Businesses in the world of late are experimenting a lot with strategies that might help them grow and be successful. Changing business landscape means a change in strategies and which is why you might be wondering if it is the right time to go from demand generation to account-based marketing. We are not here to tell you which one is better but we will discuss the key differences between the two strategies and help you find what is right for you.
What is Demand Generation?
Demand generation is a wider concept with a much wider audience as a target. It can be defined as a process of reaching out to as many prospects as possible in order to increase brand awareness among them. In simple words, a general message is sent across multiple channels with an intent to get the attention of leads. Their behavior is then tracked down by the CRM to know their level of interest. The idea is to create a demand for your services or products among your potential customers. The outcome, in this case, is response oriented.
What is Account-Based Marketing?
Account-based marketing (ABM), on the other hand, is a more specific and targeted approach. It is a process where the lead in question is researched and tracked. Profiling is done in order to know their needs and potential and later, they are targeted with customized strategies. In other words, a lead is first qualified and then pursued under ABM. This technique is much less elaborate than demand generation with surely less output quantitatively but the quality is often found to be superior.
- The Sales Cycle
One major difference is that the sales cycle under ABM is much shorter than that in demand generation. In demand generation, marketing and sales work separately. Marketing first qualifies the leads and then send it to sales. However, in ABM, sales and marketing come together to qualify the lead, thereby shortening the sales cycle.
- Reaching Out to the Potential Customers
When it comes to reaching out to the potential customers, ABM gives more personalized touch than demand generation. While demand generation targets the audience collectively without knowing their needs, ABM targets the prospects that are more likely to convert.
- The Content
As ABM is a more personalized approach than demand generation, the content used in both strategies differ. ABM creates personalized messages targeted at specific prospects keeping in mind their requirements. However, in demand generation, the messages are more general and are only aimed at creating general awareness of business services and prospects.
What makes ABM stand out?
- Sales-marketing coordination
This most important factor that many businesses are moving to ABM is that in its sales and marketing work more closely. This not only shortens the sales cycle but also improves the number of sales-qualified leads.
- Deep account profiling
ABM is about researching and giving a personalized touch to the business. This is the reason it relies greatly on deep account profiling to identify the key initiatives and challenges. This allows the marketing team to focus on good personalized content.
- A steady mix of campaigns
Next, ABM relies on a mix of campaigns to achieve results rather than focusing on one particular strategy. It includes offline campaigns, high-end direct mail campaigns, calling, and online promotions. ABM is about using the best of all strategies to achieve the results.
- Customized programs
Lastly, the programs implemented under ABM are more specific and customized. For example, there are account-specific events conducted to target a prospect. Outbound sales are critical to the success of ABM, which is why the efforts are personalized to fit in the customer needs.
Overall, it is true that many businesses are making the shift from demand generation to ABM for good but that is not a good thing for all businesses. Depending on the business size, demographics, services, and customer base, the shift can prove to be beneficial or not. For more insights, get in touch with our skilled team at MarkSpace Media.