Business-to-business (B2B) marketing often requires a nuanced approach. Different strategies can be leveraged to capture attention, generate leads, and ultimately convert those leads into customers. Two powerful strategies are Account-Based Marketing (ABM) and Demand Generation. While they each serve unique purposes, a hybrid strategy can often give businesses the edge they need.
Account Based Marketing Strategy
Account Based Marketing (ABM) strategy is a focused approach that concentrates on individual client accounts rather than a wide market audience. It is about treating each account as a market of one, designing personalized marketing strategies to engage each target account with content that addresses their specific needs, interests, and challenges.
- Personalized Content: Creating customized content such as whitepapers, case studies, or solution guides that directly address the needs of the target account.
- Targeted Outreach: Using personalized emails or direct messaging to engage key decision-makers within the account.
- Custom Events or Webinars: Hosting exclusive, invitation-only events or webinars for key stakeholders of a target account.
- Social Selling: Utilizing platforms like LinkedIn to engage directly with individuals within the target account, sharing insights, and starting conversations.
- Tailored Advertising: Using targeted ads to reach specific individuals or departments within the target account.
Demand Generation Strategy
A Demand Generation strategy is a broader approach aimed at creating awareness and interest in a company's products or services across a wide market audience. It revolves around the use of various marketing strategies to engage potential customers, educate them about the company's offerings, and ultimately nurture them towards making a purchase.
A demand generation strategy might involve:
- Content Marketing: Creating blog posts, ebooks, infographics, or videos to attract and engage a wide audience.
- Social Media Promotion: Using platforms like LinkedIn, Twitter, or Facebook to share content, engage with followers, and increase brand awareness.
- Email Marketing: Sending newsletters, promotional emails, or educational content to a broad list of potential leads.
- SEO and PPC: Optimizing website content for search engines and using pay-per-click advertising to attract potential customers.
- Webinars or Online Conferences: Hosting educational or informational events to engage a broad audience and generate leads.
- Lead Nurturing: Using automated email sequences or retargeting campaigns to nurture leads towards making a purchase.
Now that we understand ABM and Demand Generation, let's delve into their differences along with how, when and why to use each strategy.
Account Based Marketing vs. Demand Generation: Key Differences
- Focus: ABM is a targeted strategy that focuses on specific high-value accounts. Demand Generation, however, is a broader strategy that aims to create awareness and interest among a large audience.
- Approach: The approach to ABM is more personalized, tailoring content and campaigns to the specific needs of an account. Demand Generation uses a more general approach, creating content and campaigns that appeal to a wide audience.
- ROI: With ABM, it's easier to directly attribute revenue to specific campaigns, making the ROI clear. With Demand Generation, the path to revenue is more indirect, making the ROI harder to measure.
- Sales Alignment: ABM requires close alignment between sales and marketing teams. Demand Generation may require less coordination, as the focus is on attracting and nurturing a large number of leads.
- Content Strategy: ABM requires personalized content for each target account, while Demand Generation uses a more general content strategy to attract and nurture leads.
Metrics for Account Based Marketing vs Demand Generation
- Engagement Score: Measures how engaged a target account is with your content and campaigns.
- Pipeline Contribution: Shows how much revenue can be attributed to ABM campaigns.
- Conversion Rate: Shows the percentage of target accounts that have become customers.
Metrics for Demand Generation include:
- Number of Leads: This is the total number of leads generated by demand gen campaigns.
- Cost per Lead: This shows the cost of acquiring a lead through demand gen activities.
- Lead Conversion Rate: This measures the percentage of leads that are converted into customers.
- Sales Cycle Length: Measures the time it takes for a lead to progress from initial contact to sale.
Choosing Between ABM and Demand Generation
The choice between ABM and Demand Generation largely depends on your business model, target audience, and marketing goals.
If your product or service is high-value and aimed at a small, specific audience, ABM might be the best approach. It allows for a highly targeted, personalized approach that can lead to high conversion rates.
On the other hand, if your product or service appeals to a broad audience, Demand Generation may be more effective. This approach can help you reach a large number of potential customers and raise brand awareness.
However, it's important to note that these strategies aren't mutually exclusive. Many businesses use a combination of both ABM and Demand Generation, depending on their goals and the nature of their market.
Implementing a Hybrid Strategy
A hybrid strategy that combines elements of both ABM and Demand Generation can be highly effective, as it allows you to maintain a broad reach while also targeting specific, high-value accounts.
For instance, you might use Demand Generation tactics, such as content marketing and social media, to generate broad awareness of your product or service. At the same time, you could use ABM tactics to target specific accounts with personalized content and campaigns.
This approach allows you to maximize your marketing efforts, reaching a wide audience while also focusing on high-value accounts that are most likely to convert.
Ultimately, the choice between ABM, Demand Generation, or a hybrid strategy will depend on your specific business needs and goals. By understanding the strengths and weaknesses of each approach, you can make an informed decision that will best serve your business.
Here are a few examples of how combining ABM and Demand Generation might work in practice:
- Content Marketing: This is a key tactic in Demand Generation, aimed at creating valuable, engaging content that attracts a broad audience. You might write blog posts, create infographics, or host webinars on topics relevant to your industry. At the same time, you can create more personalized, account-specific content for your key target accounts. This could include case studies, white papers, or personalized demos that speak directly to the needs and challenges of these specific accounts.
- Email Marketing: Email can also be used in both a broad and targeted way. For Demand Generation, you might send out a monthly newsletter to all your leads, providing them with useful content and keeping your brand top of mind. For ABM, you could send personalized emails to key decision-makers at your target accounts, addressing their specific needs and offering tailored solutions.
- Social Media: Social media platforms can be used to reach a wide audience (Demand Generation) and to engage with specific accounts (ABM). You might use LinkedIn, for example, to share industry news and insights, engage with followers, and increase brand awareness. At the same time, you can use LinkedIn's advanced targeting features to deliver personalized ads or messages to individuals at your target accounts.
- Events: Events can be a great way to engage both broad audiences and specific accounts. You might host a webinar or online conference to attract a wide range of potential customers. Meanwhile, you can also host exclusive, invitation-only events for your key target accounts, providing them with a more personalized, engaging experience.
- Retargeting Campaigns: You can use retargeting to remind visitors of your brand after they leave your website, aiming to bring them back when they're ready to buy. This is a broad Demand Generation strategy. Within the same retargeting framework, you can segment visitors from high-value accounts and target them with personalized ads based on their interests and interactions with your website, exercising an ABM approach.
The goal of combining ABM and Demand Generation is to leverage the strengths of both strategies: the wide reach of Demand Generation and the personalized approach of ABM. By using these strategies in tandem, you can maximize your marketing efforts and effectively engage with both broad audiences and key target accounts.
Avoiding Weaknesses
While ABM and Demand Generation both have their strengths, they each come with their own set of challenges. Understanding these potential pitfalls can help you avoid them and optimize your marketing strategy.
Avoiding Weaknesses in Account-Based Marketing (ABM)
- Targeting the wrong accounts: If you target accounts that are unlikely to convert or don't have significant potential value, your ABM efforts will not yield much return. So, invest time and resources into identifying the right accounts based on factors such as market influence, strategic importance, revenue potential, and likelihood of conversion.
- Lack of personalization: ABM requires a high level of personalization, and failure to deliver this can lead to ineffective campaigns. Use detailed account insights and research to create highly personalized content and messaging.
- Poor sales and marketing alignment: ABM requires close collaboration between sales and marketing teams. Ensure both teams are aligned on goals, strategies, and messaging to effectively engage target accounts.
Avoiding Weaknesses in Demand Generation
- Lack of quality leads: While Demand Generation can bring in a large quantity of leads, not all of them may be quality leads. Use effective lead scoring and qualification processes to ensure you're focusing on high-quality leads that are more likely to convert.
- Neglecting lead nurturing: Not all leads generated will be ready to buy immediately. Implement a solid lead nurturing strategy to guide these potential customers through the sales funnel until they are ready to make a purchase.
- Ineffective content: If your content doesn't resonate with your audience or fails to provide value, it won't generate demand. Regularly analyze your content performance and audience engagement to refine your content strategy.
By understanding these potential weaknesses, you can ensure your ABM and Demand Generation strategies are as effective as possible, maximizing your marketing ROI.
What Strategy Would You Choose?
In the end, the choice between ABM and Demand Generation isn't a binary one. Many businesses use a combination of both strategies, depending on their goals and the nature of their market.
By understanding the strengths and weaknesses of each approach, you can make an informed decision about which strategy (or mix of strategies) is right for your business.
