Businesses utilize a variety of different marketing strategies with the goal of connecting to high-value clients in the target market. Marketing campaigns typically reach a wide audience, but the leads generated are not always an ideal fit. That’s why more and more businesses are turning to account-based marketing strategies. In fact, according to the 2020 State of ABM Report, more than 94 percent of respondents had some form of active AMB program running. Companies with mature account-based marketing programs even credited ABM with up to 73 percent of their total revenue.
What is account-based marketing?
The numbers clearly show that account-based marketing is affective, but what exactly is it? ABM is a marketing strategy that targets specific market accounts and then uses personalized campaigns to engage directly with the target customer. Another important aspect of ABM is targeting existing customers by focusing on upselling or cross selling. For businesses that target larger accounts, the account-based marketing strategy makes it easier to engage and connect directly with a high-profile client.
The benefits of account-based marketing
ABM is a marketing strategy that can make a huge difference to your business. Below are five reasons why you should be using account-based marketing in your business.
More traditional demand generation marketing tools can be effective, but they have their limitations. The main issue is that the marketing message is crafted for a wide audience and therefore is not very personal. Traditional marketing strategies use one message to reach a bunch of different people. ABM, on the other hand, targets specific high-value clients with personalized messages and offers. ABM allows you to tailor your marketing efforts to the specific needs and interests of individual high-value clients.
The marketing and sales teams often work separately from each other in a company. The division between these two departments can be quickly bridged through account-based marketing. ABM requires the collaboration of your sales and marketing organizations to accurately target and identify the right accounts for the campaign. The alignment of sales and marketing also creates an opportunity to move leads further down the sales pipeline. The sales team can identify accounts that need reminders or additional offers to keep them engaged with the brand and moving forward with the sales process.
It’s difficult to measure the revenue generated by traditional marketing campaigns. Business can see an increase in brand engagement, but this doesn’t always immediately translate into sales. However, ABM has a clearly measurable return on investment since you’re targeting individual accounts with each campaign. One survey found more than 80 percent of marketers reported ABM programs outperformed their other marketing initiatives.
Account-based marketing can help your business streamline the sales cycle for large accounts. With traditional marketing campaigns, you send out a message, wait for potential client to connect, and then you start the research process to present to the client. ABM is a more direct approach that identifies ideal customers early on so you can present products and services directly to them with the most impactful messaging. The ABM approach helps you connect with ideal accounts early to build a strong and lasting relationship that will quickly convert into a sale.
ABM requires a heavy investment of resources into the marketing campaign. The approach focuses on a narrower account pool, but when done successfully the converted clients are more likely to stick with your company long-term. The personalized marketing approach makes clients feel appreciated and understood, so they will want to continue working with you. This also makes it easier to gain more sales from their accounts in the future.
As you rollout more products and services, you’ll have developed a strong relationship with existing accounts. These clients will be eager to learn about your new offerings and keep growing along with your business.
Why you need to shift to account-based marketing
The internet makes it exceedingly easy for companies to reach a wide audience. At first glance, this seems like a fantastic opportunity to bring your product or service to everyone. In reality, it’s caused a lot of companies to focus too heavily on a wider and wider customer base instead of investing in the loyal customers they already have.
ABM is bringing businesses back to personal relationships with client accounts. Instead of focusing on quantity, marketing and sales efforts should go toward quality. You want quality clients that align with your business so you can work together long-term and continue growing the relationship. If account-based marketing isn’t part of your marketing strategy yet, it’s time to add it to the agenda.
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