Account-based marketing (ABM) is a modern marketing strategy that concentrates resources to engage and convert targeted prospects to clients. As many other marketing strategies ABM has its strengths and weaknesses. Also, it should be used when a certain criterion is in place. More to this criterion later.
More and more the term ABM is being used as way to engage to prospects and thus being interchanged with lead generation, but ABM is much more than that. It is a more holistic way to marketing that can also be used for existing customers to generate more revenue from your largest customers by upselling and cross-selling. Likewise 92% of companies with ABM programs report it generates more ROI than any other marketing campaign.
When done well and based on the specific criterion ABM can uphold many benefits. To both the clients and targeted account as they get better customer experience and a team of marketing and sales working together to offer personalized offering. Naturally the company also has benefits. Below there a short selection of four key benefits ABM can generate to the company running them.
Unlike broader B2B marketing tactics, account-based marketing (ABM) provides a clear and measurable ROI thanks to its highly targeted nature. This allows for precise tracking of KPIs like revenue growth, deal size, and customer retention. Data supports this claim: Demand Metric found that 19% of companies using ABM for a year reported a 30% increase in revenue.
When sales and marketing teams are aligned through account-based marketing (ABM), the entire sales process becomes more effective. By working together to identify target accounts, develop tailored campaigns, and manage the sales pipeline, these teams achieve better results. This collaborative approach minimizes wasted resources, reduces internal conflict, and clearly demonstrates the value of marketing in acquiring high-value customers.
Strong client relationships are fundamental to business success. When clients value the relationship, they are more likely to remain loyal partners, even in the face of minor challenges. Account-based marketing (ABM) recognizes this by treating each target account as its own distinct market. By engaging multiple stakeholders within the client organization, ABM cultivates deep, lasting relationships that yield significant benefits throughout the entire engagement.
Complex purchasing decisions often involve multiple stakeholders, which can lengthen the sales cycle as the process works its way up the organizational hierarchy to reach the final decision-maker. Account-based marketing (ABM) streamlines this process by simultaneously engaging all key stakeholders, leading to shorter sales cycles. Furthermore, Gartner research indicates that ABM can increase pipeline conversion rates by up to 14% for B2B marketers, with a 25% improvement in converting marketing-qualified leads (MQLs) to sales-accepted leads (SALs).
ABM can be used in any setting in practice, as one can put a nail to the wall with a screwdriver, but to reach the best outcome and results ABM strategy is better used in B2B use cases and when the following criteria is in place:
The last point can be seen as a subproduct of the second and third, but not always is true. There are some companies that purchase expensive products without extensive decision processes.
When the criteria are achieved then it is possible to start creating campaigns based on ABM strategies. But even before you start creating ABM campaigns you need to choose which type of ABM strategy to use.
Depending on the end goal pretended there are 3 types of account-based marketing. The 3 types are strategic ABM or 1 to 1, ABM lite or 1 to few, and programmatic ABM or 1 to many. They can be done separately or then they can be done in an iterative process.
A company can choose to start in either of them for specific industries or segments. In addition, a company can start at the programmatic ABM and then depending on the engagement of the accounts move to ABM lite and similarly if a company in the ABM lite engages more with the materials and activities of the ABM lite then they can shift that account to strategic ABM.
Strategic ABM, also known as One-to-One ABM, represents the most traditional and highly personalized form of account-based marketing. It focuses on developing hyper-targeted campaigns tailored to the unique needs, challenges, and preferences of individual, high-value accounts. This approach is typically reserved for a company's most critical existing or potential clients, with the goal of strengthening relationships, driving upsells and cross-sells, and securing long-term partnerships.
Key characteristics of Strategic ABM include:
In essence, Strategic ABM is a high-touch, high-reward strategy best suited for companies with significant resources and a focus on cultivating deep, long-term relationships with a select group of key accounts. It's a powerful approach for upselling, cross-selling, and solidifying partnerships with key accounts.
ABM Lite, also known as One-to-Few ABM, bridges the gap between highly personalized Strategic ABM and broader Large-Scale ABM. It involves targeting small groups of similar accounts simultaneously, offering greater personalization than Large-Scale ABM while requiring fewer resources than Strategic ABM. This approach is often used for "second-tier" accounts that are still valuable but may not warrant the intensive, one-to-one focus of Strategic ABM.
Key characteristics of ABM Lite include:
In summary, ABM Lite provides a scalable approach to account-based marketing, allowing companies to deliver targeted messaging to groups of similar accounts without the heavy resource investment of a fully personalized, one-to-one strategy. It's a valuable option for companies looking to move beyond broad marketing campaigns while maintaining a degree of personalization and efficiency.
Programmatic ABM, also known as One-to-Many ABM, represents the most scalable form of account-based marketing. It leverages digital channels and marketing automation technologies to target a large number of accounts (hundreds or even thousands) that align with the Ideal Customer Profile (ICP). While offering less personalization than Strategic (One-to-One) or ABM Lite (One-to-Few), Programmatic ABM provides an efficient way to reach a broad audience of qualified accounts.
Key characteristics of Programmatic ABM include:
In essence, Programmatic ABM offers a cost-effective and efficient way to engage a large number of potential customers who fit the ICP. By leveraging technology and data, companies can achieve scalable personalization and reach a broader audience without the high resource investment required for more personalized ABM approaches. It's a particularly valuable strategy for smaller companies or those looking to generate awareness and leads within a specific market segment.
An idea is nothing more than that without the proper execution. Below you can find an example of an execution process that guarantees successful outcome.
Internal alignment is crucial for sales and marketing to work effectively together with trust and accountability. A dedicated execution team, comprised of both marketing and sales representatives, is essential. At a minimum, the team should include one member from each department to act as project manager, responsible for planning, delegating tasks, and ensuring deliverables are met.
After establishing alignment between sales and marketing, it's crucial to extend this alignment to business owners and other relevant stakeholders. Their input, through information sharing and consultation, is essential for prioritizing target accounts that best support overall business and company objectives.
Researching the selected target accounts is the next step. This involves a deep dive to identify similarities, understand their pain points and interests, and uncover common denominators. This research, combined with the account selection process, guides the decision on which ABM strategy to implement.
This planning phase, technically termed "orchestration," encompasses the development and coordination of all strategic elements and tactical execution. This includes defining the value proposition, messaging, positioning, multi-touch strategy, and content formats. The process concludes with documenting the ABM campaign's high-level metrics and objectives.
The next step is to detail each component of the orchestration plan, focusing specifically on channel selection. This involves determining where target account stakeholders are most likely to engage with content and identifying the channels that will deliver the best results for the ABM campaign.
Tools should be considered only at the end of the planning process. The abundance of similar tools makes it essential to first define your needs. This strategic approach prevents you from being distracted by flashy features and ensures you select tools that genuinely support your objectives and can be optimized for your benefit.
When all the planning has been done it’s time to deploy. Execute based on the previous steps.
With the metrics and objectives established in step four, you should be able to monitor campaign progress. However, if you haven't defined milestone metrics and goals to guide and inform adjustments, you should create them. Without these milestones, you'll have to wait until the campaign's end to assess its success. Given that ABM campaigns can last for months, this could result in significant wasted resources before realizing you're off track.
As the title suggests, this step focuses on campaign adjustments based on performance. By comparing results against established goals and metrics, you can identify areas for improvement and adjust various elements of the campaign, such as messaging, channels, value proposition, and buyer personas to name a few.
Building on the previous step's adjustments, you can further refine the ABM approach and scale it to other industries, ICPs (Ideal Customer Profiles), or business units. You might also shift to a different ABM type based on target account engagement or allocate additional resources to the campaign.
ABM is a focused approach to B2B marketing that targets high-value accounts with personalized campaigns. To execute a successful ABM strategy, employing the right tactics is crucial. Here are some key tactics that drive ABM success:
Effective ABM requires a multi-channel approach to reach target accounts through their preferred communication channels. This integrated strategy ensures consistent messaging and maximizes engagement opportunities. Key channels to consider include:
By strategically combining these channels, you can create a cohesive and impactful experience for your target accounts.
Personalization is at the heart of effective ABM. Generic marketing messages simply won't resonate with high-value accounts. To truly engage them, you need to deliver highly personalized experiences. This involves:
By personalizing every touchpoint, you can demonstrate a deep understanding of your target accounts and build stronger relationships.
Intent data provides valuable insights into the research activities of target accounts, indicating their potential interest in your products or services. By leveraging intent data, you can:
Intent data can be sourced from various providers and platforms, including third-party data providers, website analytics, and marketing automation platforms.
Integrating your CRM (Customer Relationship Management) and marketing automation tools is essential for effective ABM execution. This integration enables you to:
By integrating these tools, you can streamline your ABM efforts, improve efficiency, and maximize ROI.
By implementing these tactics, businesses can effectively target key accounts, build stronger relationships, and drive significant revenue growth through their ABM initiatives.
Data and data-driven decision-making is extremely important in corroborate your decision and reasoning. I explain shortly a couple of metrics to be followed, what they mean and corrective actions when needed.
Measuring the success of your ABM program is important to demonstrate its effectiveness and optimize future campaigns. Also, it will aid you pitching to your superiors or company owners why you should continue with this strategy. Here's how to analyze ROI:
Data-driven insights are essential for continuously improving your ABM strategy. By analyzing metrics, you can identify areas for improvement and adjust your approach accordingly. Here are examples:
Leveraging data can help you refine your strategy to maximize the impact of your ABM campaigns.
Implementing a successful ABM program requires expertise and strategic planning. Partnering with experienced ABM consultants can provide valuable support, including:
By leveraging the expertise of ABM consultants, businesses can accelerate their ABM success, maximize ROI, and achieve significant revenue growth.
Contact Paulo Lopes to discuss how consulting services can help you achieve your ABM goals and unlock significant business growth.