Our favourite insights from Future Demand by James Hurman.
In today’s competitive business environment, many companies find themselves hitting a wall after the initial success of a product or service launch. Most businesses with a product or service that meets a real unmet need in the market quickly run out of customers (often within 3 years) because they actually fail to meet future demand.
Within this time customer acquisition typically becomes more expensive, their marketing tactics provide a smaller return and they ultimately fail in business.
95% of your market don’t want or need you right now
Within B to B, 95% of businesses are not in the market for most goods and services at any given time. This means existing demand takes up about 5% of the potential market, while 95% are future potential customers.
At any given time there’s a finite amount of existing demand but a much larger amount of future demand for any product or service.
This is why after a certain period performance marketing (social media ads, SEO, affiliate marketing etc) becomes more expensive and less effective.
It’s all in the long game
Future demand can take months or even years to convert into existing demand – particularly for more luxury brands.
Getting customers to become aware of, familiar with and trusting of a brand rarely happens through one campaign or interaction. There needs to be numerous interactions over time.
The secret sauce?
The best marketing formula is to work on generating future demand while capturing existing demand. This way, growth can become sustainable and you essentially create a well-oiled marketing machine.
There are two types of marketing:
1. Capture and convert existing demand – those customers who are in the market currently
2. Create future demand by building your brand with customers who aren’t yet in the market. Make them aware of you and build an emotional connection. This means that when they’re in the market, you’re their first choice.
Invest in brand building to unlock future demand
Brand Building is the creation of familiarity, trust and rapport with people who will need and want what you offer in future. A strong brand is one that stays in the mind of potential customers, and builds true connection, so that when they shift from wanting what you offer in the future, to wanting it now – you’re their first port of call.
Ready to invest in your future demand?
Whether you’re starting a business from the ground up, or want to have an obligation-free assessment of your current brand’s performance, email us to enquire! He***@fo***********.nz ⚡️
