Mastering Account-Based Marketing in Japan

Japan is a unique country with a culture deeply rooted in tradition. Their business culture in particular places emphasis on long-term relationships and high expectations for quality and precision. As such, entering into or expanding in the Japanese market requires more nuance and knowledge than many international companies are prepared for. A high attention to detail and an intimate understanding of Japanese culture and consumers is tantamount to successfully navigating Japan’s hyperspecific B2B marketing landscape. 

For deploying successful campaigns in the Japanese market, Account-Based Marketing (ABM), can be your greatest asset. ABM is a B2B marketing strategy that focuses on creating highly personalized campaigns for specific accounts (i.e., companies), rather than casting a broad net to attract a large volume of leads. This means that ABM campaigns have a higher ability to address more specific needs and challenges of their target accounts, ultimately leading to deeper relationships and higher conversion rates. This strategy aligns seamlessly with Japanese business standards that prioritize long-term loyalty and ultra-specific solutions.

In this article, we will outline how international businesses need to demonstrate both commitment and cultural sensitivity in order to successfully deploy this key B2B marketing strategy in Japan. We’ll cover the strategy basics, the challenges unique to the Japanese market and share Custom Media’s own best practices for maximizing ABM success.

The Three Tiers of ABM 

As stated before, ABM is a targeted B2B marketing strategy that focuses on identifying and prioritizing specific accounts with the goal of creating highly personalized marketing campaigns. Unlike traditional marketing, which casts a wider net, ABM is more focused, precise and aligned with sales efforts, ensuring that marketing resources are used efficiently and effectively.

The core idea behind ABM is to create tailored campaigns that directly address the specific needs and areas of interest of targeted accounts, helping to build stronger relationships that eventually lead to higher conversion rates and long-term partnerships. This approach can be particularly effective in the Japanese market, where long-term relationships are highly valued.

ABM can be categorized into three main tiers, each offering varying degrees of personalization and scalability:

1. Strategic ABM (One-to-One): In this model, marketers focus on a small number of high-value accounts, creating deeply personalized campaigns designed specifically for each account. This approach is resource-intensive but offers a high return on investment for companies targeting large, high-stakes clients.
2. ABM Lite (One-to-Few): ABM Lite targets a larger number of accounts compared to Strategic ABM, but the personalization is somewhat less detailed. Instead of focusing on individual companies, ABM Lite typically involves campaigns that are tailored to specific industry sectors or account clusters with similar needs.
3. Programmatic ABM (One-to-Many): Programmatic ABM leverages technology and automation to deliver personalized content at scale to a large number of accounts. This model relies heavily on data analytics to ensure the right messaging reaches the right audience, but sacrifices some of the deep personalization that is cultivated in the previous tiers.

Each tier serves different purposes depending on the size of the target accounts and the goals of the campaign. Typically ABM relies on a close alignment between sales and marketing teams at the initial stages. It is crucial that both sales and marketing teams are on the same page about who these accounts are, what messaging should be delivered to them and which specific ABM strategy should be deployed. 

A Step-by-Step Look at ABM

At Custom Media we regularly work with our clients to develop ABM campaigns, working diligently to identify high-value accounts to target with what CEO Robert Heldt calls a “laser-focused lifecycle marketing strategy.” A one-size-fits-all marketing technique will become increasingly difficult to adapt successfully, especially as AI gains traction in the B2B marketing landscape. In order to beat the competition and target your messaging efficiently and effectively, your ABM strategy should follow these key steps:

1. Identify the Key Accounts and Areas of Interest: This first stage will require closely aligning sales and marketing teams to identify the accounts your campaign will target. Create a list of key accounts that align with your campaign goals, ideally focusing your efforts on industries or specific accounts that would be most receptive to your content. Once you’ve established your list of target accounts, you need to understand them. Research the needs and interests of these accounts using data to tailor your approach. 
2. Create Personalized Content: Once you’ve identified your target accounts and their areas of interest, it’s time to create the content. White papers, case studies and any industry-specific materials that speak to your target accounts on a highly specific, personalized level need to be drafted and designed. You can even use digital tools, such as Google Search Console, to help you refine your content and cover all your bases.
3. Engage Across Multiple Marketing Channels: Once you’ve created your personalized content, you need to make sure target accounts and key decision-makers actually see it. Leverage tools such as HubSpot to segment and target specific accounts, and organize email campaigns, social media, and in-person events to engage your audience and capture their niche areas of interest.
4. Monitor and Refine: After content delivery, monitor visitor engagement and interactions using CRM tools and databases like HubSpot. Analyze your engagement levels and optimize accordingly, adjusting your content strategy and shifting focus when needed to areas with higher engagement. Develop even more personalized and specific content based on where you see the most interest, and continue to promote it via email marketing, paid ads and social media to increase visibility. Regularly reviewing your campaign performance will ensure you stay ahead of the curve and top of mind. 

Challenges in Applying ABM in Japan

In Japan, business decisions are deeply rooted in a consensus-driven approach. ABM’s focus on building alignment and collaboration across stakeholders complements this cultural framework, making it an ideal strategy for the Japanese market.

Robert Heldt, CEO, Custom Media

ABM strategies can be particularly effective in the Japanese market, but if you lack an understanding of the nuances within the Japanese market, you run the risk of exerting extra effort with minimal effect. In order to successfully deploy ABM strategies in Japan, it’s important to be aware of the challenges present in the Japanese market.

In Japan, business relationships are built on a foundation of trust, which can take much longer than international companies may be used to. One of the most significant challenges international companies face when implementing ABM in Japan is adjusting to the extended timeline required to build trust and establish relationships. Unlike in Western markets, where a well-targeted ABM campaign can lead to quicker conversions, Japanese businesses tend to be more conservative. Multiple touchpoints and demonstrations of reliability are often necessary before a Japanese company feels comfortable enough to engage in business. As such, it is important to budget for a longer sales cycle, and be prepared to invest in relationship-building workshops in order to establish your company as a reliable partner.

This goes hand-in-hand with understanding and respecting Japanese business culture, which in addition to longer sales cycles, also includes the importance of in-person meetings. Japanese businesses place a strong emphasis on face-to-face communication, especially in the B2B marketing landscape. Although digital communication tools have become more common, in-person meetings are still critical to building trust and demonstrating commitment. ABM strategies in Japan should include opportunities for personal engagements, such as events, seminars or presentations for key accounts. And don’t forget your meishi (Japanese business card)! 

Additionally, privacy is a significant concern in Japan, and this heavily influences how data is collected, stored and used in marketing campaigns. This somewhat differs from the West, where privacy is not as rigorously monitored. Japanese businesses are often wary of sharing sensitive information. This poses certain challenges for ABM, where data-driven insights are crucial for personalizing campaigns. It’s important to navigate Japan’s privacy laws carefully and focus efforts on using local data collection tools that comply with these regulations. 

With this in mind, integrating local tools and technologies is incredibly important when deploying ABM in Japan. Japan has its own set of preferred business tools and systems, and integrating these with global ABM platforms can be a complicated process. For example, while HubSpot might be effective for tracking engagement and managing campaigns in many other markets, integrating this platform with Japanese tools requires careful planning and thorough organization. Japanese businesses prefer working with local tools that cater to their specific business practices, such as tools that analyze and organize meishi information into the Cloud. This can be useful for ABM, but it requires taking the time to understand the specific tools and how to properly link them to advertising campaigns.

Outside of Japan, LinkedIn is central to ABM strategies. But Japanese professionals prefer working with local platforms and softwares.

Ignacio Davalos, Digital Marketing Director, Custom Media

Another example is LinkedIn. Outside of Japan, LinkedIn is an integral part of professional networking and lead generation. In Japan, however, Japanese professionals tend to favor local platforms and more personal, offline connections. LinkedIn is not as commonly used, meaning that it has limited reach in Japan. Furthermore, given Japan’s preference for local brands, international companies may find it challenging to penetrate the market. This can be particularly challenging when trying to introduce new technologies or marketing approaches that are not yet widely adopted in Japan. Consider familiarizing yourself with local digital platforms, such as LINE, Japan’s largest social network that is used by more than 70% of the population.

Opportunities for ABM in Japan

Despite these challenges, certain industries in Japan are particularly receptive to ABM. Ignacio Davalos, Custom Media’s Digital Marketing Director, identified three key industries that present ample opportunities for ABM strategies. These industries have characteristics that align well with the principles of ABM, making them ideal candidates for targeted, personalized campaigns. 

1. Software and Technology: The software industry, particularly companies focused on artificial intelligence (AI) and cybersecurity, is highly receptive to ABM in Japan. The rapid growth of these sectors–especially in AI–combined with the intense competition, makes personalized marketing essential for standing out. Companies that specialize in cybersecurity are particularly strong candidates for ABM, considering how important privacy and data protection are in Japan. For example, Custom Media has successfully employed ABM strategies for clients in the AI and cybersecurity sectors, generating white papers and case studies that showcase how their services address key industry challenges. Creating content that is relevant to these high-growth industries helps build trust with potential clients, which, as we’ve covered, is incredibly important in the Japanese market. 
2. Hospitality and Tourism: With the post-COVID 19 tourism boom, the hospitality industry in Japan is seeing a surge in demand for personalized marketing. Luxury hotels are sprouting up all over the country in response to increased inbound tourism, and adopting ABM strategies to target high-level international and domestic clients will be crucial for maintaining a competitive advantage. By tailoring marketing efforts to target the specific preferences of affluent travelers, such as exclusive experiences or unique amenities, luxury hotels can drive higher occupancy rates and foster long-term loyalty. ABM strategies in this sector often involve highly targeted content, such as customized travel guides, personalized offers and exclusive invitations to events, all designed to appeal to the specific interests of high-net-worth individuals. This personalized approach not only helps hotels differentiate themselves in a crowded market but also contributes to building a strong brand reputation.
3. Fintech: The fintech sector in Japan is growing rapidly, with many new companies entering the market. ABM offers fintech businesses a way to differentiate themselves and build strong relationships with potential clients. Given the complexities of the financial landscape, personalized campaigns that address specific client concerns, such as regulatory compliance or data security, can help fintech companies establish credibility and trust. In a market where trust is tantamount, ABM strategies that focus on educating potential clients through white papers, webinars and case studies are particularly effective. By positioning themselves as thought leaders and providing valuable insights, fintech companies can create meaningful connections with their target accounts, establish credibility and drive long-term growth.

Evaluating ROI Both Abroad and in Japan

According to a research conducted by the ABM Leadership Alliance and ITSMA, 76% of marketers saw higher return of investment (ROI) with ABM than with any other marketing strategy. Part of evaluating ROI for ABM involves continuously monitoring and refining your content for maximum engagement.

As we previously outlined, the Japanese market presents an array of challenges for international companies seeking to use ABM strategies. In Japan, evaluating ROI for ABM campaigns can be complex due to unique market conditions and cultural nuances. For instance, longer sales cycles and the emphasis on relationship-building can affect the timing of revenue realization. At Custom Media, we specialize in leveraging our global best practices while accounting for the nuances of the Japanese market, especially when assessing the success of our campaigns.

Revenue is the most direct measure of ABM success. It reflects the tangible impact of personalized marketing efforts on business performance. For ABM campaigns targeting high-value accounts, tracking changes in revenue provides a clear indication of whether the strategy is generating desirable outcomes. Keep in mind that tracking revenue to evaluate ROI for ABM campaigns in Japan might take a little longer. The emphasis on in-person meetings and relationship-building may mean that ROI is realized over a longer period compared to markets where quicker conversions are more common. Patience and a long-term perspective are often necessary to fully assess the impact of ABM strategies in Japan.

Additionally engagement metrics, such as the number of interactions with tailored content, downloads of white papers and attendance at webinars, offer insights into how well your ABM efforts resonate with audiences. High engagement levels indicate that your content is effectively addressing the interests and needs of your audience, which is a positive sign of ABM effectiveness.

For example, this year Custom Media surveyed marketing communications executives and leading companies in Japan regarding their perception and use of content marketing. The study involved 42 executives across various industries and company sizes, revealing insights into content marketing strategies and objectives. The resulting report and launch event in May attracted 50-60 clients and launched a lively panel discussion amongst industry leaders, and led to Custom Media securing more long-term client partnerships.

Beyond tracking the number of leads generated by effective ABM campaigns, it’s important to assess the quality of those leads. Lead scoring systems, which evaluate prospects based on their engagement and fit with your ideal customer profile, help in determining the potential of each lead to convert into a customer. Additionally, monitoring conversion rates from lead to customer provides a measure of how well your ABM strategy is translating engagement into actual business relationships. 

Finally, account penetration measures how effectively your marketing efforts are reaching and influencing key stakeholders within targeted accounts. This includes tracking interactions across different departments and decision-makers within a single organization. Remember that Japan’s strict data privacy laws can impact how data is collected, analyzed and used in evaluating ABM ROI. Making sure you’re in compliance with local regulations while gathering and interpreting data is essential for maintaining trust and avoiding legal issues.

Best Practices for ABM in Japan

To maximize the effectiveness of ABM in Japan, businesses need to adopt a culturally informed approach. Custom Media regularly works with clients to deploy ABM strategies in Japan, and CEO Robert Heldt was even featured on an episode of the Scaling Japan Podcast to talk about the intricacies of this B2B strategy. Here are several key recommendations from Custom Media for companies looking to start or improve their ABM efforts in Japan:

1. Align Sales and Marketing Teams: One of the most critical factors for ABM success is the alignment of sales and marketing teams in the initial stages of campaign development. Regular communication and collaboration between these teams helps to make sure that marketing efforts are effectively supporting sales goals. In Japan, where sales cycles are longer, it’s especially important for sales and marketing to be on the same page, sharing insights and strategies that can help streamline efforts.
2. Invest in Cultural Understanding: Taking the time to understand Japanese business culture and adapting your strategies accordingly is crucial. This includes being patient with longer sales cycles, placing a strong emphasis on relationship-building and respecting the privacy concerns of Japanese businesses. International companies should also be mindful of local business practices, such as the preference for in-person meetings and meishi exchange.
3. Leverage Local Tools and Platforms: While global ABM tools are effective, integrating them with local Japanese tools and platforms is essential for success in Japan. Be prepared to customize your approach to meet the specific needs of the Japanese market.
4. Focus on High-Growth Industries: Targeting industries that are receptive to ABM, such as software, hospitality and fintech, can yield better results. These sectors are more likely to appreciate and respond to personalized marketing efforts, and they offer significant opportunities for businesses looking to establish a strong presence in Japan.

ABM offers a powerful way to connect with high-value accounts, foster long-term relationships and drive significant revenue growth. This can be a particularly tricky process to deploy in the Japanese market. Agencies such as Custom Media that benefit from deep cultural knowledge and global best practices can be the perfect partner for navigating the complexities of ABM in Japan. For more expert advice on tailoring a winning ABM strategy for the Japanese market, contact Custom Media today!