Account Based Marketing is gaining popularity in the B2B marketing world. Account Based Marketing (ABM) has been around for a while, but advancements in automation and marketing technology have caused a resurgence in ABM’s popularity. Here's what you need to know.
ABM is highly targeted marketing aimed at specific accounts, as opposed to the larger net cast by inbound tactics designed to scoop up a wide range of potential leads.
The main idea of an ABM strategy is rather than living account to account with one-off projects, companies secure and nurture a handful of larger accounts that produce the bulk of their business.
In the past, adopting an ABM approach required hiring project and account managers for each individual account. With today’s powerful account management and lead generation technology, much of the legwork can now be automated, making ABM a more feasible solution at a smaller scale.
ABM has many advantages for creating a more efficient approach to marketing that produces the highest ROI and consistent results of any other B2B strategy.
Benefits Account Based Marketing
Quality Over Quantity
Inbound marketing programs can be effective at generating a large pipeline of leads. However, not all of these leads are equally qualified. Many inbound leads can be dead ends. On average, only 1% of leads are actually converted into paying customers. With an ABM approach, you cast a tighter net, but your catch yields a higher return.
In ABM, you may target a list of specific accounts, or you may target a specific segment of your market—i.e. a marketing agency that specializes in food industry clientele, or a consulting firm that works exclusively with startups. Either way, by marketing your services to a small contingency of high-quality, highly-qualified leads, you increase your likelihood of converting.
Overcoming Limitations of Inbound
The typical inbound marketing strategy operates on buyer personas that dictate audience, tone, and content. By design, these personas make generalizations that may gloss over or overlook some of the more pressing issues that individual cohorts of their audience are concerned about. Failing to address these specific issues misses out the opportunity to connect with consumers at the moments when they need your services most.
Going beyond the buyer persona model to address the specific pain points of individual accounts allows you to more effectively show how your services will solve their problems. By identifying their needs and reaching out with a solution, you provide value to your future customers before they ever sign a dotted line. That’s service, and they’ll know they can expect more of the same if they choose to partner with you.
Efficiency of Resources
ABM used to be the domain of large companies who could afford to hire teams devoted to individual accounts. The advancement of marketing automation technology in recent years has made it possible for smaller teams to harness the power of ABM on a more accessible scale.
Marketing automation platforms allow companies to send personalized content and communications to target accounts. These platforms also provide the tools to nurture relationships and tack leads throughout the marketing funnel until they’ve been converted into customers. With the targeting power of ABM and automation technology, marketing teams are able to accomplish more while using fewer resources.
Streamlines Sales & Marketing
For agencies and in-house teams alike, there’s often a disconnect between sales and marketing. The marketing team is responsible for generating leads, and the sales team is responsible for courting and converting leads.
With an ABM approach, these two goals are merged into one process. Creating individualized marketing initiatives for each account requires collaboration between sales and marketing teams that promotes an increased focus on business objectives, more precise calibration of strategy, and ultimately, a more streamlined customer experience.
Bottom line, ABM is good for both you and your customers. Pruning your lead generation process allows you to focus more effort and energy on providing personalized service for each and every account—from the very beginning.
Forming long-term relationships with customers rather than leap-frogging between one-off projects allows you to dig deep and generate strategic ideas for clients based on a depth of knowledge and understanding about their brand that is just not possible to achieve when you work with someone on merely a project-by-project basis.
Implementing ABM is a significant transition that involves adopting new technology and reorganizing the way your sales and marketing teams work together, but the long-term benefits for your business are undeniable.
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