If you follow B2B marketing patterns, you might already know about Account-Based Marketing (ABM). Back in the day, it used to be a strategy employed only by big companies to score large accounts, but now, this strategy is trending big time for all B2B marketers.
According to a survey, more than 90 percent of marketers believe that Account-Based marketing is a B2B must have. Companies that use ABM strategies today have reported an increase in pipeline velocity, greater alignment with sales and they are able to close big deals with target clients.
This post should serve only as a high level overview (primer) of what is going on with ABM. Let’s get started.
What is Account-Based Marketing (ABM)?
Instead of creating broad-reaching mass marketing campaigns (spray and pray), that are solely designed to tap as many prospective customers as possible, Account-Based marketing focuses all the resources available on targeted accounts by creating personalized campaigns for each one of them.
Basically, all the accounts are treated as a separate campaign.
So, why do ABM focused sales and marketing teams focus all their attention on a handful of key accounts? Because of their high potential customer lifetime value (CLV). These few accounts have the potential to generate way more revenue and are strategically significant for the company versus the quick sell and move on to the next opportunity.
There is no doubt that some customers are more important than others. Even the Pareto principle states that 20% of your customers generate 80% of your revenue. So, even if you have a large number of potential customers, it does make sense to focus on the few large ones by optimizing campaigns with individualized messages, in order to generate a better revenue.
If you have a high-value prospect that you are trying to turn into a customer, or if you have a high-value customer that you want to sell more to, then ABM is definitely the right strategy for you.
Advantages of using Account-Based Marketing
1. The ROI becomes clearer
Since ABM is incredibly personalized, targeted and precise, as compared to outbound and inbound marketing, calculating ROI for it also becomes a lot easier to tackle.
2. Less wastage of resources
With targeted campaigns, marketing strategies can be scaled only as much as they are needed. This means that the same number of account managers can handle more work in less time, which in turn means, the company wouldn’t have to hire extra talent and the risk will also be reduced.
3. Increased personalization means creates happier clients
According to this report, 75% of the customers still prefer personalized offers over others, and this is also the reason why email campaigns still remain so effective. With ABM, you achieve the same thing.
By converting prospective customers into a separate market, the campaigns become highly targeted and personalized. Since marketers will be doing all their research for this kind of campaign, customers will appreciate them more for the homework.
4. Success is easier to measure
Creating personalized campaigns also make it easier to assess performance data and see if the campaign is working for your target audience or not. This also makes it easier to compare quarterly reports with the forecast goals.
5. Increased sales alignment
Since the ABM marketers operate with the same mindset as the sales team, a better alignment is created between marketing and sales. Let’s face it, having a unified sales and marketing team working towards the same goals is a hell of a lot more effective than each running around with their own agendas.
Today, Account-Based marketing strategies are no longer restricted to big companies. With the right resources and measurement tools, setting up ABM and keeping customer accounts has become easier than ever.