Here is how I define demand.
I define demand as people wanting your products or service with money to pay for it.
Marketing companies often talk about demand generation. They bundle up a full range of marketing activities under the umbrella of demand generation. The thought process behind it is to create prospects and customers.
Did you start a business to generate demand?
Unless you are a pioneer, you started a business because you have determined that there was a viable demand to build a sustainable business.
Why we should not focus on creating a demand
Demand generation drains our energy. You have to shout louder, jump higher, appear shinier just to get noticed. This drains your energy.
Demand generation takes your focus away from becoming who you are and attracting prospects towards you and your business. Instead, it draws you in to focusing on ‘pushing’ things towards your prospects and customers.
What you should focus on
You should focus on what is already there – the existing demand. Your focus should be on becoming an expert at serving the demand that already exists. In doing so you are expending your energy on what exists now.
How to look at your demand now
- Ask who you serve. Even better ask who you want to serve. Just like a child drawing a picture of a person they love, create a vivid picture of whom you want to serve, within existing demand.
- Ask how many you serve. Can you build a viable business based on local demand? Or do you have to extend beyond local, national and international boundaries?
- Ask how easy it is to reach who you serve. Find out in every detail where they hang out. What magazines do they read, what clubs they frequent, what memberships, and forums do they access? What networking events do they go to? What are their online habits? Where do they take their kids to school?
- Ask who is currently serving their needs. Dig deep in to how they are being served. Are all their needs met? What are they crying out for? What are the price points? What are the service levels? What are the major complains and frustrations in the industry? Who is actually serving them well and why?
- Ask ‘who I want to serve’ demonstrated by their behaviour in the past that they are willing to pay for my offering or similar. If they love what you are offering but not willing to pay what you are asking them to, then you may have to re-examine who you want to serve against your price structure.
It is not easy
This exercise is not easy. It demands a lot of thinking and soul searching as many of the answers need to come from you. Even if it takes 6 months or longer, it is worth doing it as your ‘attractor factor’ multiplies when you gain more and more clarity about the demand, in your market place.
You are ready to build a value bridge now!
If you earnestly complete the ‘how to look at your demand now’ exercise, you should have a detailed picture of what the demand in your market place is telling you. Based on this, you can start to build a ‘value bridge’ to attract, nurture and convert customers.
What is a ‘value bridge’?
Imagine two islands within few miles of each other. One Island is occupied by ‘customers’ and the other by ‘service providers’. The population in the customer island have no boats to go out and look for service providers. They wait for service providers to turn up in their boats and pitch their services. When ‘service providers’ turn up, a pitching frenzy starts. The customers haggle and haggle until they beat the price down and choose by who can offer the best price. This happens every day and most of the service providers are just about getting by. Their profits are low and are struggling to make ends meet.
Except for one service provider – YOU.
You decide to build a bridge between the islands and call it the ‘value bridge’. Some of the daring customers from the customer island decided to use the bridge to come and see what you have to offer. On the way to your business, along the bridge, there are several banners and posters educating them as to the superior value you provide. By the time they get to your business these daring customers have got to know more about you and your business. And more importantly, you have NO competition as they are all involved in a pitching frenzy at the customer island. Some of them happily buy from you. Price is not an issue as both parties see this as a fair exchange. These customers go back and tell others in the ‘customer island’ and more and more people are ‘attracted’ to you and your business.
By carefully crafting and building a ‘value bridge’ you attract all the prospects you will ever need, while your competition become experts on pitching frenzy.
Next Steps
There is no need to go out and do more of what your competition is doing. Instead, focus your energy on building a ‘value bridge’ for your prospects to get to you. Once they get on the bridge, educate and nurture them like no one can! Your success will be guaranteed.
Want help with building a ‘value bridge’ in your business? Please get in touch!
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