The Demand Gen Death SpiralWe were recently brought in to do an assessment for a B2B SaaS company, when we looked at their data we quickly realized then were in what I call the "demand gen death spiral." Sounds ominous, doesn’t it? It should—this is a place no company wants to be, yet many end up there.When we recognize this spiral during an assessment, it’s like watching a horror movie where the characters make the choice to go down into the basement. You can see the disaster coming and wonder: why head in this direction?So, what exactly is the demand gen death spiral?The demand gen death spiral happens when companies divert resources from effective strategies to double down on ineffective demand generation tactics. This reallocation causes performance to decline even faster, while marketing teams and agencies cherry-pick positive data points to justify the increased spend. This selective view hides the bigger picture of overall performance decline.Warning Signs You’re in the Demand Gen Death Spiral:- Missing revenue targets- Decline in branded search impressions year over year- Drop in direct traffic year over year- A high percentage of paid search revenue tied to branded search terms- Rising cost per click and overreliance on PMax campaigns- Spending across multiple channels that generates high volumes of low-quality leadsUnfortunately, many B2B SaaS companies are caught in this cycle.How to Escape the Demand Gen Death Spiral:Stop, reassess, and return to marketing fundamentals. Shift your focus to understanding core performance metrics and building a strategy grounded in your brand and true value creation.