5 Reasons Why Your Demand Generation Strategy Is Not Performing and How to Fix It

Summary

Synopsis:

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    5 reasons why demand generation strategies underperform, including recommendations and examples to enhance outcomes

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    How to collect accurate data and insights on buyers to update demand strategies

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    Why developing a rich buyer experience is essential for long-term success

Determining the factors that lead to the success (or failure) of a demand strategy is not always straightforward due to the long-term nature of campaigns and the average duration of B2B sales cycles.

However, there are five common reasons as to why a demand strategy might not meet expectations. All five reasons can be addressed with accurate data and approaches to better understand your buyers’ pain points and needs.

Discover five reasons why your B2B demand generation strategy might be underperforming and the best solutions to enhance outcomes below.

Short-term expectations for long-term strategies

Demand generation is a long-term strategy, with results typically seen at the end of a sales cycle. Considering that in B2B, 55.8% of sales cycles last over six months (Voice of the Buyer Report, 2024), the full results of a demand strategy can be difficult to track on a monthly or quarterly basis.

This does not mean, however, that short-term tracking is impossible. It is important to establish tangible benchmarks and goals to steer your demand generation strategy and demonstrate its evolving performance. This is particularly important for Account Based Marketing (ABM) initiatives since their planning and execution can be quite resource intensive.

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    Determine short-term goals and KPIs (monthly or quarterly)

Determine realistic, short-term goals that support your long-term vision for the demand generation strategy.

Examples

  • Click-Through Rate (CTR)
  • Conversion rate per sales funnel stage
  • Sales meetings booked
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    Bolster your demand strategy with short-term plays, such as Pay-Per-Click (PPC)

Leveraging paid media, such as PPC and targeted display, generates a quick initial touchpoint with potential buyers, who can then be routed to dedicated lead nurturing cadences. This allows you to assess performance to inform follow-up and the next steps of the demand strategy.

Examples

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    Leverage social selling and events

Salespeople can establish relationships with prospects and gauge their interest in the brand’s solutions quicker than a marketing-led campaign. Events are ideal for encouraging prospects to advance to later stages of the buyer’s journey, as their atmosphere allows salespeople to address pain points dynamically.

Examples

  • Create a social media campaign with a valuable asset, which sales can share with their followers and prospects
  • Transform a product demo into a fun game at an event to demonstrate key benefits in a memorable way

Unoptimized budget for the scope of the demand strategy

Optimization is key to ensuring goals and expectations are met, especially when stretching a tight budget. Thus, making the most of your resources will ensure the longevity of your demand generation strategy, as well as encourage buy-in from stakeholders for future iterations.

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    Leverage predictive analytics and buyer intent data

Both datasets can identify which prospects are the most qualified for your solutions, so you can prioritize nurturing and sales outreach accordingly.

Examples

  • Score leads based on historical data of demand campaigns to filter them into separate nurturing cadences
  • Utilize buyer intent data to assess which prospects are the most invested in your brand, and prioritize your budget to engage them with relevant touchpoints
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    Focus on key industries or accounts

Utilize your buyer personas and Ideal Client Profiles (ICPs) to determine key markets, as well as analyze prospects in your pipeline that are most likely to convert to prioritize your budget (more on this in item #3).

Examples

  • Focus on 1-2 industries for targeting, and after lead generation, utilize ICP criteria to determine the key prospects/accounts to prioritize resources for personalized outreach
  • Leverage influencers in your target market to assess brand reception and adjust messaging and offerings accordingly
  • Launch an ABX campaign for select accounts to improve your conversion rate with high-value prospects
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    Leverage low-cost outreach, such as social selling and lead magnets

Engage salespeople and arm them with high-impact content to generate demand at a low cost, establishing relationships for the future. Lead magnets, which are high-value assets gated behind a form, can also be promoted organically to generate leads.

Examples

  • Develop a free tool and gate it behind a form that salespeople can share with their followers
  • Craft snackable content that encourages a conversation with sales, such as listicles on the latest trends or playbooks
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    Ensure interdepartmental alignment

Establish communication flows between departments at your organization—primarily, marketing, sales, client success, and stakeholders. Aligning teams is key to demonstrating results and how budgets are being utilized.

Examples

  • Establish a demand committee with leaders of each team involved with demand generation strategies
  • Assign a team member to report on demand strategies monthly, and share results with stakeholders
  • Create an internal communication channel for updating teams regularly on any new developments

Targeting and messaging are not precise

In a shifting market, where buyer preferences change quicker than organizations can develop their targeting models, demand generation strategies risk being outdated before they are launched.

This means that the pain points of buyers might be outdated. ICPs and buyer personas can also shift as changes in the macroeconomy impact an industry’s priorities and how their players adapt.

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    Always update your ICPs and buyer personas

Ensure that your buyer profiles are updated regularly (ideally by semester) so that strategies are aligned with current buyer preferences.

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    Audit performance and conduct surveys

Keep track of KPIs (particularly those related to messaging) to determine what benefits, copy, and imagery are performing best with your audience. It is also key to survey clients and prospects to gain insights on their opinions and recommendations for your organization.

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    Prioritize channels your audience frequents

Rather than spread resources thin by engaging your audience across mediums, determine those where your buyers conduct the majority of their research as a buying committee. Make sure to adopt an omnichannel approach with these key channels to ensure your audience has a rich brand experience.

Examples

  • Launch an omnichannel demand campaign for a sales cycle (6-12+ months), and incentivize key prospects at its end to glean insights via a survey
  • A/B test messaging via email nurturing to determine relevant copy and product benefits for audiences at a low cost

UX and buyer enablement are not prioritized

Developing a rich buyer experience requires time and care to ensure their purchase journey is personalized and memorable. Unfortunately, prioritizing resources to develop this experience is often sidetracked by other crucial, short-term revenue activities.

However, there are simple solutions to build a relevant user experience (UX), which will empower your demand generation strategy and drive engagement, as well as improve client retention.

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    Identify attrition points in the buyer’s journey

Determining when and how most prospects disengage from marketing efforts will allow you to action improvements to retain them. This can be done via UX research, surveys, or by asking sales to report on when most prospects stop engaging with outreach.

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    Make brand discovery “self-service”

A common attrition point in buyer journeys is when a prospect needs to engage with sales to discover the unique benefits of an offering or fill in a lead form. According to 6sense’s 2023 Buyer Experience Report, 78% of buyers have already established their purchase requirements before contacting sales, which means that organizations must allow prospects to discover the brand at their own pace, with the fewest obstacles possible.

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    Personalize at scale with dynamic content and AI

Leverage AI solutions to facilitate the creation of personalized content for different buyer personas, such as one-pagers, landing pages, and product pages. This makes messaging more precise and allows salespeople to engage prospects with the most pertinent information for their needs.

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    Ensure that lead nurturing cadences are relevant

Nurturing allows you to engage prospects with educational content until they are ready to buy, which means that your cadences may be irrelevant if prospects are disengaging midway in their buyer’s journey. By tracking the performance of nurturing cadences and leveraging data from surveys and sales, it is possible to improve the efficiency of nurturing to encourage progression to the bottom of the sales funnel.

Examples

  • Trial a UX-first product page for a key audience, which can then later evolve to an ABX campaign
  • Develop landing pages per buyer persona, utilizing heatmaps and sales feedback to determine attrition points and relevant messaging

Low-quality and unactionable data

With data privacy laws becoming more commonplace worldwide, alongside Google phasing out third-party cookies, gaining high-quality data on buyers is becoming increasingly difficult.

Beyond the quality of data, many companies suffer from the “unactionability” of their datasets. In other words, they have audience data which does not enable insights to inform demand strategies, such as data on company size and geos, which by itself does not help determine buyers’ preferences.

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    Invest in a first-party data partner

A partner with a proprietary database and content distribution network can allow you to engage key prospects with timely data on their preferences.

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    Streamline your tech stack for quick insights

Make sure your tech stack allows marketing, sales, and stakeholders to easily glean insights from demand programs, allowing parties to optimize strategies accordingly.

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    Start collecting lead intelligence

Establish a lead intelligence methodology at your organization, where lead data is primed and refined according to its actionability for future campaigns.

Examples

  • Launch a content campaign with a first-party data partner to obtain lead intelligence to inform future strategies
  • Train your teams in analytics to ensure timely insights are gleaned from martech solutions
guide

Glean first-party data insights from INFUSE’s extensive database of 252+ million B2B profiles across 32+ verticals

Key takeaways

When determining the effectiveness of your demand generation strategy, make sure to inform your analysis with these key takeaways:

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    Actionability and benchmarking are key for demand

Long-term strategies might make progress and results unclear. Ensure that your strategy is benchmarked with short-term goals (monthly or quarterly) to guide it in the right direction.

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    Buyers seek rich experiences

Self-service, relevant content, and UX are all tactics to build a rich brand experience that is memorable and encourages further engagement. Always strive to design a buyer’s journey that is enjoyable and answers key objections intuitively.

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    Develop a rich, first-party database

As cookies phase out, it is paramount to access first-party data on buyers to inform your demand strategies with timely insights. Build your own database or contact a trustworthy partner.

Plan your demand strategy and exceed expected outcomes with INFUSE demand experts

The INFUSE team is experienced in strategizing and launching B2B demand campaigns for 32+ industries, building a stable pipeline of qualified and engaged buyers.

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