What is the Demand Waterfall? The Basics of BtoB Marketing
Posted: Wed Dec 04, 2024 7:07 am
When it comes to marketing, you often come across frameworks ( funnels ) for analyzing the purchasing behavior of potential customers . There are actually many different types of funnels , such as the purchase funnel, influence funnel, double funnel, and flyfall .
Of these frameworks, the one that has had the greatest impact on B2B marketing is the "Demand Waterfall" by SiriusDecisions (now Forrester). It can be said to be the standard framework for utilizing marketing automation (MA) and SFA.
The demand waterfall may seem a little more complicated than a typical funnel . In fact, it is a very practical and easy-to-use framework suited to B2B situations (although some say it is outdated, it is good to know about it). In this article, we will introduce the basics of the demand waterfall and how to use it.
What is Demand Waterfall?
Demand waterfall is a framework specialized for B2B marketing proposed by SiriusDecisions, an American company. Its features are that the process is divided into more detail than a general funnel , the relationship between tactics and performance is easier to understand, and it is easy to predict near-future revenue.
Demand waterfall is used by many B2B companies around germany business email list the world for pipeline management from deal creation to closing, revenue forecasting, planning marketing plans and measuring and improving effectiveness after implementation.
SiriusDecisions released the Demand Waterfall in 2006, and then released more evolved models in 2012 and 2017 to keep up with changes in the market environment and customer purchasing behavior. Currently, there are three versions of the model: the 2006 version, the 2012 version, and the 2017 version.
Which of the three models is most appropriate will vary depending on the purpose of the initiative, the industry, the size of the company, the organizational structure (whether or not there is a marketing department, the relationship with sales), etc. Currently, the "Demand Waterfall " model, which was revised in 2012 , is said to be the most widely used model in the world.
Three types of demand waterfalls
Sirius Decision Demand Waterfall Diagram
(Image credit:slideshare )
Background and purpose of the demand waterfall
Demand waterfall is a framework for B2B transactions, and its purpose is demand management (optimization from demand creation to contract conclusion). It is a framework that visualizes and makes easy to understand the structure and process of B2B transactions in order to expand sales and profits in the shortest possible time.
Various funnels existed before the Demand Waterfall , and still exist today, but as Sirius Decisions describes it, they introduced the Demand Waterfall as a definitive framework that brings consistency and integrity to the demand generation process in B2B marketing and sales.
The waterfall, which was announced in 2006, is a simple framework consisting of five processes: "Inquiries" → "Marketing Qualified Leads" → "Sales Accepted Leads" → "Sales Qualified Leads" → "Close/Won business."
It has already become fairly common in Japan, so many people may not even notice it as anything new.
In 2012, the now-standard "Rearchitected Demand Waterfall" was published. The revision of the 2006 edition was due to an increase in the number of companies adopting marketing automation, the rise of inbound marketing, predictive analytics and intent monitoring, and the recognition of the importance of demand generated by the sales department .
This model integrates not only inbound but also outbound (telemarketing activities by the sales department) routes, and specifically visualizes the division of roles (who is active in which phase) between the marketing department, inside sales department, and sales department. It provides an overview of B2B transactions, is very easy to understand, and has been welcomed by B2B companies around the world.
In 2017, SiriusDecisions released the "Demand Unit Waterfall."
In his column, Niwayama of Marketing Symphony Inc. writes about his conversation with Sirius Decisions' research team regarding the reason for the major changes to the 2012 model, which was already a global standard, and it seems that one of the reasons was the influence of ABM (Account-Based Marketing) .
The Demand Unit Waterfall is unique in that it tracks the progress of prospects as units (buying groups of multiple people) rather than as single individuals, and adds persona and interest mapping for buying groups .
To support ABM (Account Based Marketing) , a stage has also been introduced to track the progress in the targeting process (Target Demand and Active Demand stages) before direct contact with units (prospect purchasing groups).
It is a simple framework in which stakeholders (marketing, sales, and inside sales departments) are separated, making it a highly versatile model that can be easily used by companies of any organizational structure and for a variety of initiatives.
Of these frameworks, the one that has had the greatest impact on B2B marketing is the "Demand Waterfall" by SiriusDecisions (now Forrester). It can be said to be the standard framework for utilizing marketing automation (MA) and SFA.
The demand waterfall may seem a little more complicated than a typical funnel . In fact, it is a very practical and easy-to-use framework suited to B2B situations (although some say it is outdated, it is good to know about it). In this article, we will introduce the basics of the demand waterfall and how to use it.
What is Demand Waterfall?
Demand waterfall is a framework specialized for B2B marketing proposed by SiriusDecisions, an American company. Its features are that the process is divided into more detail than a general funnel , the relationship between tactics and performance is easier to understand, and it is easy to predict near-future revenue.
Demand waterfall is used by many B2B companies around germany business email list the world for pipeline management from deal creation to closing, revenue forecasting, planning marketing plans and measuring and improving effectiveness after implementation.
SiriusDecisions released the Demand Waterfall in 2006, and then released more evolved models in 2012 and 2017 to keep up with changes in the market environment and customer purchasing behavior. Currently, there are three versions of the model: the 2006 version, the 2012 version, and the 2017 version.
Which of the three models is most appropriate will vary depending on the purpose of the initiative, the industry, the size of the company, the organizational structure (whether or not there is a marketing department, the relationship with sales), etc. Currently, the "Demand Waterfall " model, which was revised in 2012 , is said to be the most widely used model in the world.
Three types of demand waterfalls
Sirius Decision Demand Waterfall Diagram
(Image credit:slideshare )
Background and purpose of the demand waterfall
Demand waterfall is a framework for B2B transactions, and its purpose is demand management (optimization from demand creation to contract conclusion). It is a framework that visualizes and makes easy to understand the structure and process of B2B transactions in order to expand sales and profits in the shortest possible time.
Various funnels existed before the Demand Waterfall , and still exist today, but as Sirius Decisions describes it, they introduced the Demand Waterfall as a definitive framework that brings consistency and integrity to the demand generation process in B2B marketing and sales.
The waterfall, which was announced in 2006, is a simple framework consisting of five processes: "Inquiries" → "Marketing Qualified Leads" → "Sales Accepted Leads" → "Sales Qualified Leads" → "Close/Won business."
It has already become fairly common in Japan, so many people may not even notice it as anything new.
In 2012, the now-standard "Rearchitected Demand Waterfall" was published. The revision of the 2006 edition was due to an increase in the number of companies adopting marketing automation, the rise of inbound marketing, predictive analytics and intent monitoring, and the recognition of the importance of demand generated by the sales department .
This model integrates not only inbound but also outbound (telemarketing activities by the sales department) routes, and specifically visualizes the division of roles (who is active in which phase) between the marketing department, inside sales department, and sales department. It provides an overview of B2B transactions, is very easy to understand, and has been welcomed by B2B companies around the world.
In 2017, SiriusDecisions released the "Demand Unit Waterfall."
In his column, Niwayama of Marketing Symphony Inc. writes about his conversation with Sirius Decisions' research team regarding the reason for the major changes to the 2012 model, which was already a global standard, and it seems that one of the reasons was the influence of ABM (Account-Based Marketing) .
The Demand Unit Waterfall is unique in that it tracks the progress of prospects as units (buying groups of multiple people) rather than as single individuals, and adds persona and interest mapping for buying groups .
To support ABM (Account Based Marketing) , a stage has also been introduced to track the progress in the targeting process (Target Demand and Active Demand stages) before direct contact with units (prospect purchasing groups).
It is a simple framework in which stakeholders (marketing, sales, and inside sales departments) are separated, making it a highly versatile model that can be easily used by companies of any organizational structure and for a variety of initiatives.