Much has been made of the argument that Account-Based Marketing (ABM) gained traction so quickly in B2B marketing primarily because traditional, funnel-based demand generation has stopped working. A recent video making the rounds on LinkedIn asked: “Is Demand Generation Losing its Effectiveness?” (The answer provided was: yes.)

The true answer to that question is more complex. Yes, many companies are experiencing lower returns from traditional demand generation. I would also agree that many of these companies could benefit significantly from adding ABM to their overall demand generation strategy. However, it would be wrong to claim that ABM “replaces” demand generation or that the funnel-based approach is outdated.

The main issue with modern demand generation is how it’s being done. I’ve previously pointed out that one of the key reasons for Account-Based Marketing (ABM) and the frustration that sales teams have with marketing’s failure to provide qualified leads is that companies struggle with lead nurturing. Overall, it’s not that demand generation has become ineffective; it’s that it is simply being done badly.

In this context, it’s ironic that ABM is painted as requiring such a disciplined, strategic approach. To be successful, we’re told, ABM requires a deep understanding of one’s target audience (including personas and buying centers), an abundance of personalized, relevant content, and success metrics that align with specific, quantitative goals and even buying stages. All of which is true. And ironic, because if only demand generation were executed with the same discipline, sales wouldn’t be baying quite so loudly for a switch to ABM.

In the last 5-10 years, demand generation has become overwhelmingly technology-driven, and largely tactical. Demand marketers have fallen victim to the siren call of vendors who would have us believe that finding the right buyer, at the right time, with the right need is really just a matter of having the right data or software. Whether it’s intent data or BANT-qualified cost per lead (CPL) programs, demand gen has become a race to the next short cut.

 

If only it were that easy. Marketers have more options, more channels, more technologies at their disposal than ever, but good, effective demand generation will always be more than a series of one-off tactics. For traditional, funnel-based demand generation to be a worthy complement to ABM, certain fundamentals are required: Precise, quantitative goals by which success will be measured

* A solid understanding of the target personas and their pain points
* Relevant content that speaks to those pain points and provides information of value
* A cohesive message and creative platform that extends across all channels
* Critically, a program to filter, qualify, nurture and convert leads to sales-ready prospects

If “demand generation” means no more than a LinkedIn ad and a handful of leads purchased through content syndication, then yes: demand generation will continue to disappoint. Alternatively, if demand generation is afforded the same strategic focus, discipline, and orchestrated approach required of ABM, then it will outperform expectations and continue to be the revenue driver it should be.

Photo by José Martín Ramírez C on Unsplash