Account Based Marketing vs Demand Generation: Deciding the Right Marketing Strategy for Your Business
As a marketer, I’ve witnessed the evolution of marketing strategies over the years. The marketing landscape has transformed from traditional advertising to digital marketing. In today’s digital age, marketers have various options for reaching their target audience. Two popular strategies that have taken centre stage in recent years are account-based marketing (ABM) and demand generation. In this article, I’ll take you on a journey to explore the Account Based Marketing vs demand generation world and help you decide which strategy is right for your business.
Let’s dive into the world of ABM.
Account Based Marketing (ABM) – The Personal Touch
Picture this – you have a list of your dream clients, the ones you know would be a perfect match for your product or service. Imagine creating a marketing strategy specifically tailored to each of these dream clients. That, my friend, is the essence of account-based marketing. ABM is a targeted, personalized marketing strategy focusing on a specific set of target accounts rather than a broader target audience.
ABM is the perfect strategy for B2B companies that sell high-value products or services to a smaller number of target accounts. ABM aims to develop a deep understanding of each target account and create personalized marketing campaigns that resonate with their specific needs and challenges. It helps build a stronger, more personal relationship with the target account, increasing sales and customer loyalty.
On to demand generation.
Demand Generation – The Broad Strokes
Demand generation, on the other hand, is a broad-based marketing strategy that focuses on creating demand for a product or service by reaching a large audience. Unlike ABM, demand generation is not focused on specific target accounts but on creating interest and demand for a product or service among a larger target audience.
Demand generation is the ideal strategy for B2B companies that sell lower-priced products or services to more target accounts. Demand generation aims to generate leads and build a pipeline of potential customers who can be nurtured into sales. It is typically achieved through inbound and outbound marketing tactics such as content marketing, email marketing, and advertising.
Account Based Marketing vs Demand Generation – Pros and Cons
Now that we’ve explored the basics of ABM and demand generation let’s take a closer look at the pros and cons of each strategy.
Pros of ABM:
- Increased Personalization: With ABM, you can create highly personalized marketing campaigns that resonate with each target account’s needs and challenges.
- Increased Engagement: ABM helps to build stronger, more personal relationships with target accounts, leading to increased engagement and customer loyalty.
- Increased Sales: ABM can increase sales and better conversion rates by creating a more personal relationship with target accounts.
Cons of ABM:
- Limited Reach: ABM is a targeted strategy, so it may have limited reach compared to demand generation.
- Higher Cost: ABM requires a significant investment of time and resources to develop highly personalized marketing campaigns, which can be costly.
Pros of Demand Generation:
- Increased Reach: Demand generation has a much broader reach than ABM, making it ideal for B2B companies that sell lower-priced products or services to larger target accounts.
- Lower Cost: Demand generation is typically less expensive than ABM, as it does not require the same investment in time and resources to develop personalized marketing campaigns.
Cons of Demand Generation:
- Lower Personalization: With demand generation, there is a lower level of personalization, which can result in lower engagement with target accounts and lower conversion rates.
- Lower Engagement: The lack of personalization in demand generation can lead to lower engagement with target accounts, reducing the likelihood of a sale.
Frequently Asked Questions:
What is the difference between Account Based Marketing and demand generation?
ABM is a targeted, personalized marketing strategy that focuses on a specific set of target accounts, while demand generation is a broad-based marketing strategy that focuses on creating demand for a product or service among a larger target audience.
Can I use both ABM and demand generation strategies?
You can use ABM and demand generation strategies to create a well-rounded marketing plan that maximizes your reach and impact.
The Bottom Line: Account Based Marketing vs Demand Generation
So, which strategy is right for your business? The answer to this question depends on several factors, including your target audience, your business goals, and the nature of your product or service.
If you’re a B2B company that sells high-value products or services to a smaller number of target accounts, ABM may be the right strategy for you. On the other hand, if you’re a B2B company that sells lower-priced products or services to a larger number of target accounts, demand generation may be the right strategy.
It’s also worth considering a combination of both ABM and demand generation strategies. Combining both strategies can create a well-rounded marketing plan that maximizes your reach and impact. For example, you may use ABM to target your dream clients and demand generation to generate leads and build a pipeline of potential customers.
*The information this blog provides is for general informational purposes only and is not intended as financial or professional advice. The information may not reflect current developments and may be changed or updated without notice. Any opinions expressed on this blog are the author’s own and do not necessarily reflect the views of the author’s employer or any other organization. You should not act or rely on any information contained in this blog without first seeking the advice of a professional. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained in this blog. The author and affiliated parties assume no liability for any errors or omissions.