being clicked on by prospect. With “outbound” marketing, companies focus on targeting prospects and pushing messaging and offers to the prospect. This involves email, cold calling, advertising and trade shows.
What are the advantages and disadvantages of inbound marketing?
In theory, inbound marketing can be more cost effective and customer friendly. The bulk of the investment is in development and optimization of content, and that content is only served up to customers when they want it. And, when they proactively seek out content (or the right content), chances are they are will be better qualified to buy. The disadvantage is that you put yourself at the mercy of Google and the buyer. Getting placement on Google takes time, expertise and a bit of luck. It is a very complex animal and it changes often. And, if buyers aren’t coming to you, then what are your sellers doing? There’s a chance they are sitting back waiting for marketing to drive opportunities.
How should sellers create a demand generation strategy?
Sellers need to align their strategy and activity with the behaviors and preferences of their prospects. It starts by defining your ideal prospect profile. I find this best done by looking at recent closed business and identifying any patterns or trends related to industry, role or circumstance, and the path of activities that led them to become an opportunity. Then, you need to find other prospects that fit your IPP. LinkedIn is a great resource to help you with this task. I would then start by linking to them on LinkedIn. You should also look at your current relationships to find people you know who are already linked to IPP’s. I call this the center of influence. Additionally, you should align your prospecting behavior with your prospect’s natural tendencies and interests. For example, if they are active on certain social media sites or blogs, or if they are active in certain associations or will be speaking at conferences, then invest in activity that gives you the best odds of getting to know them.
How do you create an ideal customer profile?
ICP is created by analyzing characteristics of your best customers and identifying commonalities that you can model. There are organizational characteristics, such as size, location and industry. There are role characteristics, such as job title and tenure. And, there are situational characteristics, such as mergers, new hires, and relocations.
Once you find these commonalities, you can use this as criteria to evaluate prospects and opportunities.
How many prospects does a sales person need?
Start with your quota and then subtract the amount of business you expect to generate from existing customers. Then, look back historically at the amount of net new business you can expect to receive through marketing generated opportunities. What you have left is net new business you need to self-generate. Some of this business may come through expanding in your existing accounts. The rest will come through your efforts to acquire net new accounts and grow these accounts. This tends to be the slowest and most difficult revenue to generate.
Take this number and divide it by the average size of a first new sale to calculate the number of new accounts you will need. The number of prospects will be several multiples higher than this, depending on your call-to-appointment and your appointment to sale conversion rates.
