Marketing offers a wide approach, giving ways through which businesses will find room for growing with the right customers and getting many sales.
Two widely preferred methods include Account Based Marketing and Lead Generation, sounding a pretty close to technical vocabulary terms from a marketer.
Theses are actually just about clear approaches to reaching one’s prospective clients.
Let’s have a look at Account Based Marketing vs Lead Generation in this blog.
Account Based Marketing (ABM): What it is?
Imagine you are a business owner, but instead of trying to attract every possible customer, you focus only on a few companies that you know would definitely benefit from your product or service.
That’s Account-Based Marketing in a nutshell-it’s like fishing with a spear rather than a net.
ABM is a very targeted marketing approach where one picks up key accounts, those are actually companies that are a good match to your business, then one crafts personalized marketing campaigns exclusively for them.
One of the significant benefits of Account Based Marketing is its ability to align the marketing and sales efforts for high value target accounts.
Quality rather than quantity it’s like having a relationship, one may have relationships with multiple people, but for this article, there’s that small group that would become that high-value customer.
For instance, if one is selling software for major hospitals, then identify the best hospitals that can benefit much from such a product.
One then crafts the messages and offers, particularly in the direction of these clients. ABM most often happens through close work between marketers and salespersons so the message is not missed; rather, it should connect to the client’s current needs.
Lead Generation: What it is?
Now, let’s have a look at Lead Generation. This strategy is more about casting a wide net to attract as many potential customers as possible.
The goal here is to gather contact information from people who might be interested in your product or service and then nurture them until they’re ready to buy.
For many SaaS businesses, lead generation is the go-to strategy to get the first customer in SaaS as it leverages broad outreach to attract prospects.
This massive party that Lead Generation is hosting calls for invitations to as many people as one can. You are hopeful that not all of them will be interested but most will stick around and be faithful customers.
This process usually involves content: blogging, social media ads, webinars, or any other way which is sure to attract eyeballs.
When a person reaches your content—like downloading a free guide, signing up for a newsletter—is a lead.
For instance, if you are running a business in fitness coaching, you may create a free eBook titled “10 Tips to Get Fit at Home.”
A person who downloads this eBook is likely to be a person interested in fitness and therefore may become a good follow-up lead to sell your services.
Account Based Marketing vs Lead Generation: A Comparison
At first glance, ABM and Lead Generation seem like two sides of the same coin. While both methods are looking to attract customers, they go about it in very different ways.
Target Audience: ABM is targeting a small specific group of high-value accounts; Lead Generation targets a large pool of potential customers.
Approach: ABM is personalized and targeted to one account. Lead Generation is wider, and it aims to attract a bigger crowd.
Collaboration: ABM demands the tight collaboration of the sales and marketing team. Lead Generation is more marketing-oriented.
Time and Effort: ABM takes much more time and effort because it’s personalized towards an account. Lead Generation is faster but not necessarily targeted.
In summary, ABM is like a letter that one writes to a friend. On the other hand, Lead Generation is like sending a mass email to a mailing list. Both have their use depending on your objectives.
Pros and Cons of ABM and Lead Generation:
As it goes with every marketing approach, there are its merits and demerits. Let’s break down the advantages and disadvantages of both ABM and Lead Generation.
ABM Benefits:
Extremely personalized and extremely niche.
Establishes relationships with accounts
Simplifies easy closings of large deals
Aligns the sales and marketing team.
ABM Drawbacks:
Very resource and time-intensive.
Requires extensive knowledge about the account and its requirements.
Doesn’t suit a mass audience.
Benefits of Lead Generation:
Can reach a massive audience in very little time
Easier to scale
Has a constant trickle of people who are interested
More suitable for diversely diversified businesses.
Downsides of Lead Generation:
Less customized, making personalization less possible
Often lures in unqualified leads.
Requires more effort to nurture leads into paying customers.
When to Choose Account Based Marketing?
ABM is a good fit when:
1.Your business sells expensive products or services.
2.You have a clear picture of who your ideal customer is.
3.You have a specific set of target companies or industries.
4.Building long-term relationships is an important goal.
For instance, if you run a B2B enterprise-level software company, the ABM is something tailor-made for you. That lets you target only a handful of those big-ticket accounts that may have the potential to bring you home huge revenues.
When to Choose Lead Generation?
Lead Generation fits the bill when:
1.It is a large business, serving mass audiences.
2.You want to convert a high number of customers.
3.Your products or services have rather low ticket prices.
4.The business requires a continuous generation of fresh leads.
That kind of thing makes sense, as running an online clothing store brings a lot of social media ads, email campaigns, and plenty of other options in front of interested customers in your products.
Will ABM and Lead Generation Work Together?
The good news is that ABM and Lead Generation do not have to be mutually exclusive.
In fact, they complement each other. Most businesses use both strategies in tandem to increase their scope and influence.
Both can be used effectively for the middle stages of the SaaS Demand Generation strategy.
For instance, you will use Lead Generation for that large pool of potential customers then use ABM on most promising ones.
That way you are not putting all the eggs in one basket and balancing quantity and quality at the same time.
Conclusion: Which Approach is right for You?
It depends on what you want to achieve for your business, your target audience, and resources and how well each aligns with your SaaS Sales Funnel objectives.
If you want to build deep relationships with a few high-value customers, you want ABM. If you want large quantities of leads within a very short period, you should opt for Lead Generation.
And above all, remember that there is no one-size-fits-all formula. You can even go on with a combined application where both would fit just for getting the best out of both worlds.
This basic idea is to really get to know your target market, set clear-cut goals and choose which strategy works best to solve business needs.
And through the right approach, surely enough you’ll be on your way to marketing success.
