As a B2B marketer, you constantly strive to reach your target audience effectively and efficiently. But with so many approaches, figuring out where to start can take time.
That's why it's essential to understand the critical differences between account-based marketing (ABM) and traditional B2B marketing.
A recent study found that 96% of B2B marketers who tried ABM have seen higher engagement rates than conventional approaches.
On the other hand, another study found that 46% of B2B marketers feel that traditional B2B marketing is the most effective approach.
The choice between account based marketing in B2B and traditional B2B marketing ultimately depends on your goals and target audience.
ABM is a highly targeted and personalized approach focusing on specific accounts, while traditional B2B marketing targets a broader audience with a less customized methodology.
Read More: What Is an ABM List: 10-Step Guide for B2B Marketers.
Let's examine ABM and traditional B2B marketing in more detail to help you determine which approach is right for your promotional framework.
By understanding each approach's key differences and benefits, you can make an informed decision and choose the best strategy for your business.
ABM focuses on specific accounts and tailors its approach to meet its unique needs and goals.
On the other hand, traditional B2B marketing targets a broader audience and takes a mass-market approach.
ABM is highly personalized, using account-specific data to deliver targeted and relevant messages to each account.
Traditional B2B marketing, however, is less customized and focuses more on overall messaging and branding.
ABM is a targeted and strategic approach that maximizes the impact on specific accounts.
In contrast, traditional B2B marketing takes a mass-market approach, reaching a wider audience with less personalization.
ABM measures success through account-specific metrics, such as increased engagement and conversion rates.
Traditional B2B marketing, on the other hand, focuses on overall campaign metrics, such as lead generation and cost per lead.
The Traditional Marketing Vs. ABM Funnel
In ABM, the focus is on specific accounts, and the demand generation process starts with identifying and targeting these accounts.
Instead of starting at the top with broad awareness campaigns, ABM commences at the bottom – concentrating on tailored efforts to engage and convert targeted customers.
The lead funnel in ABM is optimized for each account and designed to drive specific account-based metrics. Throughout the funnel, the emphasis is on delivering highly custom experiences and relevant content to each account.
In contrast, traditional B2B marketing focuses on a wider audience, and the demand generation process starts at the top – focusing on broad awareness promotions.
The lead funnel is optimized for the overall campaign, and success is measured through generic metrics.
Why is B2B account based marketing important? To answer this question, let’s check out its main advantages:
ABM focuses on specific accounts and delivers custom services, driving engagement and relevance. By tailoring your approach to meet each account's unique requirements and aims, you can achieve greater impact and results.
ABM aligns your marketing efforts with the sales team to target and engage specific accounts. This closer collaboration between marketing and sales leads to a more streamlined and effective process, helping to drive better outcomes.
ABM has been shown to deliver a higher return on investment (ROI) compared to traditional B2B marketing. According to research by ITSMA, 87% of marketers who tracked their ROI ranked ABM as their top marketing investment.
This is because ABM focuses on high-value accounts with a higher probability of purchasing, leading to more effective use of marketing resources and a higher ROI.
Here they are…
Traditional B2B marketing targets a broader audience, allowing you to reach more potential customers. This can be beneficial if you want to build brand awareness or generate leads on a larger scale.
Conventional promotional tactics typically have a lower cost per lead (CPL) than ABM. This is because they target a wider audience and don't require the same level of customization as ABM.
Traditional B2B marketing offers more flexibility. You can change your campaign anytime and adjust your approach based on performance. This level of flexibility can be beneficial if you need to respond quickly to market shifts or adapt your strategy based on results.
ABM is a targeted strategy that concentrates marketing efforts on a pre-selected set of target accounts instead of casting a wide net to reach a larger group of potential customers.
This approach is designed to be more customized and precise than traditional marketing methods.
Let's explore a few scenarios in which ABM can be particularly advantageous:
If your business has a small number of key accounts with high potential, ABM can effectively concentrate your marketing efforts on those accounts, thereby increasing the chances of success.
ABM is an effective way to reach and educate your target audience about your business's specialized or complex product/service.
When your sales cycle is drawn out, ABM allows you to build relationships and nurture leads over time.
ABM can also reinforce relationships with existing customers, increasing customer loyalty to your brand.
Here are a few examples of successful ABM campaigns:
Traditional marketing refers to conventional advertising methods that have existed for an extended time.
Examples include television and radio ads, print ads (newspapers and magazines), direct mail, and outdoor ads (billboards).
There are several scenarios where traditional marketing proves helpful:
Traditional marketing channels can be valuable in reaching specific demographics or locations. For instance, if you aim to get an older audience, consider using direct mail or print advertising.
Traditional marketing is a helpful tool for raising brand awareness, especially when paired with digital marketing efforts.
For example, a TV ad can reach a massive audience, leaving a lasting impression, and a social media campaign can help solidify the message and direct traffic to the company's website.
Traditional marketing can enhance digital marketing efforts, such as providing a call to action that redirects consumers to a website or social media page.
Traditional marketing is ideal for reaching specific objectives, such as generating leads or increasing sales. For example, a direct mail campaign can target potential customers with exclusive offers or promotions.
Blending ABM and traditional marketing involves incorporating the targeted focus of ABM with the broader strategies of conventional marketing. The specific approach will vary based on the company's objectives and the accounts being targeted. Integration methods can include:
By integrating ABM and traditional marketing, companies can develop more effective and personal campaigns that generate results and achieve their business objectives.
Related Post: How to Choose a B2B ABM Agency?
ABM concentrates on specific companies or accounts rather than a large audience. It’s a more customized and personal way to approach marketing.
Unlike conventional marketing, which aims to reach a broad group of potential customers with tactics like ads, email campaigns, and events, ABM enables marketers to create messages and campaigns that cater to a selected account's specific needs and preferences.
The collaboration between sales and marketing teams is also different in ABM. In this approach, the teams select key accounts and design campaigns accordingly.
In traditional marketing, however, the sales and marketing teams may have separate goals and methods that are only sometimes aligned.
ABM is also more data-oriented and can be easily measured, enabling marketers to assess their campaigns' effectiveness on specific accounts. This provides valuable feedback and the ability to make adjustments on the go.
In conclusion, ABM is a more personalized and targeted marketing method, ideal for companies looking to establish strong connections with key accounts and increase revenue. Blending ABM with a traditional marketing approach can significantly increase your organization’s growth.
For Further Reading: Advantages of ABM Agency Partners