24th Feb, 2022
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- Todayâs marketers are faced with one smouldering question — What is the magic formula to amplify demand generation by several folds?
- Read this blog to explore ways to reduce costly and business reducing errors on the digital demand gen path and driving business growth
Â As the world gets used to new ways of living and working, businesses of all shapes, sizes and industries have adapted rapidly to several complex challenges. One of the most lopsided impacts of the pandemic has been that while some industries and businesses are struggling to survive due to plummeting demand, others cannot keep up with the orders they are getting.
The global economy witnessed a contraction of nearly 3.5 percent in 2021, and although the outlook for 2022 is positive so far, it could easily be derailed by further waves of the pandemic. In such challenging times, businesses must go back to their core fundamental values and deploy tried and tested tactics. One of these, demand generation, is the focus of this blog, and we look at how to bolster demand generation tactics in todayâs unpredictable world.
Why demand generation and forecasting are critical for business success
The challenge of demand generation has been ubiquitous in the business world, but it has never been more apparent than during the last twelve months. Add to that predicting demand has become an uphill task because consumer behavior and preferences have shifted abruptly and permanently. Both demand generation and prediction are vital to the success of any business as these activities help increase revenues and plan ahead, respectively.
Demand generation campaigns target all aspects of the revenue and customer cycle, including leads, conversion, retention, engagement, and loyalty. Itâs vital to remember that demand generation differs from lead generation campaigns. While both may have similar goals, demand generation is a much more expansive, comprehensive, and aggressive way to attract customers. Instead of collecting prospect and lead information, demand generation increases the need for products, demonstrates the utility, and generally uses mass communication methods.
With this in context, let us dive deeper into four simple strategies that can help boost demand generation efforts.
Demand generation during Covid-19: Back to basics
Focus on enhancing brand awareness
Studies have consistently shown that continuous brand awareness efforts have a positive impact on revenue and customer loyalty. People tend to choose brands they identify and remember, and digital demand generation does precisely that: tell people that you exist. It might seem like an obvious strategy, but unless your business brand is among the industry leaders, a vast audience hasnât heard about you. Brand awareness helps reach those new eyes and customers and increases demand for products and services.
There are plenty of ways to boost brand awareness, but most of them use some form of marketing or promotion strategy. Traditional marketing methods might involve running advertisements or organizing events, but most contemporary approaches are digital-focused.
Businesses can opt for organic campaigns driven by content and user-generated content or invest in paid campaigns (more on that later). The other approach is to create free tools, templates, or other valuable resources and offer them free to establish a relationship with new audiences.
However, they should remember to create a message that talks about the utility of their product or service and why it is better than the competition. In other words, increasing brand awareness isnât about selling your product but educating new audiences about its benefits and value proposition. Itâs a fine line to tread and that is why most enterprises collaborate with reputed marketing agencies, like Denave, to expertly handle their outreach and promotions.
Create exclusivity and scarcity
The scarcity principle has to be one of the few strategies that offer a near-guarantee to increase demand. From Supreme to Starbucks, businesses attract customers with the promise of exclusivity. There is something in how humans are wired that automatically equates limited availability with a desire for ownership, which forms the crux of how these strategies are deployed.
Whether it is offering limited edition products, enhanced versions of existing products, time-bound promotions, and discounts, or offering an exclusive experience, businesses have tried it all. In fact, brands like Amazon and Apple routinely advertise and promote out-of-stock products to their customers to fuel their feeling of missing out. Similarly, the entire diamond industry follows the scarcity principle and is able to demand a premium on prices.
As a starting point, businesses can explore introducing a novelty product/service with enhanced features or in collaboration with some other business that offers an attractive value proposition for customers. Creating scarcity and exclusivity is a multistep process that starts with market and customer research and involves marketing, promotion, discounts, sales, among other activities. So you will need to build these capacities or hire domain experts. Another aspect of this approach is to offer access to exclusive perks and benefits, which also lays the foundation for customer loyalty, a concept discussed in detail below.
Embrace new forms of marketing and promotions
While the Covid-19 pandemic has accelerated the rate of digitalization in many industries, the fact is that most enterprises were caught off-guard with the pace of the change. Studies have shown that as recently as early 2020, a majority of businesses had no planned approach to make the most of digital marketing tools and strategies. In other words, businesses continued to rely primarily on legacy systems and processes to attract and retain customers, whereas digital marketing was used ad-hoc. But sending a weekly newsletter with product catalogs simply doesnât cut it anymore.
As businesses face volatility and unpredictability, they must embrace new forms of communication and engagement with their audiences by building a presence where their customers are. This includes (but is not limited to) indulging in video marketing, content marketing, social media marketing, influencer marketing, affiliate marketing, podcast marketing, etc. The process of cultivating a lasting and emotional connection with customers is fraught with challenges in an ecosystem wherein every other brand is vying for the same.
No matter the scale or industry, businesses must use these strategies to introduce themselves to new audiences, engage existing customers, and boost revenues. Using new-age marketing tactics have other advantages too. For instance, businesses can identify instant customer reaction, engagement becomes a two-way street with comments, authentic feedback is readily available, and there is a ton readily available of user-generated content. There are many digital marketing firms, like Denave, that help businesses plan, execute, and measure multimedia campaigns as well.
Strengthen relationship with existing customers
The Pareto Principle is often applied to business revenue and it says that 80% of sales come from 20% of recurring customers. And what better time to strengthen this connection with the most loyal customers than during a climate of global uncertainty and disruption.
Customer loyalty can be cultivated using many tried-and-tested tactics like loyalty programs, cards, exclusive clubs, discounts, and deals. However, the concept of customer loyalty has also undergone a silent transformation over the past decades. Customers expect their preferred brands to live up to the values and ideals they promote, be vocal on social issues, and give back to the community. They are willing to become a part of exclusive loyalty programs and clubs as long as they receive personalized recommendations and are not spammed with promotions.
It can be a challenge to reconnect with passive or dormant customers, but the key lies in being authentic and earnest. Crafting a campaign to woo existing clients and customers requires a high degree of expertise, finesses, and creativity. It must be rooted in a genuine concern for the community of customers and engage with them as humans with emotions, rather than email ids in an automation tool.
Increasing demand generation: The Bottomline
The Covid-19 pandemic has disrupted the global economy in several detrimental ways.Â Many businesses have witnessed reduced revenues, lower demand, customer attrition, drop in customer loyalty, challenges in shifting to digital means, migrating the workforce to remote arrangements, and ensuring the safety of their employees. Demand generation campaigns can help businesses rejuvenate their brand and reach new customers.
As mentioned before, marketing has an integral part to play in the process. Denave has helped thousands of global businesses in finding their unique voice, attracting customers, and establishing a stable connection with them.
Get in touch with us to know how we can collaborate.