The SiriusDecisions Demand Unit Waterfall model, introduced in 2017, is a framework for managing demand generation processes in B2B organizations. It focuses on buying groups, or “Demand Units,” which are defined as a group of individuals involved in a purchasing decision. The model emphasizes the importance of identifying and nurturing these buying groups collectively, leading to better demand qualification and increased close rates.
The Demand Unit Waterfall model consists of several stages, including:
- Target Demand: The potential Demand Units believed to exist for a solution in the market, or the Total Available Market (TAM)
- Active Demand: Demand Units that are showing evidence of acute need or buying intention.
- Engaged Demand: Demand Units that have interacted with the organization’s marketing or sales efforts.
- Qualified Demand: Demand Units that have been qualified by marketing or sales and are considered sales-ready.
- Pipeline: Opportunities created from the Qualified Demand stage.
- Closed/Won: Deals that have been won and closed.
