The current state of B2B demand generation

2 April 2024
3 min read

The Current State

In the fast-paced B2B tech startup landscape, scaling sales is a constant challenge. Despite having a great product and team, achieving meaningful growth remains elusive. Why? Many companies rely on a flawed approach to demand generation that values quantity over quality.

Most B2B firms cast a wide net, hoping to catch a few interested prospects. This "spray and pray" tactic mirrors Chet Holmes' buyer pyramid, where only a small fraction actively seeks solutions, leaving the majority disinterested.

Chet Holmes' Buyer Pyramid

The Consequences

The consequences of this approach are far-reaching, particularly for B2B tech founders:

  • Burning Through Cash: Every unqualified lead nurtured is a drain on resources, impacting runway and hindering investment in growth channels.
  • Stalled Sales Cycles: Sales reps become bogged down with unqualified leads, diverting attention from high-intent prospects ready to close deals.
  • Demo Fatigue: Bombarding prospects with generic demos leads to fatigue and missed opportunities to address specific needs.
  • Founder Frustration: The pressure to meet sales targets coupled with stagnant progress can be demoralising for founders striving for growth.

Beyond the immediate challenges, persisting with an inefficient demand gen strategy poses long-term risks:

  • Building Brand Authority: Diluting the message with unqualified leads weakens brand authority in a crowded marketplace.
  • Developing Product-Market Fit: Chasing the wrong prospects hinders insights that inform product development and true market fit.
  • Scaling Efficiency: A leaky demand gen funnel becomes a bottleneck to scaling efficiently, hampering growth potential.

A Brighter Future...

The solution? Prioritise high-intent prospects.

By concentrating on prospects who both demonstrate a problem you can solve , and are actively seeking a solution, you can lower your customer acquisition cost and increase the ROI from your sales and marketing efforts.

Want understand how B2B founders like you are doing this? Click here to have a 30-minute discussion with our specialist.