Business growth and business development is an amazing scene for those within it. Think about it, you’re literally working to grow the business you work in or own. If you’ve done any work relating to this, you probably have heard about demand generation. It takes the cake as the “go-to” for boosting revenue. However, when people jump right into the demand generation without taking a look under the hood it eventually leads to inefficiencies within the funnel, inefficient marketing spend, and then slowed growth. Today we’ll walk through four crucial areas you should fix before pushing the demand generation efforts… Your business will thank you later!
Fix Churn
Regardless of the industry you’re in, customer churn is something you’ll face. High customer churn can significantly undercut your growth efforts. Retention metrics are top of mind when found in this position such as lifetime value (LTV), 90-day retention rates, and net retention rates. Not only do these data points reflect customer satisfaction, but they also boast your product’s value. When you find why people leave and then you find how they stay, you’re bound to create a more stable base which to expand.
Drive Business Expansion
In the spur of the moment, we want more customers. We want new customers. However, it’s sometimes a more cost-effective solution to make a push at maximizing the revenue from your existing customers. Try techniques such as cross-selling and upselling. With this, you have a chance of increasing average revenue per user and you have the chance to enhance customer engagement metrics by providing more value. Expansion isn’t just about selling more; it’s about boosting relationships with those you’ve started with.
Improve Adoption
User engagement and long-term retention is usually determined by the initial experience a user has with your product or service. Onboarding processes that are thorough and complete will allow new customers to understand and get the maximum benefit from your product right from the get go. When we say “improving adoption,” we mean educating users, providing timely support, and ensuring that they fully utilize your product’s features. This directly contributes to reducing churn rates and increasing perceived value of your product. Over deliver here, that’s the biggest piece of advice.
Increase Close Rates
We’ve spoken about ratios and why they matter with content, however, in a general sense, when improving or optimizing your sales funnel, you should focus on improving SQL to close rates. A rate of 30% is good, but try aiming for 40-50% to reach the ideal stage. Efficient sales processes and effective qualification of leads are vital here. High close rates mean that your sales team is working effectively with pre-qualified prospects, leading to better use of your resources and eventually higher revenue generation per lead.
Rethinking Demand Generation: A Strategic Shift
Once all of the foundations are set, focusing on demand generation becomes easier and more effective. Why? Well, because you can afford to invest more aggressively in acquiring customers. The idea is simple: with higher customer value and lower churn, each new customer will bring in more revenue over their life cycle. This means you can spend more on acquisition while also juggling a healthy cost-acquisition cost (CAC) payback period. In other words, a strong internal framework allows you to leverage demand generation to its fullest potential, driving sustainable business growth.
While everyone wants a company or an individual to run demand generation, and to make demand generally strong, ensuring that the foundation is laid for your growth engine is key. Address these aspects, fix them, and you’ll find that your demand generation efforts are far more fruitful and you business will become much more robust.
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