Account-Based Marketing: The buzzword (buzz phrase?) that’s transforming the way businesses spend their marketing budget for both new as well as current client relationships. If you’ve heard of it but aren’t sure what account-based marketing is, or why it matters, we’ll break it all down in this guide.
By the time I’m done here, the idea of ABM will no longer be an enigma, and you’ll know how to use it as a strategic game-changer for your business.
What is Account-Based Marketing (ABM)
At heart, Account-Based Marketing is a hype focused personalized B2B marketing strategy that targets high-value accounts instead of relying on a scatter-shot approach. What separates ABM from traditional marketing? Instead of sales and marketing operating each in an entirely separate, unjoined universe, it’s what happens when they actually sit together and plan the best-in-class sales programs together for the largest accounts, treating them as one market in its own right.
Instead of targeting an entire industry, ABM targets specific companies (or accounts) that fit your ideal customer profile and deploys resources to more effectively engage them. You could describe it as an inverted funnel to the traditional lead generation approach: Instead of broad targeting and narrowing down the list of potential customers, you start with high-value accounts and whittle it down from there.
Why is ABM Important
The power of ABM is in the accuracy. Here’s why it’s quickly becoming an essential strategy for the majority of B2B companies.
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Better ROI
There are few marketing tactics with an ROI higher than ABM. A study by Terminus found that nearly 97% of marketers saw a higher return on investment when they used account-based marketing compared to traditional marketing. -
Sales and Marketing Alignment
ABM encourages marketing and sales teams to work more synergistically because both is pursuing the same accounts. This connection lines up messaging and gets clients to sign more quickly. -
Enhanced Customer Experience
When you opt for those ABM strategies, your potential customers are getting custom tailored and valuable information that doesn’t remotely resemble ‘spam’ but rather it is valuable and personal content. This creates better engagement and loyalty in the long term. -
Shorter Sales Cycles
ABM helps scrub out unqualified leads so your sales team can target high-probability accounts and waste less time converting them.
Components of a Successful ABM Plan
The best known process of NBM is ABM, for which several key ingredients must play a role, so as for ABM to work. Here, we breakdown key components of a successful ABM framework.
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Sales and Marketing Alignment
ABM is hinged on the relationship between your sales and marketing departments. In addition to jointly deciding on target accounts and customizing campaigns, you can also work together on reporting. -
Advanced Targeting
ABM is based on a data oriented targeting. Leverage tools such as CRM systems, intent data, and AI to pinpoint accounts that are most likely to find value in what you offer. -
Personalization
Door-opening in account-based marketing is creating communications that are extremely personalized, from emails to case study. The closer your messaging is to your ideal prospect’s pain points, the better your engagement. -
Technology Enablement
ABM is not only a strategy, but also an execution. Tools like HubSpot, Terminus and Marketo have functionalities in place to assist with scaling campaigns and measuring ABM success. -
Metrics and Analysis
Discipline yourself to track the most relevant KPIs. These could be engagement scores, pipeline velocity, and revenue growth from your ideal customers.
Detecting Valuable Accounts
In ABM, the first question is which accounts to go after. Here’s a way to find the accounts that are worth your time.
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Create Your Ideal Customer Profile (ICP)
Your ICP is essentially the perfect firms for your product or service. Factors to consider are industry, the size of the company, revenue generated, location and business challenges. -
Use Data-Driven Insights
Use sales data, social indicators, and third-party solutions such as LinkedIn Sales Navigator to pinpoint which accounts fit your ICP and are showing intent. -
Prioritize
Prioritize potential accounts by strategic value, likelihood to purchase and level of fit with your ICP.
Customizing the Message to Target Audiences
Smart content is what ABM is built on. After you have determined your target accounts, the next step is to create content that resonates with their challenges.
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Develop Tailored Messaging
Do your homework on your target accounts. Get to know their pains, trends, and challenges in their industry. Develop messaging to show why your solution is uniquely set up to meet their needs. -
Take Advantage of Multiple Channels to Reach Out
Leverage custom email, landing pages, webinars, even one-to-one ads. Every interaction should be personalized and valuable to the decision makers at these accounts. -
Showcase Success Stories
Client case studies or testimonials can also be helpful to establish trust. Demonstrate how similar companies have been successful with what you offer.
How Do You Measure if Your ABM Campaigns are Successful?
Good ROI Like any kind of marketing, you’ll have some tracking to do to understand if ABM is working for you. ABM KPIs include the following.
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Account Engagement
Keep track of how frequently your target accounts engage with your emails, ads or website. High participation generally implies interest. -
Pipeline Growth
Monitor how many qualified accounts flow into your sales pipeline directly because of your ABM campaigns. -
Win/Loss Ratios
Compare how targeted accounts do vs. non-targeted to understand the impact of ABM on your closing rate. -
Return on Investment (ROI)
How do you measure the financial return of investment for every dollar spent on ABM? This is one of the most crucial measurements to consider. -
Customer Retention
The best ABM not only helps companies win new business, but it also strengthens the relationships companies have with their customers and increases customer loyalty by delivering personalized experiences.
Is ABM Right For Your Business?
Account-Based Marketing is an amazing strategy, but it’s not for everybody. If your business sells only to small, one-off customers, ABM might not give you the ROI you’re after. But if you sell to large or high-value clients and are prepared to align your sales and marketing departments, ABM might be a game changer for you.
You will want to follow a clear strategy, set yourself up with the right tools and be prepared to personalize. Though ABM is an upfront investment, the potential payoffs — increased revenue, better customer relationships — make it well worth the effort.
Now that you know more about ABM, why not go to the next level and dive deeper into what it could do for your business?
To see how local businesses build strong customer loyalty, check out our feature on the success of Four Seasons Handy Market.
Why Everyone Loves Four Seasons Handy Market
