Online Lead Generation 101 – Demand Generation vs. Demand Fulfillment
Do you know how much Google made during the 12 months trailing 2nd quarter of 2012?
$43 BILLION dollars.
How about did Facebook make?
$4.3 billion dollars. About 10% of what Google made.
So one might conclude, does Google have 10 times Facebook’s traffic?
Nope. They have about the same:
So what the HECK happened.
Same amount of traffic yet only 10% of the revenue?
What’s going on here?
Simple: demand GENERATION vs. demand FULFILLMENT
Que es demand generacion vs. demand fulfillmente?
(Ok, my spanish is rusty.)
What’s the difference, you ask?
Demand generation – People don’t know who you are. They discover who you are (company, product, idea, service, trend, news, organization, etc.).
Demand fulfillment – People know you you are. They are looking for you.
Demand fulfillment cannot precede demand generation because people wouldn’t know what to look for or what search terms to use.
Makes sense, right?
How would you know about solar panels if you’ve never even HEARD of it?
If you’ve never even heard of it.. what would you enter into the input box into a search engine?
Demand generation is awareness, and demand fulfillment is satisfying the demand (for more knowledge).
And of course, if you are aware, there is a HIGHER chance that the visitor has the desire to purchase (assuming the product/service is commercial in nature).
Certain sites are more on the demand fulfillment side than others..
Here’s an excerpt of an interview with Sheryl Sandberg, the CFO for Facebook (src):
When you see advertisements on Facebook that want a response, I still think they’re demand generation. But they’re trying to get you here (she points to “awareness” at the top of the funnel). In other words, they’re taking you all the way from here (awareness) to here (purchase) in one ad or one experience. They don’t believe you got on the site looking for what they’re selling. When you go to search, you’re “OK, shower curtain. Looking for shower curtain.” You already have intent, I’m going to take you to purchase.
If I saw a shower curtain on our site, no one thinks I’m searching for shower curtains. It’s more that a friend bought a shower curtain. If I see an ad for Sprinkles cupcakes, I’m not looking for dessert. So there’s still demand generation. Demand generation does not mean you don’t want action. It just means you’re starting here. You’re trying to generate awareness.
Why Demand Fulfillment = $$$
Where does the demand fulfillment (i.e. search) actually occur?
BINGO… SEARCH ENGINES.
This is WHY search engines make EXPONENTIALLY more than media sites because the intent to purchase is WAY better.
Because odds of you deciding to buy on FIRST exposure is fairly small (but remember, repetition can increase your chance of selling).
So if you ARE searching for something, you must’ve had a decent number of exposures that would’ve caused you to search for it.
In another words, social media sites are basically doing ALL the work while Google is reaping ALL the harvest.
Your search leads are more likely to convert to your sales message than social media/display leads.
Sure, higher cost traffic but more likely to opt in to your lead generation marketing campaign.
With this higher cost (i.e. your leads are already prepped), you can go immediately to pricing, testimonials, etc. because they are aware of the benefits.. they already have all the basic information.
So with leads that were generated with non-search traffic, the costs will be LESS but you can’t start automatically with the stuff that’s in the LATTER phase of the sales process.
You have to give them the sales schpiel.
You must answer”What’s In It For Me?” and tell your Unique Selling Proposition.
Why? Because they haven’t been exposed to your message frequently enough (and if you’ve lost them, there are ways to get your leads to hear you out again)
You have to know where your leads are coming from: from demand generation or demand fulfillment to really know what sales angle works best.