Account-Based Marketing (ABM) is a strategic approach in which sales and marketing teams join their forces together to focus upon a group of stakeholders rather than an individual. The goal is to build relationships with specific targeted accounts and have clear visibility about buyer needs.
Account-Based Marketing has become more common and a trending topic in B2B marketing nowadays. ABM was developed a decade ago but it gained popularity just a few years ago. The reason why it has become more common and more popular is that ABM forces sales and marketing teams to align because personalization at the account level requires both teams to be in sync on account-specific messaging, and ABM helps to understand the buyers’ needs in-depth.
Account-Based Marketing is in a way different from Traditional Funnel Based Marketing. Traditional Funnel Based Marketing firstly focuses on what needs to be sold and then it decides where to sell it, means marketing strategies like email marketing, advertising, social media marketing, mobile marketing etc. and lastly it focuses on the targeted accounts to whom to sell to. But Account-Based Marketing is the opposite of Traditional Funnel Based Marketing.
In Account-Based Marketing we first focus on who we are trying to target, means our target accounts or target customers. Once we have a specific list of all targeted accounts, we focus on what we want to sell and then we start planning a marketing strategy. ABM gives you a higher revenue in a shorter time frame. If you have multiple people in sales targeting different leads for the same business, they can combine their reports and take a more personalized and strategic approach.
Account-Based Marketing allows you to improve efficiencies by grouping leads based on targeted accounts which helps to focus efforts on quality, which in turn increases lead conversions. It enables you to offer hyper-personalized messages to the right people at the right time.
Account-Based Marketing also benefits customers by offering them a better experience. It is very important to get involved and personalized with the customers to understand their needs and hence increase sales. And this is exactly what ABM does. ABM assures that you are working with the right audience and not wasting time on the wrong audience.
With ABM, the sales team and the marketing team both work as a single unit and are focussed on target accounts rather than an individual lead. And both the teams work together to achieve a common goal which leads to an incredible alignment between both the teams.
ABM is more efficient, scalable and optimized because unlike Traditional Funnel Based Marketing, its efforts are not broad in nature. Marketer only efficiently focuses on the target audience and runs promotional campaigns which are optimized for a specifically targeted audience.
We have used the term target account many times in this article. Now the important question comes here – how to analyze your customer base and identify the best or right customers for your business. To get the answer to these questions you need to work with your teams to make a list of top customers that bring more revenue and profit to your business. And then figure out what makes these top customers different from the other customers in terms of revenue, industry, technology etc. Now once you get the list of the best customers, identify more companies that look like your best customers that share the same attributes like same company size, use the same technology etc. Now, in the next step, expand your understandings of those target customers and target contacts. After that, rank your target accounts and contacts based on who is willing to buy or engage with your business at present and make a list of specific target customers. Lastly, the sales team and marketing team get aligned to focus on the target accounts and then organize marketing campaigns like email marketing, phone call marketing, social media marketing etc.