Unleash the GROWTH FORMULA
Are you looking for a proven way to grow your B2B business in a competitive and dynamic market? Do you want to learn how to attract, convert, and retain more customers using a simple and effective framework? If so, then this guide is for you.
It’s your practical manual to navigating the intricate paths of business expansion, drawing on two fundamental frameworks: the Demand Pyramid and the Growth Formula.
As we embark on this journey together, you'll gain insights into engaging potential clients, capturing demand, creating awareness, managing and nurturing leads, and fortifying customer relationships.
Explore these concepts and strategies to take your businesses to new heights!
Understanding the Demand Pyramid is crucial for any B2B company aiming for sustained growth. This concept outlines the different stages potential clients go through before making a purchase decision. By comprehending these stages, you can tailor your marketing strategy to effectively engage with your audience. Let's delve into the details:
At its core, the Demand Pyramid represents the journey a potential client takes before becoming an active buyer. The stages, from top to bottom, are as follows:
- Unaware of the problem (30%): This group is not interested in your solution as they are oblivious to the problem.
- Problem aware (30%): Individuals in this stage acknowledge a problem but do not feel an immediate need to purchase a solution.
- Solution aware (30%): This segment recognizes the need for a solution but is not yet prepared to make a purchase.
- Consideration (7%): A small percentage intends to buy and is actively considering options.
- Decision (3%): This is the group of active buyers who are ready to make a decision.
Why it Matters
Understanding the Demand Pyramid is crucial because only a small fraction, 1-3% of the market, is actively buying at any given time. This leaves a vast untapped potential within the remaining 97%. Whether they are aware of their problem or not, this majority represents an opportunity for strategic engagement.
Turning Knowledge into Action
Here are three key strategies to leverage the Demand Pyramid for your business:
- Active Buyers vs. Potential Market:
- Recognize the distinction between active buyers and the broader market.
- Don't solely focus on the 1-3% actively buying; instead, consider the larger untapped potential.
- Educate, Don't Just Sell:
- Shift your strategy from being sales-driven to education-driven.
- Position your brand as the solution that's ready when potential clients are prepared to make a purchase.
- Maximizing Your Market Reach:
- Tailor your approach based on where your audience falls within the pyramid.
- This targeted strategy ensures a more significant impact and sustainable growth.
Understanding the Demand Pyramid provides a roadmap for effective engagement, allowing your B2B business to capitalize on the full spectrum of potential clients.
In the next chapter, we're moving from understanding how people become aware of a problem to developing a comprehensive plan on how to grow your business.
The Growth Formula
Now that you've got a handle on how the Demand Pyramid works, let's talk about something equally important: the Growth Formula.
Think of it like this – if the Demand Pyramid was your roadmap, the Growth Formula is the vehicle that helps you navigate the roads and reach your destination. It's a smart way to make your business not just bigger but also more successful in the long run.
The growth formula framework is simple:
Acquisition + Retention = Growth
This framework consists of four pivotal sections, each tailored to address specific facets of B2B growth:
By embracing the Growth Formula framework, you gain the ability to implement marketing and sales strategies that are both effective and efficient. This isn’t just about growing your B2B business; it’s about doing so faster and smarter.
Now that we’ve grasped the fundamental principles of the Growth Formula, let’s zoom in on each of its critical aspects.
How to capture the existing demand for your products or services and convert those active buyers to customers.
How to increase your visibility and credibility in your target market and generate more interest and buyers for your business
Manage and Nurture Leads
How to manage and nurture your leads and move them along the sales funnel until they become customers.
Manage and Nurture Customers
How to manage and nurture your existing customers and increase their loyalty, satisfaction, and lifetime value.
70% of people conduct their own research online before making any B2B purchasing decisions.
Worldwide Business Research (WBR)
If you find yourself in an established market with existing demand for your products or services, you can capitalize on it by attracting the attention of your in-market buyers. When potential customers are trying to find a solution to their problem, be found for what you have to offer. It’s your job to stay at the top of their minds if you want to capture the existing demand. In such a market, where major players have set buying criteria, educated the industry, and provided solutions well understood by buyers, your priority should be ensuring that you get found when someone actively searches for your product or services before they choose your competitors
In other words, capture the existing demand on intent channels like search engines. This means fixing the bottom of the funnel. Ensure you're reaching all the in-market buyers who are actively in a buying cycle, searching for a product or service that matches your offerings, finding you, and considering you in their decision-making process. This accounts for the 1 to 3% of active in-market buyers who are more likely to convert to customers in a very short time span, as far as sales cycles are concerned.
- Organic Search and SEO
- Paid Search and PPC
- Landing Pages
- Lead Magnets
- Exit Pop-ups
- Industry Directory Listings
42% of sales reps spend more time selling when provided with qualified sales leads.
92% of website visitors leave without converting into a lead.
Reimagining Commerce Report
If you're entering a new market or introducing unique solutions different from what's currently popular, you need to create awareness about your product or solutions through the awareness channel.
This involves understanding the customer journey. While it's not entirely linear, you can generally conclude that the customer starts as unaware, becomes problem-aware, then solution-aware, and finally, brand-aware of you.
Path to Purchase is NOT Linear
To educate the customer, you should know your buyer personas, understand your ideal customer profiles, be familiar with where they gather information and insights and know the type of content they prefer. Once you've grasped these aspects, become a subject matter expert, providing insights and best practices for your customers.
Be so involved in their business world that you understand problems they might not articulate themselves. This way, you educate them to become problem-aware, solution-aware and ultimately brand-aware.
Create valuable and educational content and distribute it on a large scale to reach buyers at different stages of the buyer journey. When done effectively, this creates awareness for your products and services, positioning you as the one setting the buying criteria and leading people to consider your offering above all competing alternatives.
Brand awareness is crucial for B2B businesses because it helps you:
- Stand out from competitors and differentiate your value proposition.
- Build trust and credibility with potential customers and partners.
- Generate more traffic and leads for your website and landing pages.
- Increase conversion and retention rates, reducing customer acquisition costs.
- Enhance customer loyalty and advocacy, generating more referrals and reviews.
- eBooks / Guides
- Social Ads
- Digital PR
- Cold calling
- Cold Emails
- Direct Mail