What Is Account-Based Marketing? Strategies and Benefits
Introduction to ABM
Imagine if every piece of marketing content you consumed was created specifically for you. This is the approach that many B2B marketers are now taking when it comes to attracting, nurturing and delighting their prospects and customers.
Understanding a prospect’s wants, needs, likes, dislikes and pain points will help you target them on another level. And, ultimately, this will set you apart from your competition, ensure your prospect has a great experience, and buy your product or services. This approach is account-based marketing (ABM), and we’ll discuss this, its benefits, and how to use it, in more detail in the following chapters.
Companies that have used ABM for at least one year see a 10% increase in revenue, while 19% report over 30% revenue growth.
Companies allocate almost 1/3 of their marketing budgets to ABM
What is ABM?
Taking an account-based approach to your marketing strategy means you’re targeting prospective clients with hyperpersonalised content and even reaching out to that client with individually-crafted messaging.
Account-based marketing is a collaboration between marketing and sales (often known as smarketing). This cohesive co-operation allows an effective, tailored experience for the target; encouraging the target through the marketing funnel to the purchase stage.
What’s the goal of ABM?
The aim of account-based marketing is to target your audience using tailored content and outreach that’s more personal, valuable and relevant to that audience in order to encourage them to make a decision to buy your product or services. The ultimate goal is to increase conversions and ROI, build client trust and loyalty, and create happy customers.
74% of B2B marketers report that ABM improves customer lifetime values
63% of marketers use ABM to generate expansion opportunities with existing customers
Companies using ABM strategies experience a 208% increase in their marketing contribution to pipeline
What’s your ABM target audience?
ABM is generally mainly for high-value B2B audiences, but can also be used for high-value B2C audiences. As it’s time-consuming and requires a significant financial investment to reach an individual client, it’s not feasible to target multiple clients at the same time, so is best suited for high-value solutions and products.
Identifying these clients before creating marketing content allows you to create customer profiles (also known as personas) that can help you understand their pain points, wants & needs, stage of buying cycle, etc. In turn, this guides the tone of voice, marketing channels and entire strategy you adopt in your campaign for that client.
One effective method for efficiently and reliably identifying whether a target is a good fit is BANT Qualification. This framework, which stands for Budget, Authority, Need and Timeline, allows salespeople and marketers to assess the likelihood of converting a sale with a prospect (usually used in B2B) before investing time & money in campaigns, communications and other approaches. This has, however, become less common in recent years as it’s less applicable to the more complex realm of digital marketing.
What are the main benefits of ABM?
It’s only right when talking about account-based marketing to cover the benefits of ABM. And there are many at that. Here’s a breakdown of some of the reasons so many businesses adopt it as part of their marketing strategy.
56% of B2B businesses say ABM improves smarketing
Sales and marketing alignment
One of the most important benefits of ABM is the ‘smarketing’ effect — its ability to align sales and marketing, keeping the two departments on the same page.
Forrester and Rollworks found that adopting an ABM strategy led to 56% of B2B businesses experiencing better alignment between sales and marketing.
By ensuring your sales and marketing are aligned, your chances of success are automatically increased. If everyone has the same goal, you’re far more likely to achieve it.
71% of companies with tightly aligned sales and marketing teams consider their ABM strategies highly effective
Improved conversion rate
A targeted ABM approach allows a much higher conversion rate; transitioning from a marketing qualified lead, through to sales qualified, then into a won deal, smoothly and seamlessly when executed well. As a result, the vast majority of marketers find that account-based marketing delivers a high ROI.
58% of B2B marketers say they’ve experienced bigger deals thanks to ABM.
84% of businesses say that ABM delivers a higher ROI than other marketing initiatives, with 60% stating that it increases deal size
60% of companies report that their ABM programs outperform other marketing initiatives in terms of ROI
Companies that implement ABM strategies experience a 171% increase in their annual contract value (ACV)
Become more relevant to your target audience
As you’re personalising your prospect’s journey, you can ensure you stay relevant through your approach and your content. Tailoring your messaging allows you to target your audience specifically with the type of information they need then and there to, ultimately, encourage them to invest in your product or service. This gives you scope to really position your business and your offering to make it hyper-relevant.
56% of B2B marketers consider personalisation as a significant challenge in their ABM efforts
Demand Gen found that 80% of marketers say high-quality, easy to consume content sways their decision to buy
Deliver consistency
As we mentioned above, a key goal of account-based marketing is to delight your audience in order to get them to buy your product or service. Part of this involves ensuring their experience is a positive one. And one way to provide a positive experience is through consistency.
It’s really important to ensure that your prospective customers always understand it’s your brand they’re engaging with. And that’s another reason why sales and marketing alignment is so vital. If the language and general feel changes once they speak to your sales department, this will have a negative impact on their journey and may lead to them deciding against your offering.
Simplify your sales cycle
Is your sales cycle currently complex and convoluted? Because ABM drives you to focus on the accounts that matter most to your business (i.e. the high-value ones), you’ll be able to cut your sales right back, allowing you to boost efficiency.
Fewer wasted resources
Another major benefit of account-based marketing is its efficient nature, with high conversion rates meaning less resources wasted on unsuccessful campaigns.
Better lead nurturing
It’s not just about converting sales, though. ABM can also help with lead nurturing for existing customers. This can be used, for example, when an existing customer’s licence or subscription is approaching its renewal date. This helps you build longer-term, more secure revenue and profitability.
ABM can increase customer retention rates by as much as 89%
Clearer insights
An ABM campaign will give you all the information you need to understand if your efforts are working or not. It will provide insights into which companies have interacted with your efforts, even if they’re not quite at the point where they’re actually ready to buy. You’ll get better insights into how your campaign’s doing compared to other methods.
How do I use account-based marketing?
Account-based marketing is all about having the right marketing mix in order to execute ABM effectively. It’s the opposite of broader marketing campaigns, meaning you’ll reach your target audience wherever they are.Key components of an account-based marketing strategy
If you’re considering account-based marketing to reach your target audience, you’ll want to focus on the key components:Account selection
Identify and prioritise target accounts based on criteria such as revenue potential, and strategic importance.
Buyer persona development
Create detailed buyer personas for key decision-makers and influencers within the target accounts. Understand their pain points, motivations, and challenges.
Content personalisation
Tailor your content and messaging to address the specific needs and pain points of each target account and its key personas.
Cross-channel marketing
Implement multichannel marketing campaigns that may include email marketing, social media advertising, content marketing, and personalised direct outreach.
Sales and marketing alignment
Foster close collaboration between your sales and marketing teams to ensure they are aligned in targeting and engaging with the selected accounts.
Personalise touchpoints
Create personalised touchpoints, such as custom landing pages, emails, and social media interactions, to engage with individuals within the target accounts.
Automate
Utilise marketing automation tools to streamline and scale personalised communication efforts.
Use data and analytics
Leverage data and analytics to monitor the performance of ABM campaigns, track engagement, and make data-driven adjustments.
Ensure you establish key performance indicators (KPIs) for ABM campaigns and regularly measure their success. Analyse the return on investment (ROI) of ABM efforts.
Feed your hungry sales team
Equip your sales team with the resources and insights they need to engage with target accounts effectively.
Be compliant…and ethical
Ensure that your ABM practices adhere to legal and ethical standards, such as GDPR or other data privacy regulations.
Allocate the right budget
Allocate resources and budget according to the priority and potential of each target account.
By incorporating these key components into your ABM strategy, you can create a focused and effective approach to engaging high-value target accounts and driving business growth.
How to choose the right ABM strategy for you
When it comes to ABM, there are several structures to choose from:
1:Few
1:Many
In this chapter, we’ll discuss each of these in more detail.
Who do you want to reach?
Much like the many types of marketing we explore in our KAYBE blogs – from digital content marketing to out of home marketing, seasonal marketing to emotional marketing and B2C & B2B and social media marketing – there are several strategies and structures to account based marketing (ABM).
- 1:1
- Your highest-value prospective account can be approached with a highly-targeted, optimally-effective & highest-conversion tactic of one-to-one strategic ABM. However, this is the highest cost-to-client ratio, meaning it’s important that the client is going to offer a high enough return on investment and profit margin.
- 1:Few
- If you’d rather not put all your eggs in one basket, you can spread your resources out further by targeting a number of different clients/accounts (no more than ten) with the same account-based marketing campaign. This is called ‘1 to few’ or 1:Few account-based marketing.
- 1:Many
- The final type of ABM is 1:Many. This casts a wider net (anywhere from 50 to 1,000 and even higher) with less cost per account and a further-reaching approach. 1:Many ABM can be used for generating interest or introducing existing customers to new products.
What’s the difference between ABM and traditional marketing?
ABM has become big talk over the past few years, but what is it that drives the buzz surrounding it? Well, it can do various things that traditional marketing can’t. Here are the key differences between ABM and more traditional marketing methods are the following:
Personalised approach
What makes ABM so unique – and so effective – is its personalised approach. Using what you know about a specific customer base, and utilising that information to make your messaging more tailored to them, is incredibly impactful. Not to mention more valuable to your audience.
The ‘smarketing’ effect
Another factor that separates ABM from traditional marketing is its ability to fuse marketing and sales teams. ABM is a fantastic way to bring the two teams together and ensure that their goals are aligned.
A more aligned marketing approach
ABM and traditional marketing go hand in hand, so opting to use the two together will ensure you have a marketing approach that is smooth and effective.
More cost-effective
ABM is a more cost-effective way to market, as it uses existing customer insights, leveraging existing knowledge to give you the best possible results.
The role of buyer personas in account-based marketing
In Account-Based Marketing (ABM), buyer personas play a crucial role in helping you tailor your marketing and sales efforts to effectively engage with your target accounts. Buyer personas contribute to the success of your ABM strategy by helping you do the following and more:
- Allowing for personalisation
- More specific targeting
- Making content more relevant
- Aligning all of your messaging
- Identifying the right channels for your audience
- Segmenting your approach
- Building relationships
- Assigning leads scores
What types of content work best in an ABM campaign?
In Account-Based Marketing (ABM) campaigns, the types of content that work best are those that are highly personalised, relevant, and tailored to the specific needs and preferences of the target accounts and personas. Here are some effective types of content for ABM campaigns:
Customised Landing Pages
Create dedicated landing pages for each target account or persona. These pages should feature content and offers tailored to their unique requirements, making it easy for them to take action.
Account-Specific Webinars
Host webinars or online events that are exclusive to specific target accounts. Discuss topics that directly impact their industry or challenges and invite key stakeholders to participate.
Case Studies
Develop case studies that showcase how your solutions have successfully addressed similar challenges faced by the target accounts. Highlight quantifiable results and outcomes.
Custom Reports and Research
Generate custom reports or research papers that provide insights and data relevant to the industry or issues facing the target accounts. Share these reports exclusively with the accounts.
Personalised Videos
Create personalised video messages or presentations for key stakeholders within the target accounts. Videos can convey information in a more engaging and memorable way.
Content Hubs
Build content hubs or microsites tailored to specific accounts or industries. These hubs can host a variety of content types, such as articles, videos, and case studies, all curated for the target audience.
LinkedIn Content
Share content on LinkedIn that is relevant to the target accounts and their industry. Engage with their posts and participate in discussions to build rapport.
Interactive Content
Develop interactive content such as calculators, assessments, or quizzes that allow the target accounts to self-assess their needs and receive personalised recommendations.
Account-Specific Social Media Campaigns
Run targeted social media ad campaigns directed at employees within the target accounts. Share content that speaks to their pain points and interests.
Personalised Whitepapers or eBooks
Create in-depth whitepapers or eBooks that delve into specific challenges faced by the target accounts and provide actionable insights and solutions.
The key to successful ABM content is personalisation and relevance. By creating content that directly addresses the challenges and interests of your target accounts and personas, you increase the likelihood of engagement and success in your ABM campaigns.
