Editorial
The Gist
- Influence buyer perception. Demonstrating potential business problems and solutions can convert non-buyers into active market participants.
- Optimize marketing strategy. Aligning marketing strategies with business objectives increases effectiveness in demand generation.
- Empower through content. Effective B2B content educates, engages and motivates potential buyers, transforming their buying behavior.
The question of whether B2B demand generation is ever possible goes back and forth between marketers. The most emphatic voices say "no way."
In absolutist terms, most would agree. If someone has absolutely no need for whatever you’re offering, chances are you're not going to change their mind.
However, in-market versus not-in-market isn’t a binary choice. There will always be customers who aren't currently in the market but could be (and arguably should be).
They may be unaware they have a problem (but do).
They may think they can't afford a better solution (but can).
They may not know that a solution even exists.
With the right approach, these people could be brought into the market. This will generate demand among buyers that wouldn't otherwise exist right now. Essentially, we’re turning not-right-nows into yes-right-nows.
All of this is based around the central fact that, at any one time, a very small proportion of potential buyers are looking to make a purchase.
95:5 Rule Shapes B2B Buyer Timing
Research by the Ehrenberg-Bass Institute and LinkedIn calculated that roughly 5% of B2B buyers are in-market to buy at any time. This of course means 95% of buyers are out-of-market and won’t be looking to buy for months or years.
This 95:5 rule is an imprecise one as varying B2B sales cycles differ considerably. Some have also pointed out that in a depressed market, the ratio could quickly shift to something more like 99:1.
Whatever the precise numbers, the central premise of the rule makes perfect sense. If you’ve just gone through the disruption of deploying new software or switching accountancy firms, chances are you won’t consider doing so again for a long period of time. We’re not talking paper clips here.
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Related Article: Brand Differentiation: What's It Look Like in B2B Marketing?
Brand Building Bridges B2B Sales Gaps
Because there is a virtually negligible chance of capturing immediate sales here, this is where companies tend to focus on building brand. Success will mean that one day when buyers are in-market again, they will be able to recall the brand at the moment it really matters: when they’re constructing vendor shortlists.
Importantly, however, the approach shouldn’t be a simple either/or between lead generation for in-market and brand building for the rest. There is a valuable middle ground that shouldn’t be ignored. The reality is, if we refuse to believe that might-buy-given-the-right-motivation customers exist, we could be leaving valuable revenue on the table. What's more, we could be doing those same customers a disservice.
If you consider that your options are not twofold but threefold, the opportunities for marketers expand significantly.
Content will play a leading role. Much of B2B demand generation is about convincing potential buyers that they have a problem, that it is important and urgent, and, crucially, that it’s solvable. This means developing content that is laser-focused on customers, showing a deep understanding of their businesses and empathy for the challenges they face.
Often, this will skew toward top-of-the-funnel thought leadership.
Related Article: How to Troubleshoot Your Third-Party Demand Gen Program
Thought Leadership Drives B2B Decision-Making
New research from Edelman and LinkedIn found that 75% of decision-makers claim a piece of thought leadership has led them to research a product/service they weren’t previously considering. Further, 60% said that a particular piece of thought leadership made them realize their organization was missing out on a significant business opportunity. And 23% who ended up researching a product or service they hadn’t been considering began buying from or working with the organization that produced it.
Whatever you call it, B2B demand generation is a valuable area of focus for today’s B2B marketers. Overlook it at your peril. And, now, data from our B2B Effectiveness Engine reveals how to make demand creation efforts more successful. It compares what top-performing B2B marketers are doing that the also-rans aren’t. And many of the most significant elements have little to do with the specific tactics selected.
Related Article: Mastering B2B Marketing Strategies in a Digital Age
How to Improve Your B2B Demand Generation Efforts
- Businesses that have carved out a differentiated position are more than twice as likely (126%) to be highly effective in demand generation than everyone else. But there’s a caveat to that: Your differentiated position must have been both tested with customers or prospects and reviewed against competitors.
- Companies that have written a marketing strategy that flows directly from the business strategy are 50% more likely to be highly effective in demand generation than everyone else.
- Businesses that research the individuals who make up the buying committee for their products or services are 30% more likely to be highly effective in demand generation than average performers.
- In terms of measuring marketing effectiveness, try tracking content consumption. Those that do so are 56% more likely to be highly effective in B2B demand generation than everyone else (the biggest difference across all the measures).
Ultimately, B2B demand generation is about helping move prospects from ignorant to well-informed and from apathetic to actively motivated. Success can shift those not in the market into buying mode. And it can help ensure that the brands that surfaced key business issues and proposed effective solutions are better placed to reap significant rewards.
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