A Deep Dive into the SiriusDecisions Demand Waterfall
Posted: Sun Aug 10, 2025 8:35 am
The SiriusDecisions Demand Waterfall is a foundational framework for B2B sales and marketing teams. It provides a standardized way to manage and measure the demand generation process, from the initial inquiry to a closed-won deal. By defining clear stages and a common language, the model helps to align marketing and sales efforts, ensuring a more efficient and effective revenue engine. The model has evolved over time to keep pace with changes in how businesses buy, with its most recent iteration focusing on the concept of a "Demand Unit" rather than individual leads.
The Original Demand Waterfall
First introduced in 2002, the original Demand Waterfall Want targeted email leads? Visit our main website: country email list and get started today! was a revolutionary concept for B2B marketing. It laid out a linear path for leads, starting with Inquiry and progressing through Marketing Qualified Lead (MQL), Sales Accepted Lead (SAL), and Sales Qualified Lead (SQL), before finally reaching the Closed/Won stage. This model provided a critical framework for marketers to measure their contribution to the pipeline and for sales to understand the quality of the leads they were receiving. It created a common ground for discussions and set the stage for more advanced lead management practices.
The Rearchitected Waterfall
In 2012, SiriusDecisions "rearchitected" the model to reflect the growing importance of inbound marketing and the rise of teleprospecting. The updated waterfall broke down the marketing qualification stage into more granular steps, including Automation Qualified Leads (AQL), and introduced new lead types such as Teleprospecting Generated Leads (TGL) and Sales Generated Leads (SGL). This version of the waterfall emphasized the need for a dedicated teleprospecting team and a more sophisticated lead scoring system to accurately qualify leads before passing them to sales. It was a significant step toward acknowledging the complexity of the modern B2B buying process.
The Demand Unit Waterfall
Recognizing that B2B purchases are rarely made by a single person, SiriusDecisions introduced the Demand Unit Waterfall in 2017. This latest version shifted the focus from individual leads to a "demand unit," which is defined as a buying group with a specific need. This model aligns with account-based marketing (ABM) strategies by acknowledging that a single account can have multiple demand units with different needs. The stages in this waterfall are: Target Demand, Active Demand, Engaged Demand, Prioritized Demand, and Qualified Demand leading to a pipeline opportunity. This framework encourages a more holistic approach to demand generation, where marketing and sales work together to engage the entire buying committee.
The Importance of Alignment
A core benefit of the SiriusDecisions Demand Waterfall, regardless of its version, is its ability to foster sales and marketing alignment. By establishing a shared language and a clear process, both teams can agree on what constitutes a quality lead at each stage and who is responsible for moving it forward. This collaboration is crucial for a smooth handoff and for accurately measuring the effectiveness of demand generation efforts. The waterfall's diagnostic capabilities allow organizations to identify bottlenecks and conversion issues, enabling them to optimize their processes for better results.
Implementing the Waterfall
Implementing the SiriusDecisions Demand Waterfall is not a simple task; it requires a commitment to a new way of working. Organizations must first define their ideal customer profile and target market, and then align on a common set of definitions for each stage of the waterfall. This often involves updating marketing automation and CRM systems to reflect the new stages and to enable accurate tracking and measurement. Creating service-level agreements (SLAs) between marketing and sales is also essential to ensure that leads are worked in a timely manner. The process also necessitates a collaborative culture where teams are open to testing, learning, and continuously improving their demand generation efforts.
Benefits and Drawbacks
The Demand Waterfall offers numerous benefits, including improved revenue forecasting, better performance measurement, and enhanced accountability across marketing and sales. It provides a structured way to manage the pipeline and identify areas for improvement. However, some critics argue that the waterfall's linear nature doesn't fully capture the complexity of modern buyer behavior, which is often non-linear and multi-touch. Additionally, the model can sometimes lead to an overemphasis on what is easily measurable, potentially devaluing marketing activities, such as brand building, that don't fit neatly into the framework. Nonetheless, the SiriusDecisions Demand Waterfall remains a powerful and widely adopted tool for B2B organizations seeking to build a predictable and scalable demand generation engine.
The Original Demand Waterfall
First introduced in 2002, the original Demand Waterfall Want targeted email leads? Visit our main website: country email list and get started today! was a revolutionary concept for B2B marketing. It laid out a linear path for leads, starting with Inquiry and progressing through Marketing Qualified Lead (MQL), Sales Accepted Lead (SAL), and Sales Qualified Lead (SQL), before finally reaching the Closed/Won stage. This model provided a critical framework for marketers to measure their contribution to the pipeline and for sales to understand the quality of the leads they were receiving. It created a common ground for discussions and set the stage for more advanced lead management practices.
The Rearchitected Waterfall
In 2012, SiriusDecisions "rearchitected" the model to reflect the growing importance of inbound marketing and the rise of teleprospecting. The updated waterfall broke down the marketing qualification stage into more granular steps, including Automation Qualified Leads (AQL), and introduced new lead types such as Teleprospecting Generated Leads (TGL) and Sales Generated Leads (SGL). This version of the waterfall emphasized the need for a dedicated teleprospecting team and a more sophisticated lead scoring system to accurately qualify leads before passing them to sales. It was a significant step toward acknowledging the complexity of the modern B2B buying process.
The Demand Unit Waterfall
Recognizing that B2B purchases are rarely made by a single person, SiriusDecisions introduced the Demand Unit Waterfall in 2017. This latest version shifted the focus from individual leads to a "demand unit," which is defined as a buying group with a specific need. This model aligns with account-based marketing (ABM) strategies by acknowledging that a single account can have multiple demand units with different needs. The stages in this waterfall are: Target Demand, Active Demand, Engaged Demand, Prioritized Demand, and Qualified Demand leading to a pipeline opportunity. This framework encourages a more holistic approach to demand generation, where marketing and sales work together to engage the entire buying committee.
The Importance of Alignment
A core benefit of the SiriusDecisions Demand Waterfall, regardless of its version, is its ability to foster sales and marketing alignment. By establishing a shared language and a clear process, both teams can agree on what constitutes a quality lead at each stage and who is responsible for moving it forward. This collaboration is crucial for a smooth handoff and for accurately measuring the effectiveness of demand generation efforts. The waterfall's diagnostic capabilities allow organizations to identify bottlenecks and conversion issues, enabling them to optimize their processes for better results.
Implementing the Waterfall
Implementing the SiriusDecisions Demand Waterfall is not a simple task; it requires a commitment to a new way of working. Organizations must first define their ideal customer profile and target market, and then align on a common set of definitions for each stage of the waterfall. This often involves updating marketing automation and CRM systems to reflect the new stages and to enable accurate tracking and measurement. Creating service-level agreements (SLAs) between marketing and sales is also essential to ensure that leads are worked in a timely manner. The process also necessitates a collaborative culture where teams are open to testing, learning, and continuously improving their demand generation efforts.
Benefits and Drawbacks
The Demand Waterfall offers numerous benefits, including improved revenue forecasting, better performance measurement, and enhanced accountability across marketing and sales. It provides a structured way to manage the pipeline and identify areas for improvement. However, some critics argue that the waterfall's linear nature doesn't fully capture the complexity of modern buyer behavior, which is often non-linear and multi-touch. Additionally, the model can sometimes lead to an overemphasis on what is easily measurable, potentially devaluing marketing activities, such as brand building, that don't fit neatly into the framework. Nonetheless, the SiriusDecisions Demand Waterfall remains a powerful and widely adopted tool for B2B organizations seeking to build a predictable and scalable demand generation engine.