What Are the Benefits of Designing a B2B Demand Strategy?
As a B2B business, you face a fierce battle against aggressive competitors. Lead generation is no longer enough. You must consider demand generation to maximize your company’s full potential, sustain good revenues, and grow.
This article explains three reasons why demand generation is worth the investment:
- Shortened sales cycle and accelerated sales pipeline
- Higher and longer customer retention
- Building up trust and credibility
Are you ready to learn more about the benefits of a B2B demand strategy? Let’s go.
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1. Shortened Sales Cycle and Accelerated Sales Pipeline
The customer-buying journey in a B2B market is longer than in a B2C market because there are more decision-makers. For example, purchasing customer relationship management (CRM) software might involve a chief technical officer, finance, and sales departments.
It is also more complicated, especially since the customer (who is the buyer) is not always the user. Consider CRM. Vendors might market their products and services toward C-suite executives or business owners because these people often have the final say.
However, the actual users are salespeople. The differences in needs and pain points between the decision-makers and the users deserve space when discussing whether to purchase the CRM.
For all these reasons, a B2B sales funnel or cycle usually includes one or two more stages, such as evaluation and proposal. Many studies have shown that the cycle can be as long as two months, depending on the industry, compared to only minutes for B2C sales.
You cannot skip any steps in the long process, but what if you can shorten the sales cycle? You can do that with demand generation. It will take some effort, but here’s why it will ultimately be worth it:
- Demand generation is a long-term strategy that continuously engages and sustains brand awareness or interest. This way, when clients search for solutions, yours will always be one of the options they consider.
- It helps attract the right leads. These people or companies are more receptive to your offers, products, and services. When they reach the sales pipeline, they are more likely to be qualified leads, ready for conversion.
- Demand generation has a wider audience. Unlike lead generation, which focuses on sales-ready prospects, a demand strategy promotes your B2B business to a larger, more targeted crowd. The more people you can attract, the more leads you can qualify or endorse for the sales department.
- It improves analytics. It provides valuable data and insights to help you measure and optimize marketing performance, understand customer behavior, and drive smart decision-making. This data can include website traffic, click-through rates, lead quality, customer engagement, and revenue attribution.
2. Higher and Longer Customer Retention
Businesses might spend less on ads in 2023, but the projected total global digital ad spending of nearly $570 billion remains high. Considering that B2B is more resource-intensive than B2C, how can you set aside a huge budget for online marketing without compromising your cash flow?
You can use demand generation to improve your customer retention rate. In particular, retain a greater number of customers and keep each one longer.
The following strategies can make a big difference:
- Develop targeted educational campaigns that highlight the value and benefits of your products or services to existing customers.
- Provide in-depth guides, tutorials, or webinars that help your customers get the most out of their purchase or address common pain points. Optimize content marketing to expand reach.
- Run referral programs that encourage existing clients to refer your products or services to their networks, converting them into brand advocates to attract more prospects.
- Highlight innovation and set up a schedule to regularly introduce your offerings' updates, enhancements, or new features.
- Host exclusive events, webinars, or sneak peeks of products or services for your existing customers. Offer them early access, beta testing opportunities, or VIP experiences to generate excitement and demand.
- Build customer-success programs. Assign dedicated success managers or customer support teams to provide personalized guidance, assistance, and ongoing support.
3. Building up Trust and Credibility
China is one of the world’s biggest trading partners for many countries, including the United States. Closing deals with China takes time, however. This is because the country observes a culture known as Guanxi.
A word that means “networks” or “connections,” it emphasizes the value of shared ties or personal trust in relationships, such as business. The process of creating these ties might involve asking personal questions, dining with you, or even agreeing to meet with your family.
This Asian economic powerhouse is not the only country with such a culture. The situation is similar in Spain, Japan, and Hong Kong, among others.
Trust is an economic asset in the global marketplace, particularly in e-commerce. However, it is also not the easiest to acquire. Chinese business people, for example, are wary of talking to someone new, and you might need a referral or introduction to schedule a meeting.
Fortunately, you can use a good demand strategy to build your credibility and reputation in the industry.
- Establish transparent and open communication with your target audience. Clearly articulate your value proposition, product features, pricing, and terms and conditions. Avoid misleading or exaggerated claims that can backfire in the long run.
- Share customer testimonials and case studies that highlight successful experiences and outcomes. Provide real-world examples of how your product or service has helped other businesses achieve their goals.
- Position yourself as a trusted authority and thought leader in your industry. Use the E-E-A-T principles to create valuable content, such as blog posts, white papers, webinars, or podcasts. Share industry trends, best practices, and actionable advice to demonstrate your knowledge.
- Display trust seals, certifications, or awards that objectively validate your commitment to quality, security, data privacy, or industry standards. These include certifications such as ISO, SOC, GDPR compliance, or industry-specific accreditations.
- Provide exceptional customer support and service throughout the buyer’s journey. Be responsive, knowledgeable, and helpful in addressing customer inquiries or concerns. Create a frequently asked questions (FAQ) section on your website or blog, or make your FAQ interactive with a chatbot.
B2B demand generation supports the entire sales pipeline by generating and nurturing high-quality leads, driving customer engagement and conversion, and facilitating seamless handoffs between marketing and sales teams.
However, you need the right techniques to make it work. Digital Authority Partners (DAP) offers a range of relevant services, including data-driven lead-generation campaigns, targeted content creation, and marketing automation implementation.
Our focus on seamless integration between marketing and sales teams ensures smooth handoffs, effective lead management, and improved collaboration. Contact us to learn more.
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