Demand-led growth happens when an increase in demand for a company’s products or services drives an increase in its revenue and, as a result, its growth. In order for this to happen, the company must be able to meet the increased demand without running into capacity constraints.

There are two main ways that companies can drive demand-led growth: through marketing initiatives that create awareness and generate interest in the company’s products or services, or through pricing strategies that make the company’s offerings more attractive to potential customers.

Demand-led growth is often seen as a more sustainable way to grow a business, since it is not reliant on external factors such as investment capital or government subsidies. Additionally, because it is driven by customer demand, it is less likely to experience the type of sudden declines that can occur when fickle customers move on to the next new thing.

There are a few key things to keep in mind if you want to make demand-led growth work for your business:

1. Make sure you have the capacity to meet any increases in demand. This means having enough raw materials, manufacturing capacity, or service providers on staff to meet the needs of your customers.

2. Focus on marketing initiatives that will create awareness and generate interest in your products or services. Traditional marketing techniques like advertising, public relations, and social media can all be effective in driving demand.

3. Consider pricing strategies that make your offerings more attractive to potential customers. In some cases, offering discounts or lower prices can help increase demand for your products or services.

4. Be prepared to adjust your plans if the demand for your products or services doesn’t materialize as expected. Having a flexible approach will help you make the most of any changes in customer demand.