Is Demand Generation the Right Fit for Your Business?

Is Demand Generation the Right Fit for Your Business?

Is Demand Generation the Right Fit for Your Business?

Watch Time – 4:00 Minutes


This video examines the topic, Is Demand Generation the Right Fit for Your Business? The purpose of this video is to help business owners decide if a demand generation and lead nurturing engine makes sense for their specific type of sales process.  We will quickly:

  • Compare and contrast a lead generation process to a demand generation process
  • We will discuss when lead generation without demand generation makes sense
  • What types of businesses and sales process need to extend their marketing operations to include demand generation.

This video was  excerpted from The Differences Between Lead Gen vs, Demand Gen and the Impact on Your Sales Funnel (part 4 of our free  On Demand educational series, The Digital First Transformation and Sales Automation)


Transcript of “Is Demand Generation the Right Fit for Your Business?”

Comparing and Contrasting Lead Generation to Demand Generation

Lead gen and demand gen are much different processes. Lead gen starts with marketing or a cold caller generating a lead. Then marketing immediately turns the lead over to sales. Sales then does all the pre-sales and sales education, typically during one-on-one meetings. Then the lead is either converted into an opportunity, which happens about 20% of the time, or they’re abandoned about 80% of the time.

In contrast, demand gen is a buyer-driven process. Marketing generates the lead, and then marketing nurtures those leads with sustained and automated content marketing and sales education campaigns that supports a buyer’s consideration and preference stages, while at the same time, your technology stack is capturing data and scoring those leads for readiness, interest, and fit, replacing the need for one-on-one early stage meetings with your sales reps.

As a result, marketing passes well educated sales ready Leads to the sales team, where 50% are typically converted into opportunities, 10% are disqualified and 40% are recycled back in the lead nurturing campaigns to keep your solution top of mind until the buyer’s ready to buy. Beyond the 2.5X increase in initial conversions, this recycling is a big advantage demand gen has over competitor running a lead gen process because if we’re 50% of those recycled leads will convert into an opportunity within six to 18 months.

When is Lead Generation the Right Choice for Your Sales Process?

So now that we’ve explained the difference between lead gen versus demand gen, how do you know which choice is the best solution for your business? Let’s start with lead gen:

  • Standalone lead gen is a great choice when you have an established brand or when your market is large enough and mature enough to provide a continuous stream of fresh inbound leads. And just as important, you can continuously afford to compete for these leads, especially if they’re generated through pay-per-click campaigns.
  • It’s a great choice when you can educate and convert the buyer into a real sales opportunity on the first call
  • Lead gen makes sense when there is only one decision maker involved in the sales process and the close takes less than 30 days, and typically the deal is simple enough for an entry level rep to close, and there are no product specialists required to support the close of the deal.
  • It’s also a great choice when your closing rate is above 50% or you can win on lowest cost.
  • Finally, it’s a great choice if the product or solution is a one-time purchase or once it’s purchased, buyers rarely or never switch vendors.

When is Demand Generation Required for Successful Selling?

So next, when do you need to support your sales process with demand generation?

  • You need demand gen when you don’t have an established brand.
  • Demand gen is helpful when there’s not enough traffic for effective pay-per-click campaigns, or you’re priced out of pay-per-click campaigns.
  • Demand generation is also important when you have a complex sales process. When there’re multiple decision makers or influencers, an when it takes more than three calls to close a deal.
  • It’s valuable when you need a product specialist to support sales or you have a senior sales rep closing the business.
  • It’s a great investment when your annual deal size is above 12K a year, when you can scale a customer once they close, or you have additional cross sells and upsells to offer your existing customers.
  • Or it’s critical when sales success means you need to stay top of mind to replace a buyer’s existing vendor or solution.
Demand Generation vs Lead Generation

Demand Generation vs Lead Generation

Demand Generation vs Lead Generation

Watch Time – 4:00 Minutes


This short video is packed with hard data and concrete numbers as we compare Demand Generation vs Lead Generation and explain the strengths and weakness of both a lead generation process and demand generation process.  In this educational video we detail:

  • The different purposes of lead generation and demand generation
  • The results you can expect if you are running a lead generation process
  • The results you can expect if you add a lead nurturing and demand generation process
  • The impact lead nurturing has on creating well educated sales ready leads and increased conversions
  • The cost savings you can expect automating  your pre-sales process  

This video is an excerpt from The Differences Between Lead Gen vs. Demand Gen and the Impact on Your Sales Funnel Part 4 of 4 of our free comprehensive free 4 training seminar on how to effectively sell to the modern The B2B Digital First Transformation Webinar Series.



Defining the Role of Lead Generation and Demand Generation

When you examine the entire sales funnel, Lead Generation is the first step in the sales process and buyer’s journey. Lead Generations job is to move buyers into the top of the sales funnel by creating awareness and curiosity about your solution, and then Demand Generation and Lead Nurturing takeover to automate the pre-sales education process as the buyer goes through their second step of consideration and their third stage of preference.

This process keeps you top of mind as the buyer moves deeper into the funnel and, when the buyer is ready, sales takes over to help them make a decision.

The Stages and Sales Funnel Conversion Results of a Lead Generation Process

Lead Generation is primarily a sales driven process because the seller controls the majority of the buyer education. Marketing or a cold caller targets and generates the lead. The lead is then passed to sales regardless of how ready they are to buy. Then sales invests time, money, and resources with one-on-one pre-sales education, demonstrating the solution, explaining its value, and qualifying that buyer for need, interest, and fit.

After all this time and effort, about 10 to 20% of leads are turned into opportunities and about 80% are either not the right fit or too early in their buying process and not ready to buy. These leads are discarded, with sales promising to follow-up at some future date, which only happens about 20% of the time. This is a continuous cycle requiring a continuous investment in new leads.

The Stages and Sales Funnel Conversion Results of a Demand Generation and Lead Nurturing Process

In sharp contrast to Lead Generation, Demand Generation is a buyer driven process because the buyer engages on their timelines.

A Demand Gen process starts the same way by targeting potential buyers to create awareness and collecting as many leads as possible. But then marketing, not sales, nurtures those leads, sharing educational pre-sales content the buyer can engage with on their timelines.

Demand Generation digitally automates your pre-sales process to make it easy for the lead to consider how your solution can help them solve their problems to become a marketing qualified lead until they learn how your product works and what success looks like so they prefer your solution. While all this is happening, your marketing tech stack is scoring your buyer’s engagement to predict purchase intent until they become a sales ready lead.

The first big difference is pre-sales automation and lead nurturing gets rid of all the time, money, and expense of the one-on-one pre-sales education that’s required in a standalone Lead Gen process.

The second major difference is the quality of sales ready leads. Typically, your sales team can convert about 50% of sales ready leads into opportunities versus the 10 to 20% of a Lead Gen process. Sales will only discard about 10% versus the 80% that are discarded in the Lead Gen process.

A final major difference is that they can recycle 40% back into the Demand Gen engine for extended nurturing to keep them warm until they’re ready to buy. This recycling is a major advantage Demand Generation has over a competitor running a Lead Gen process that discards 80% of their lead investment because most discarded leads buy from someone in three to 18 months so nurturing eventually turns another 25% of these recycled leads into opportunities.


Over time, all these incremental gains stack up, and this is why companies running a Demand Gen process generate 450% more opportunities and close two times the deals over their competitors when compared to companies that don’t.

How Lead Scoring Works in Digital Demand Center

How Lead Scoring Works in Digital Demand Center

How Lead Scoring Works in Digital Demand Center™

In this short demo we explain how lead scoring works in Digital Demand Center. We also share how that predictive lead score is shared directly in your CRM to prioritize sales ready leads and well educated buyers for your sales team.

(Watch Time – 3:00 Minutes)

Summary of How Lead Scoring Works Video

In this short demo we explain how lead scoring works in Digital Demand Center. We’ll explain how Digital Demand Center nurtures leads with content marketing deep into the sales funnel to automate pre-sales education. And we demo the software to share how DDC:

  • Tracks that digital conversation
  • Scores that engagement
  • Predicts when a buyer is ready to buy
  • Alerts your sales team
  • Prioritizes Sales Ready leads directly in your CRM
  • Share insights with your sale team to help develop and close opportunities

Additional Background

Lead scoring is a process that helps marketers identify the potential buyers among a database of leads. This lead scoring process bridges the gap between marketing and sales because marketing can prioritize leads for follow up by a sales representative. That way, the sales team doesn’t waste time contacting all prospects and focuses only on the most valuable ones.

A lead scoring process is now critical to:

  1. Control cost of sales
  2. Maximize the production of your sales team

And coupled with lead nurturing it allows you to maximize your entire lead generation and marketing budget.

Additional Resources

If you are new to the concept and benefits of lead scoring here are some additional resources:


Sales Funnel Results With Lead Nurturing

Sales Funnel Results With Lead Nurturing

Sales Funnel Results With Lead Nurturing + Demand Generation

(Watch Time – 4:00)



In this video we explain sales funnel results with lead nurturing, how long it takes to launch a demand generation and lead nurturing engine, and the sales funnel results you should expect running a campaign to 5,000 well targeted buyers.




When you examine the entire sales funnel, lead gen is the first step in the sales process and in the buyer’s journey. Lead gen’s job is to move buyers into the top of the sales funnel by creating awareness and curiosity about your solution. And then demand gen and lead nurturing takeover. Demand generation and lead nurturing automate the pre-sales education process as the buyer goes through their second step of consideration and their third stage of preference. This process keeps the seller top of mind as the buyer moves deeper into the funnel.  And when the buyer’s ready, sales takes over to help them make a decision.

As discussed in other videos in much greater detail, Digital Demand Center specializes in demand gen and lead nurturing to put well educated buyers into your CRM for your sales team to develop and close. And as part of our service, we also support your initial go-to-market strategy, awareness, and lead gen campaigns if you don’t already have a database built or a lead gen vendor or process you trust.

Time to Launch

To fully launch a demand generation engine, including our solution Digital Demand Center, typically takes about three months. In the first month, you can craft your go-to-market strategy, implement your automation systems, and deal with cleaning, augmenting, and building your database. In months two and three, you can run your initial awareness campaigns to generate early stage leads, augment gaps in your sales education content production, access your marketing automation and sales dashboards, start your reporting, and start the ongoing optimization of your marketing tech and campaigns. By month four, you are starting at execute, lead nurturing, and you’re starting to see your initial flow of sales ready leads in your CRM.

Projected Sales Funnel Results

How long does it take to start seeing the results?  So to make the math easy, let’s assume we start your awareness campaign with 5,000 targets. These 5,000 targets will be sent three different messages for the equivalent of 15,000 impressions. So, early in your campaign, you should see about 200 to 400 early stage marketing qualified leads by month four.  Marketing Qualified Leads are defined by demonstrating initial engagement with your content.  They know who you are and the basics of what you do. And if you need to be aggressive, you can start calling these early stage leads.

Then typically by month five, the marketing engine is doing what it was designed to do as the lead nurturing campaigns continue to target your buyers three to four times a month for and additional 15,000 to 20,000 impressions a month. And as a direct result of this pre-sales education, by month five, you should be producing 5 to 10 sales-ready leads a month.  Sales Ready Leads are defined by potential buyers that are engaging with multiple pieces of content, watching videos and visiting key pages that predict that they are getting ready to short list and make a decision.   This number of “Sales Ready Leads” should increase to 7 to 12 by month six. That hat number should hold steady or grow to 10 to 15 sales ready leads by month eight.

Cost Per Sales Ready Lead and Cost Per Conversion

This means that by month eight, with your steady state investment of about $3,200 a month and your launch fee is over, your engine should be producing between 7 to 15 well-educated buyers a month indefinitely. So, this means not counting your startup costs in any additional content costs that by month eight you should be generating sales ready leads at a high-end cost of $450 per sales ready lead, and a cost of $1,000 per opportunity to a low-end of $210 per sales ready lead in a cost rounding up of about $500 per opportunity.

With a closing rate of 33%, this means you should be paying between $1,500 to $3,000 per closed deal. And probably the best news for companies that are committed to lead nurturing and leveraging Digital Demand Center is that once you’ve launched your engine, the only thing that will prevent you from scaling your sales funnel and lowering your cost of sales is your ability to add more targets to the front-end of your engine. Because doubling your targets from 5,000 to 10,000 will eventually over a year or two and into year three, double your sales ready leads, which over time will cut your cost in half after about a year to 18 months of sustained lead nurturing.

B2B Buyer Trends

B2B Buyer Trends

B2B Buyer Trends — Seven Things to Know

(Watch Time – 8:00 Minutes)

Summary of B2B Buyer Trends video

In this short educational  video we will give you a quick overview of B2B Buyer Trends, including:

  1. Why B2B leads and buyers need and want lead nurturing and digital pre-sales education
  2. Why buyers now expect ongoing lead nurturing and content marketing at every stage of their buyers’ journey
  3. The specific types of contents buyers use during their pre-sales education and buying process
  4. Buyers increased desire to avoid sales development reps (SDRs) until they feel educated and are ready to buyer
  5. When video is the most preferred and successful type of content
  6. How far and committed the top sellers are to sales automation and digital first sales
  7. The ROI companies committed to lead nurturing and a digital first sales are experiencing

This video (an expert from our extensive four part On Demand Training Seminar – The Digital First Transformation and Sales Automation)

Transcript of B2B Buyer Trends Seven Trends — Seven Things to Know

This video is an excerpt from our free On Demand educational series, The Digital First Transformation and Sales Automation to help B2B sellers meet the needs of the digital first buyer. You can find this series and additional educational material on Below is a transcript of this excerpt

Why Leads/Buyers Need Lead Nurturing

First, most buyers are not ready to buy when they first start their digital education. Initially, most buyers are just trying to figure out how to solve a problem. Less than 3% of initial email opens are ready to buy, and even more surprisingly, less than 20% of your pay per click or SEO leads or active buyers. But the positive here is that about 80% of all these early stage leads, we call them marketing qualified leads, will spend money within three to 18 months. So once they engage, you have a short list of potential buyers that expects you to educate and nurture them for an extended period of time, which means your marketing team can’t just run lead gen campaigns and expect the same sales results.

Buyers Now Expect Ongoing Lead Nurturing and Content Marketing at Every Stage of Their Buyers’ Journey (0:48)

Buyers now expect you to share content at every stage of their buyer’s journey to help them move systematically through their process. This starts by you helping them to identify and understand what problems your solution is designed to help them solve through their shortlisting process and even into their validation and consensus building stages. This means you need lead generation campaigns to create awareness to help the buyer understand what problems you solve. Then buyers also expect you to run nurturing campaigns, including both buyer education campaigns and sales automation campaigns to help them with their consideration stages and their preference stages.

Successful Lead Nurturing and Sales Automation Requires Multiple Types and Formats of Digital Sales Education (1:33)

And during these different types of campaigns, buyers want you to share the appropriate type of content in multiple channels so they can control their own buyer’s journey, and they expect you to be prepared to touch them at least 21 times for you to earn their brand awareness and initial trust in to start that process. Most buyers still overwhelmingly prefer to learn about new solutions in email marketing campaigns that are supported by educational content.

However, if you don’t eventually support these email campaigns with paper per click, social media and SEO campaigns, you’ll miss 33% of the market who prefer these channels. And at this stage, the type of content buyers prefer in all three channels are short. How-to videos, educational blog articles in industry insights and stats that help educate the buyer and also help you to demonstrate thought leadership. Then once that lead is generated, you need to be prepared to share multiple types of content to nurture and create demand for your solution. Because buyers leverage all types of content to move a decision forward if they’re consideration and preference stages to become educated enough to make a decision. So what’s required for success? In a recent Merkel survey of B2B buyer trends, 78% of buyers stated they used case studies and use cases in their process, 76% used webcast educational videos and educational blog articles.

68% used white papers, and in 20 21, 50 4% of B2B buyers are now using podcasts. So you need to be prepared to use a wide variety of content in multiple channels to make it easy for the buyer to buy using your buyer education in sales automation campaigns

Buyers Want to Avoid Sales Development Until They Feel Educated and are Ready to Buyer (3:43)

Perhaps the biggest impact of this digital transformation is that buyers now want to avoid sales reps until they feel educated. As a result of this buyer preference for digital first education, 64% of sellers state, they’re now less dependent on sales reps. 80% of buyers don’t want to speak to an SDR until they have completed their pre-sales research. 33% moving to 44% for millennials want to avoid sales completely if possible, and most buyers won’t engage with a sales rep until they’ve consumed at least six to 12 pieces of content. Digital content is now replacing some of the most time consuming in historical tasks of the sales development rep, first and foremost, being all the time and money it takes for pre-sales education of the buyer.

Video is the Preferred Content for Pre-Sales Education and Mid-Stage Buyer Education (4:33)

And in large part, most of this pre-sales education is now being done with video because when it comes to content, we’re both video and text are available on the same page. 72% of buyers would rather use video to learn about your solution using video and email campaigns boost open rates and clickthroughs and video posts have the highest engagement in social media campaigns. And probably the biggest bonus of video is that it leads to conversions or at least predicts conversions because 25 to 45% of buyers that watch a webcast convert into a sales opportunity, and most buyers state they’re ready to engage with sales after watching three to five videos.

Your Most Successful and Largest B2B Sales Competitors are Already Striving for Sales Automation (5:22)

The next thing that’s important to understand about this transformation is the competitive landscape. So Gabriel Sales has been dealing with tech and tech marketing for a long time, and we’ve seen the pendulum swing back and forth between giving SMBs an ability to compete effectively and giving the enterprise the advantage. And right now, the enterprise companies have an edge because they’ve taken meeting the needs of the digital buyer seriously and have driven digital content deeper into the sales process faster.

This was one of the really big changes that occurred during the pandemic because the enterprise was better equipped to immediately be able to deploy their existing marketing resources to digital marketing to support the virtual and remote sales process, and they were able to fund new technologies faster and more effectively when travel budgets were cut. As a result, 75% are now leading with Digital First to support their entire pre-sales process, and in a few short years, the majority of enterprise companies already believe that these new sales processes are as or more effective than their historical processes. In a full 85% of enterprise companies are now committed to building a digital first go-to-market sales process moving forward. And over the next several years, digital spend is once again predicted to double Gartner’s future of sales. Research is now predicting that by 2025, 80% of B2B sales interactions will occur in automated in digital channels.

To compete for and win business will require a commitment to content marketing and nurturing.

Sellers that Implement Lead Nurturing and Digital First Sales Automation Win More Business and Drive More Revenue (7:13)

Finally, what can your business expect when you embrace this digital first transformation? Buyers are already dramatically rewarding sellers for a digital first sales and nurturing process. Sellers that are committed to content marketing after the initial lead has been generated, see their sales team’s opportunity pipeline grow by over 450% in nine to 18 months. It’s harder to get a seat at the table with your buyers if you don’t provide content after you generate that initial lead. And most importantly, and most exciting sellers that do a good job helping buyers buy digitally are now closing at two x the rate of sellers that don’t.


What is B2B Demand Generation?

What is B2B Demand Generation?

What is B2B Demand Generation?

(Watch Time – 90 Seconds)


In this video we answer the question, what is B2B demand generation? We explain the goal and purpose of both a lead generation process and a demand generation process and how working together these two processes can produce well educated buyer ready for sales.



What is Lead Generation?

Lead generation is the process of executing marketing campaigns to generate awareness for your solution.

What is the Goal of Lead Generation?

The goal of Lead Gen is to provide buyers with a basic understanding of the problems you solve and to spark curiosity about your solution so potential buyers want to learn more and become leads. Leads can be generated with multiple tactics, and the primary goal of these tactics is to collect contact information and basic data about a buyer’s interest, to create a database of potential buyers for your solution that can be developed into sales opportunities.

What is Demand Generation?

Demand Generation is a process that extends Lead Generation with the execution of sustained lead nurturing campaigns.

What is the Purpose of Demand Generation?

The goal of Demand Generation is to create well-educated pre-qualified buyers by using content to help buyers navigate the consideration and preference stage of their buyer’s journey.  Content helps buyers understand how your solution helps them solve their problems, so leads turn into marketing qualified leads. And then the seller continues to nurture these leads using content to get buyers excited about the benefits of their solution, so they become sales-ready leads.

What is the Goal of Demand Generation?

The goal of Demand Gen is to create a prioritized list of well-educated, pre-qualified sales-ready leads to increase your sales team’s productivity.