ABM vs DemandGen - What's the deal?

You can finally put the ABM vs DemandGen discussion to rest

If ABM is the ninja, targeting with a sniper's accuracy

Demand gen is the rockstar, playing to a packed arena

Yes, two completely different approaches

ABM whispers sweetly to the decision-makers

Demand gen shouts from the rooftops to the masses

Does that mean, they should not be used together?

No, actually they're the Batman & Robin your strategy deserves

In this marketing bromance, one does the sniper work, the other rocks the megaphone

Together, they're unstoppable

Before that, let’s look at the actual differences

How are ABM and Demand Gen Different?

ABM: Flip the Funnel

Account-Based Marketing (ABM) adopts a reverse-funnel methodology

It commences by meticulously identifying and targeting specific high-value accounts or companies aligned with the ideal customer profile (ICP). 

Unlike the broad spectrum of demand generation, ABM channels its efforts exclusively toward a select group of key accounts. 

The primary objective is to

• Gain an in-depth understanding of the unique challenges of these accounts
• Craft personalized strategies to effectively engage these accounts
• Convert them into dedicated brand advocates

ABM places paramount importance on

building robust relationships, delivering tailored experiences, and providing exceptional value to the targeted accounts.

Quality vs. Quantity: The Strategic Divergence

I’d like to mention one thing here, ABM unapologetically prioritizes quality over quantity. 

By treating each key account as a distinct "market of one,"

ABM aims to establish

• enduring partnerships,
• maximize customer lifetime value, and 
• cultivate unwavering brand loyalty 

among these high-value customers

Here’s a story of how to use both to your advantage.

Let’s get to the myth-busting

4 Myths about ABM & DemandGen Busted

Myth #1: ABM & DemandGen don’t work well together

This is a common myth, but it is simply not true

ABM & DemandGen are complementary strategies that have to be used together to achieve your marketing & sales goals

We will dig a bit deeper below

Myth #2: ABM is expensive. DemandGen is cheaper

If you’re going after customers that pay you $10k/year, ABM is not expensive

You can close 3-5 additional accounts and the ROI will be positive

On the other hand, if you’re trying to close customers at lower price points

• ABM may not work for you
• It will feel expensive
• We don’t recommend ABM at all (in this case)
• Go implement demand gen (SEO, cold outreach etc)

Enterprises pioneered ABM

But anyone with a $10K ACV and complex sales cycle should start off with ABM

Start with affordable ABM tools and platforms (like Recotap 😁)

Myth #3: DemandGen is only about leads & ABM is not

Lead generation is an important part of demand generation

But it's not everything

Demand generation is also about

• Nurturing leads
• Building relationships with potential customers
• Driving sales

ABM is a bit different.

• You know the accounts you’re going after
• You know the decision makers (buying committee)
• You’re influencing this group

Your approach is obviously going to be different (and with good reason)

Myth #4: ABM is too complex. DemandGen is easy

What you don’t understand, you take it for complex.

ABM is actually very straightforward.

It can feel complex because the approach is a bit different

There are also a number of ABM consultants & agencies that can help you to develop and implement an ABM strategy.

You can connect with me on Linkedin here

The next time you hear someone talk about ABM and demand generation as opposing forces in marketing, remember this email