August 17, 2023
Account-based marketing (ABM) and lead generation are two powerful strategies for generating revenue and boosting return on investment (ROI). While both approaches have their own unique benefits, it’s important to understand the key differences between them and how they can be used together to achieve optimal results.
Lead generation, the core of demand generation, is a strategy that involves generating a large number of new leads for the sales team by targeting specific markets and industries. This approach is ideal for creating awareness and interest in a product or service, and can be done through various channels such as LinkedIn Campaign Manager. In contrast, account-based marketing (ABM) is a targeted approach that focuses on reaching out to specific named accounts, rather than a broad audience. ABM is designed to engage with the right accounts and create personalized content that captures their attention and drives further engagement.
One key benefit of demand generation is that it brings leads in, at the top of the funnel and nurtures them until they become an opportunity for the sales team. However, as the market becomes saturated, the time, money, and resources needed to generate leads can eventually outweigh the results, leading to diminishing returns. This is where ABM comes in. By focusing on specific named accounts, ABM allows marketers to “land and expand” by targeting bigger fish that match the ideal account profile (IAP). This allows for a more efficient use of resources and a higher return on investment.
While ABM and demand generation may seem like competing strategies, they can actually be used together to achieve optimal results. For example, demand generation can be used to create awareness and interest in a product or service, while ABM can be used to generate qualified leads and sign-up new customers.
This marketing tactic, can start with a broad-based demand generation campaign to create awareness, which will help to identify targeted leads or target market segments, which can then be used to inform a more targeted ABM campaign. An ABM activity can be used to reach out to specific named accounts with personalized content. These combined activities allow marketers to use both strategies to accelerate the buyer’s journey and assist with selling.
It’s also important to note that while ABM and demand generation are both outbound marketing strategies, inbound demand generation is also possible. By using inbound marketing tactics such as content marketing, SEO and other digital marketing strategies, you can drive leads and customers to your website and then use ABM to engage with them.
On LinkedIn, there are two primary types of users. The first group is known as “active users” and they exhibit a high level of engagement on the platform, such as performing searches, interacting with content, and sharing posts. These users also typically stay on top of their inbox and respond to relevant messages. These active users can be effectively targeted through an awareness campaign, followed by account-based marketing efforts.
The second main group of LinkedIn users are referred to as “basic users.” These users tend to have a more limited level of activity on the platform, mostly just scrolling through their feed. They are less likely to respond to private messages. These basic users can be targeted through professional lead generation campaigns that will catch their attention while they are scrolling through their feed, with the use of an appealing message and creative content.
It is important to note that there are other types of users who fall somewhere between active and basic user, and by combining efforts of ABM with lead generation it will help in effectively reaching out to all types of users, with the right format and message.
In conclusion, account-based marketing and lead generation are both powerful strategies for generating revenue and boosting ROI. While they have their own unique benefits, it’s important to understand how they can be used together to achieve optimal results. By using a targeted ABM approach in conjunction with a broad-based demand generation campaign, marketers can achieve their pipeline and revenue goals by capturing the attention of the right accounts and signing up new customers.
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