If you are not getting the demand gen results you expect, then the problem may lie in an area you are not even considering today. 

‘Why is our demand gen broken, and how can we fix it?’

At some point in every conversation I have with a CEO or CRO, the topic turns to the state of their demand funnel. At times, the discussion centers on how they keep business strategy, marketing and operational execution aligned in the face of evolving buyer behavior.

Usually, the conversation turns to the challenge of keeping the funnel full and/or its poor conversion. The CEO feels the heat from the board and the head of Sales is frustrated by not making quota and they can’t put their finger on exactly why. The question to me is straightforward – “Why? And can you fix it?” -because that is what we do.

They expect my response to be a rundown of today’s most effective campaigns, CTAs, engagement practices, and lessons learned from other clients. Instead, I take them in a different direction – a quick assessment of the state of their market, product and sales/marketing processes.

Why? For the simple reason, that if the market opportunity hasn’t achieved a minimum state of maturity, investing in demand generation is a waste of time and money. It will not yield convertible pipeline no matter how much money, people or creativity you throw at it.  And that applies equally to start-ups and established companies.

Assessing the factors impacting demand gen

A client we worked with had for years tried and failed at demand generation. Through sheer hard work, they won small pilots with brands any B2B SaaS vendor would be envious of. But marketing was a revolving door as each marketing leader was unable to deliver a steady stream of quality leads. To compensate, Sales staffed up BDRs and field sales with no better luck.  What they didn’t see and what the board didn’t want to accept was that the market had not sufficiently stabilized for commonly used demand generation and sales activities to work.

It’s a message that CEOs don’t like to hear but one, upon reflection, resonates with Sales and Marketing.

Some of the assessment factors I look at are:

1. How mature is your market category or are you jumping between different categories looking for the best fit?

2. What is the amount, level and tone of coverage by influencers and analysts on your market?  Is it future-talk, thought leadership, best practices or nonexistent?

3. Do you have a five to ten paying reference customers who actively participate in press releases, UGC, media opportunities, videos, etc.?

4. Does your value proposition frequently change because it doesn’t stick?

5. Does your sales cycle show signs of repeatability in one or more target markets?

6. Do you have tailored content for each key micro-moment of your top target markets’ journey? Were the journey maps developed ‘outside-in’?

If the market is too immature AND you lack brand name customers publicly validating the importance of the problem and quantifying the benefits of solving it – you are not ready for demand generation. Because ROI won’t materialize.

Sure, it might feel good to launch a couple of campaigns. Sales will get off Marketing’s back and activity always looks good to the powers that be but you’re kicking the “can” down the road 30 to 60 or more days. There is also a real risk of damaging your future pipeline as well as market and internal credibility.

In the meanwhile, help customers turn into evangelists

Just because the market isn’t ready for demand generation doesn’t mean you’re off the hook for revenue.

• Make sure Sales and Marketing are aligned on the state of the market and go forward plan.
• Staff Sales with proven hunters with rock solid “Rolodexes” that have purchased repeatedly from that person. For now, sales must come from personal relationships, evangelism, referrals and networking.

Marketing’s top responsibility is customer engagement and mindshare.  The adage of mindshare before market share is truer today yet ignored by most companies.

Marketing owns working hand in hand with customers to understand their perceptions, define the problem and ideal solution(s), help champions be internally successful and understand what it takes to get to measurable ROI. Done right these relationships become trusted partnerships. Trust is crucial as it removes common barriers that customers throw up when asked to participate in case studies, content, videos, speaking opportunities and media communications. Marketing, in co-creation with customers, must execute a cadence of true thought-leadership and evangelism that promotes the customer champion and the users; the product takes a back seat. You become known in the market from your customers’ evangelism.

Through a consistent drumbeat of thought leadership and storytelling across all channels, you’re helping to shape your market and expand reach while building your brand reputation. Done consistently over time, it will attract influencers and even prospects.  It is this foundation that is critical to future demand generation.

Turning the corner – when to start demand gen campaigns?

Back to our client – they were frustrated but not alone. Competitors large and small were being acquired, diversifying their product portfolios, and some going out of business.

Marketing stopped demand generation and focused on building a steady cadence of thought leadership around industry trends and emerging workplace issues in select industries, channels, and media outlets. The product was rarely mentioned. At the same time, Marketing worked with Sales to build customer relationships. Their approach was “how can we, the vendor, help you be more successful”, “how can we help you grow your business”. As trust was built, customers agreed to participate in videos, speaking opportunities, and media engagement.

A year ago, something happened. A small handful of industry analysts started talking about new market categories and a new way of looking at an old problem. Existing big vendors of the ‘old way’ started talking about new, different ways to solve this problem. Leads that were ‘dead’ 12 to 24 months earlier started to reach back out to the company. This new market had woken up.

The category and problem had matured to a point where market evolution was replacing inertia. It was time to start investing in targeted, personalized demand generation built upon the mindshare foundation that had been painstakingly built.

You’re ready to invest in demand generation when the answers to the readiness assessment questions materially change.