Are you serious about scaling? Then choosing the right B2B marketing strategy framework is critical. Whether you’re aiming to land high-value clients or generate a steady stream of leads, the approach you take can make or break your results. Two of the most popular frameworks, account-based marketing (ABM) and inbound marketing, offer different pathways to growth depending on your business goals and target audience.
In this article, we break down ABM and inbound marketing, so you can pin down which approach is a better fit for your objectives.
What Is ABM?
Account-based marketing (ABM) is a hyper-targeted marketing strategy that focuses on creating personalized campaigns for specific, high-value accounts. Instead of marketing efforts that cast a wide net and hope to attract the right audience, ABM involves engaging with a select group of prospects who are likely to generate significant revenue or long-term business relationships.
Some features that characterize ABM include:
- Personalized campaigns: Each campaign is customized to the needs, pain points, and goals of individual accounts. This allows your team to create messaging that directly resonates with decision-makers. Instead of sending the same email blast to hundreds of prospects, an ABM strategy might involve creating a unique video presentation that addresses the challenges faced by a specific company.
- Sales and marketing alignment: Both teams closely align and work together to identify target accounts, develop customized strategies, and follow up with personalized outreach. For example, in a branding agency, the marketing team could produce targeted content like case studies or a branding workbook, while the sales team nurtures relationships through account-specific communications.
- Long-term relationships: The focus here is on building deeper, long-lasting relationships with a smaller group of key accounts. These relationships tend to result in higher customer lifetime value (CLV) and increased loyalty. So instead of focusing on closing a single deal, ABM programs aim to build a partnership where you can upsell, cross-sell, and retain clients over many years.
3 Benefits of ABM as a B2B Marketing Strategy Framework
Implementing an ABM strategy offers businesses several key benefits:
- Highly effective for complex sales cycles: If your offering involves multiple decision-makers or longer timelines, ABM helps you engage stakeholders with the right message at the right time. In fact, 76% of marketers say ABM delivers a higher ROI compared to other marketing efforts.
- Increased ROI: Because it’s so targeted, ABM tends to result in a higher return on investment. A recent study found that 87% of marketers using ABM report its returns are better than any other marketing investment.
- Nurturing key decision-makers: By focusing on specific accounts, you can nurture relationships with principle decision-makers, leading to higher conversion rates and larger potential engagements. Companies using ABM see a 171% increase in their average contract value.
What Is Inbound Marketing?
Inbound marketing is a B2B marketing strategy framework that focuses on attracting leads by creating valuable content that draws potential customers in organically. Instead of reaching out to prospects to engage them directly, inbound marketing attracts them to your business through content like blog articles, eBooks, webinars, and social posts.
Inbound marketing typically entails:
- Content-driven lead generation: It’s all about creating content that educates and informs your target audience. The idea is to position your company as a trusted expert so prospects come to you when they’re ready to buy. For example, a B2B manufacturer might publish a blog article about general industry trends, and then offer an in-depth whitepaper download as a call-to-action, which allows them to capture lead contact information in the process.
- SEO, social media, and content marketing: This strategy relies heavily on search engine optimization (SEO) to help your content rank high on search engines. Social media is also instrumental in distributing content and engaging prospects. A simple example is optimizing your blog articles for relevant keywords and then sharing them on LinkedIn to increase visibility among potential clients searching for solutions.
- Wide sales funnel: Inbound marketing typically casts a wider net than ABM, attracting leads across different stages of the buyer’s journey. Once a lead engages with your content, you can nurture them through email marketing or other touchpoints until they’re ready to purchase.
3 Benefits of Inbound Marketing for B2B Companies
Inbound marketing offers several advantages for B2B organizations:
- Scalable strategy: Designed to be scalable, this strategy allows you to attract a broad audience. Whether you’re a startup or an established enterprise, inbound marketing offers long-term lead generation opportunities as your content library and organic traffic grows.
- Cost-effective for long-term results: While inbound marketing requires an upfront investment in content creation, it tends to be more cost-effective over time. Research shows that inbound leads cost 61% less than outbound leads.
- Building authority and trust: By providing educational content that addresses your audience’s pain points, this strategy positions your business as an industry leader. This positioning builds trust and authority, which makes people more likely to choose you when they’re ready to buy.
When to Choose ABM
Account-based marketing is an ideal B2B marketing strategy framework if your business is focused on landing high-value clients or expanding relationships with a small group of key accounts. This approach allows you to dedicate resources to nurturing long-term partnerships and generating significant ROI.
ABM is a great fit for businesses with:
- Smaller target markets: If you’re working in a niche industry, ABM allows you to focus efforts on high-value accounts.
- Complex sales processes: When multiple decision-makers are involved and the sales process is lengthy, ABM ensures you build strong, targeted relationships.
- High customer lifetime value (CLV): If the long-term revenue potential of a single account is high, ABM helps you maximize that relationship.
An example of ABM in action is the cybersecurity firm FireEye. By using personalized account-based strategies, their team was able to focus on high-value Fortune 500 companies, creating customized security solutions for each. Their ABM efforts resulted in a higher average deal size and more upsell opportunities.
When to Choose Inbound Marketing
As a B2B marketing strategy framework, inbound marketing is an excellent fit if your goal is to generate a high volume of leads at the top of the funnel, build brand awareness, or establish thought leadership within your industry.
Inbound marketing works well for businesses aiming for:
- Broad market penetration: If your product or service appeals to a wide audience, inbound marketing will help you generate a steady stream of leads from diverse clients.
- Shorter sales cycles: For businesses that close deals quickly, inbound can nurture leads through the funnel with minimal direct contact.
- Scaling lead generation: This approach allows you to build a content library that attracts leads over time.
HubSpot is a great example of a business using inbound marketing to scale lead generation. By consistently publishing high-quality content on their blog, running webinars, and offering free tools, they’ve been able to attract millions of visitors and convert them into paying customers. Their focus on educating the market has built trust and authority over time.
Can ABM and Inbound Work Together?
Account-based marketing and inbound marketing may be distinct strategies, but they don’t have to be mutually exclusive. Many B2B companies have found that combining these approaches can lead to even greater success.
How can you accomplish this? Use inbound marketing to cast a wide net and attract general interest, then layer in ABM tactics for high-value prospects who show strong buying signals. This combination allows you to scale your lead generation efforts while maintaining a targeted focus on key accounts.
The biggest advantage of integrating ABM and inbound is the flexibility it offers. By aligning both strategies, you can capture leads through inbound efforts and nurture high-potential accounts with ABM, ensuring that no opportunity is missed.
Let’s consider a quick example. A SaaS company might use inbound marketing to attract thousands of visitors to their site. Once a high-value prospect downloads a whitepaper, they could transition them into a personalized ABM campaign, offering tailored content and direct outreach to win their business.
Selecting the Right B2B Marketing Strategy Framework
When it comes to choosing between ABM and inbound marketing, the decision depends on your business goals, target audience, and sales cycle. While ABM works best for businesses targeting high-value accounts and operating in complex sales environments, inbound marketing is ideal for generating a broad volume of leads and scaling your reach.
But remember, the two strategies don’t have to be mutually exclusive. A hybrid approach can help you capture leads at scale while nurturing high-potential prospects more effectively.
Whichever strategy you choose, LeadLander‘s tools can help you track website engagement and optimize your marketing efforts. By understanding who’s visiting your site and how they interact with your content, you’ll be well-equipped to refine your strategy and drive results.