Companies are always trying to adapt to new market needs and trends. In order to perform even better, these companies can sometimes feel they must seek for new strategies, so they can stand out from competitors.
That’s where Account-Based Marketing (ABM) comes in. It is a strategy focused on specific accounts, which means combining Marketing and Sales workflows. They have to customize their work according to these specific accounts.
Basic principles of ABM
Let’s take a look at four Account-Based Marketing basic principles so we can understand it better:
- Customer perspective and preference. In Account-Based Marketing, Marketing and Sales teams focus on solving customer problems. The goal is to generate value for the client by making an effort to understand their problems.
- Collaborative work and alignment between Sales and Marketing is key for the ABM process.
- Focus on reputation and relationships, not just on the revenue. The goal is to focus on solid relationships with customers, increasing their lifetime value, instead of focusing only on leads and revenue.
- Custom programs and campaigns strengthen relationships and customer interest.
Account Based Marketing offers many benefits, such as:
- revenue boost
- lifetime value
- ROI growth
- lead generation improvement
- customized content improvement
- better understanding of the target audience.
Every day, marketers are increasingly choosing ABM. It is considered one of the biggest trends in B2B marketing today. 78% of professionals in the field state that strategy is the key. On average 69% of them are interested in using ABM to increase their investments, according to research by Information Technology Services Marketing Association (ITSMA, 2016).
Account-Based Marketing approaches (ABM)
Many companies have been practicing ABM in the last few years. Even though it has been running on the market for around 10 years, a large amount of these companies are still going through implementation and testing processes, which can last for about 2 years.
There are currently three approaches available. While some organizations might choose only one ABM approach, others perform combinations between the three: Strategic, Lite and Programmatic.
Strategic Account-Based Marketing builds and performs customized marketing plans for individual selected accounts. Its goal is to work in a highly personalized way, in order to provide a deeper understanding of a particular customer’s issues.
This approach is suitable for companies that sell high value solutions. The goal with strategic ABM is to increase from a small customer portfolio to a large one.
Account-Based Marketing Lite has a more technological element than Strategic ABM. It builds slightly customized and automated actions for selected groups of customers with similar interests, focusing on key decision points, such as what businesses and campaigns to work on.
ABM Lite is suitable for companies that sell high value and high regard services.
The last Account-Based Marketing approach is Programmatic ABM. It uses technology to build marketing campaigns from a customer perspective, with specific customers in mind. This approach helps to increase sales as well as promoting better customer success. It uses segmentations, analyzes and customization by collecting marketing ideas, with an emphasis on similar, small accounts
The programmatic approach targets small customers. Their required investments are not as high, compared to customers of Strategic ABM and ABM Lite types of companies. Also, sale values are lower in Programmatic ABM than in the previous approaches.
Why is Account-Based Marketing important?
ABM is all about the solid relationships that offer the best opportunities, as well as the most valuable accounts. The combination of Marketing and Sales allows you to engage accounts in a customized, more effective way. It’s a win-win situation.
When structuring an ABM strategy, you should consider the following details:
- Aligning Marketing and Sales;
- Establishing the target customer profile;
- Identifying high value accounts;
- Setting decision makers for each account;
- Enhancing the sales process;
- Reducing customer churn (customers who stop consuming your services or do not renew it);
- Increasing revenue;
- Increasing service quality;
- Closing more deals;
- Promoting new sales.
ABM is a great choice for you and your business.