Anyone who works in marketing knows just how constantly this field is changing. There are so many digital strategies available that even we professionals have a hard time keeping up. For example, have you ever heard of Account-Based Marketing (ABM)?
ABM is no longer just a passing fad. The idea is to choose which companies you want as clients and then focus on creating campaigns tailored specifically to those accounts.
These days, ABM is on the rise because it generates a higher ROI (Return on Investment) than other forms of marketing. That’s because personalized communication naturally creates a better customer experience, more engagement and, of course, more sales.
To give you an idea, according to a survey by the Information Technology Services Marketing Association (ITSMA), 87% of companies say this strategy delivers a higher ROI.
In today’s post, you’ll learn what ABM is, what its advantages are, how to develop it, and how it will make you rethink your business’s sales funnel. Ready? Let’s go!
What are the characteristics of Account-Based Marketing?
ABM’s main characteristic is personalization—in other words, the message is crafted entirely to meet the needs of a potential buyer. That’s why you need to target a smaller number of higher-value accounts.
This strategy is most commonly used by B2B companies, where, unlike other businesses, purchasing decisions involve more people. In that case, focusing on just one of the stakeholders may not be an effective way to win over all of them.
For this reason, it makes more sense to think about the group as a whole and craft a single message that convinces everyone involved of your benefits. To do that, it’s essential to know them well.
What are its advantages?
According to a survey by SiriusDecisions, a global B2B research and consulting firm, 93% of the leaders surveyed consider this strategy very or extremely important for B2B businesses. About 20% of them reported closing 50% or more of their deals by focusing on attracting accounts and being more precise in both their messaging and their delivery channel.
Anyone in the field knows how important it is to align marketing and sales through smarketing. ABM makes this process easier, because both teams start thinking the same way: attract the decision-makers and convince them to close the deal.
In addition, because the content is produced specifically for the buyers, engagement with that material ends up being higher. And since the effort is concentrated on a specific target, wasted resources are minimized, which helps optimize sales.
It’s worth remembering that it’s much easier to measure a campaign in the digital environment and know what needs to be changed and/or improved. By studying each account separately, it becomes easier to evaluate the performance of each marketing action.
How do you develop it?
From the very beginning, the marketing and sales teams must be aligned to filter clients and, in doing so, decide which ones will be prioritized at that moment.
Map out how each account operates, create personalized content, define the best channels, and run the campaign. Finally, measure the results and make the necessary changes.
What changes in the sales funnel?
The Inbound Marketing process is usually explained through the traditional sales funnel. The goal is to capture leads and, through quality content, nurture them until they make a purchase, whether on their own or with the help of advertising.
In short, the process of attracting leads and converting them into customers in Inbound Marketing is divided into four stages:
- learning and discovery: the consumer doesn’t yet know they have a problem. The idea is to spark their interest so they realize it;
- problem recognition: at this point, they understand they have a problem and will research possible solutions;
- solution consideration: now aware of the possible solutions, they begin to evaluate the best alternative;
- purchase decision: finally, the consumer compares the available options and chooses the one best suited to their situation. At this stage, it’s important to highlight the company’s competitive advantages.
With ABM, on the other hand, the effort is tailored to the right companies in order to engage them in both the first purchase and future ones. As a result, the funnel is flipped. The sales cycle is longer, more complex and more expensive, but the financial return is higher. There are five stages:
- identify: the marketing and sales teams draw up a list of potential accounts that fit the profile for the solution the company offers;
- expand: once the account is defined, it’s time to gather more information about the company’s decision-makers;
- engage: the marketing plan is executed, involving the contacts;
- delight: at this point, you need to delight your targets. After all, there’s nothing better than genuine, positive referrals;
- measure: finally, study the campaign’s performance through its KPIs (Key Performance Indicators). Don’t rely on secondary metrics such as click-through rate and unique visitors.
Are ABM and Inbound Marketing compatible?
The answer is yes. One doesn’t replace the other, but they don’t compete with each other either. When aligned, they can deliver even better results for your business.
The two different funnels can (and should) complement each other. Inbound, for example, can attract one of the accounts on the ABM list. In addition, new qualified clients may emerge thanks to it and be added to the ABM list.
In the words of Jon Miller, founder of the American software company Engagio, “while Inbound Marketing is fishing with a net, ABM is fishing with a spear.”
If you’ve read this far, you now know what Account-Based Marketing is and the benefits of identifying and defining accounts before running a marketing campaign. But remember that ABM requires quality execution, just like any other strategy. That’s why you should rely on professionals experienced in digital marketing to help you rethink your sales funnel.
Did you enjoy this post about Account-Based Marketing (ABM)? Then while you’re here, also check out “Digital transformation in retail: what is it and why is it necessary?”
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