Have you found yourself gravitating towards demand-gen tactics or leaning more towards account-based marketing principles? Ever pondered which of these is the optimal strategy for your business?
The truth is, demand generation and account-based marketing aren’t rivals. Think of them more as allies. While each boasts unique strategies and perspectives, their shared goal is clear: driving pipeline and revenue growth.
In reality, the most astute marketers don’t pick sides. They merge the strengths of both into a powerful hybrid approach.
Join us as we delve into how you can seamlessly integrate both demand gen and account-based marketing to supercharge your revenue engine.
The Beginning
Embarking on a hybrid approach? Start by taking a bird’s-eye view of your growth plans. Before diving into a blended marketing program, there are key considerations to keep in mind:
– The scope and character of your Total Addressable Market (TAM).
– Where your company currently stands in its lifecycle.
– The strength of your brand awareness.
Understanding these elements will shape how much time, effort, and resources you’ll pour into your hybrid marketing blueprint.
Now, let’s break down each of these elements. They’ll serve as your compass, helping you pinpoint where to allocate your efforts and budget throughout your demand gen initiatives.
1. Evaluate and Segment Your TAM
Your Total Addressable Market (TAM) isn’t just a number. It’s a map that reveals where your product fits amidst fierce competition. More than that, it guides the effort and funds required for a blended marketing strategy.
Instead of setting goals based on customer counts, focus on revenue targets. Why? Because revenue speaks louder.
However, be mindful of your TAM’s size. Sure, chasing a vast TAM promises more revenue, but it’s pointless if you can’t handle the volume. It’s like trying to fill a cup from a waterfall.
In essence, pinpointing and pursuing the right TAM is your ticket to ensuring your hybrid approach hits the mark and truly thrives.
2. Understand Your Organization’s Life Cycle Stage
Where does your organization currently stand on its journey?
Are you laying down the groundwork, striving to build brand recognition and nail the perfect product-market fit? Or are you pivoting, aiming to efficiently expand your market share and boost profitability?
Every organization progresses through distinct phases: startup, growth, maturity, and either renewal or decline. Recognizing your current stage is paramount. It directly influences the planning and operational tweaks necessary for a successful hybrid strategy.
3. Degree of Brand Awareness
A solid brand awareness isn’t just a nice-to-have—it’s the foundation of building meaningful brand equity. It’s your foot in the door, the initial step in making your way into a buyer’s circle of consideration. Once you’ve secured that awareness, the next stages—cultivating brand preference and loyalty—become achievable.
Take a candid look at where your brand stands in terms of recognition within your target market. Use this insight to tailor your hybrid approach effectively.
Blending Demand Gen and ABM
Demand gen is all about casting a wide net to capture leads at the top of the funnel, nurturing them into potential opportunities. While effective, this approach has its downsides: it demands significant resources and risks exhausting the market over time.
Enter the blended strategy: a sweet spot for many savvy marketers.
Continue leveraging the demand gen channels that work for you, funneling in fresh leads. However, once they’re in, pivot to an account-based marketing (ABM) strategy for leads fitting your Ideal Customer Profile (ICP).
Starting a Blended Strategy
1.Understand your revenue objectives.
2. Recognize the necessary pipeline and conversion rates.
You can utilize a 1:1 or 1:Few ABM approach targeting existing clients and pair it with a 1:Many demand gen technique to amplify brand recognition.
If you’re targeting small to mid-sized businesses, broad demand gen has an edge—it’s easier to net these entities at the funnel’s top. In contrast, large enterprises, with their lengthy buying cycles and sizable committees, demand a precise 1:1 ABM approach.
Why Demand Gen?
– It caters to prospects within key segments of your TAM.
– Educates and engages your target audience about your product and its unique selling points.
– Acts as a buffer around your ABM initiatives.
– Identifies fresh or budding market avenues.
Why ABM?
– Prioritizes high-worth accounts with increased success chances.
– Offers a tailor-made experience for vital buyers in target accounts.
– Enhances cohesion among sales, marketing, and customer service teams.
– Speeds up your sales pipeline.
Remember, if you’re entering a new market, Demand Gen shines brightest. ABM might falter with accounts you’ve never sealed deals with. Hence, employ ABM to augment revenue and widen the pipeline once organic demand dries up.
In essence, the need for Demand Gen remains timeless—there’s always room at the funnel’s top for new leads.
Keys to Succeeding with a Hybrid Approach
1. Dive Deep into Revenue Goals
Segment your revenue aspirations into three categories: acquisition, retention, and expansion. Determine the account types and sizes necessary within each category to meet these goals. This approach ensures your go-to-market strategies are in sync, fostering harmony within your growth team.
2. View Through Your Customers’ Eyes
Perceive your business and offerings as your customers do. Identify commonalities among them to set pertinent objectives, and grasp their habits and purchasing tendencies. Harness customer management tools and audience insights for this purpose. Regularly connect with customer-facing teams or even engage directly with customers to gather more insights.
3. Collaboratively Craft Your Ideal Customer Profile (ICP)
While marketing takes the lead, it’s vital to rope in sales, service, and leadership. Examine various segments of your target clientele to sculpt your ICP. Lean on concrete data, highlighting customers’ purchasing routes, their aims, and requirements. Don’t base decisions purely on gut feelings. Consider using specialized tools to validate your ICP choices.
4. Embrace Authentic Teamwork
Synchronization on sales strategies and customer acquisition tactics is crucial. Such alignments determine the resources and funds to be allocated. But remember, marketing can’t shoulder this alone. Thriving campaigns need genuine backing and ongoing participation from leaders, sales development reps, account managers, and both the marketing and sales departments.
Empower Your Hybrid Strategy with These Five Core Elements
1. Content
Content isn’t just about creation; it’s about alignment. Every content piece should resonate with your Ideal Customer Profile (ICP) and align with their goals, reinforcing your commitment to helping them. Avoid treating content in isolation; integrate it seamlessly into your overarching strategy.
2. Channels
Relying solely on a single communication mode is outdated. Today’s marketing demands a multifaceted approach:
– Embrace online engagements, personalizations, sales touches, and direct mails.
– Incorporate AI chatbots to enhance customer interactions with timely, tailored messages.
– Leverage paid media targeting specific audiences, ensuring messages are tailored to each strategy (1:1, 1:Few, 1:Many).
3. Account, Lead Data, and Intent Data
The management of leads and accounts should mirror your marketing approach, be it broad brand awareness or specific strategies like 1:Many, 1:Few, or 1:One. Broadly, teams might employ demand generation to cast a wide net. Once a target account or a significant non-TAL account emerges, the lead transitions to an Account-Based Marketing focus. While intent data is invaluable, use it as a compass to guide, not dictate, your marketing endeavors.
4. Lead/Account Management, Scoring, and Tracking
The progression from broad brand strategies to specific ones should see data’s importance intensify from “critical” to “indispensable.” Precise data can either propel or hamper your outreach and engagement efforts. Invest wisely: while purchasing data for every contact within your Total Addressable Market (TAM) may be prohibitive, it’s paramount for a Sales Accepted Account (SAL) to encompass the complete buying group.
5. Reporting and Analytics
Selecting the right metrics hinges on your set objectives. In Account-Based Marketing, indicators might include visits to pricing pages or pricing/demo requests. Conversely, Demand Generation might emphasize Marketing Qualified Leads (MQLs).
In Conclusion
Embracing both Demand Generation and Account-Based Marketing is no longer a mere choice for ambitious businesses—it’s a necessity. As the marketing landscape evolves, so must our strategies. By integrating the two, businesses can harness the strengths of each, maximizing reach and relevance. As you set out to sculpt your hybrid approach, remember to prioritize alignment in content, leverage diverse channels, harness data wisely, and lean into analytics to guide your journey. It’s about striking the right balance, staying agile, and keeping your customers at the heart of your operations. With the right tools and mindset, blending Demand Gen and ABM can truly propel your business to new heights. Dive in, iterate, and watch your revenue engine soar.
