More marketers have started to take notice of Account based Marketing. The benefits of ABM have been quickly recognized by B2B marketers, contributing to its rapid ascent up the adoption curve. This has helped build momentum for the different types of account-based playbooks. B2B marketers are now applying different types of ABM tactics. Let’s discuss why B2B companies are adopting ABM and its benefits.
Three types of account based marketing
Here are three types of account-based marketing:
Strategic account based marketing
The primary focus of strategic account-based marketing is on current, high-value accounts. Relationships with these consumers are maintained and enhanced by sales, marketing, and management to influence them to purchase more expensive or more products.
The teams choose a select number of high-value accounts (often between one and five), and hyper-targeted account marketing strategies are developed for them. A key component of hyper-targeted marketing is reaching out to consumers. This is done by sending highly personalized marketing communications at the precise moment they are most receptive to engaging.
Scale account based marketing
One of the three types of account based marketing is Scale ABM. As part of a more advanced ABM approach, marketers may prioritize intermediate-level, or “named account” clients. The marketing and sales departments select five-to-ten critical accounts with common problems, objectives, and requirements.
Customers’ demographics, internet usage, ad delivery, and geographical location are just a few factors that programmatic ABM takes into account. In this, marketers classify thousands of accounts based on their company needs, goals, and issues. Sales and marketing departments employ customer relationship management (CRM) and marketing automation systems to categorize these accounts.
Reasons for the popularity of B2B account based marketing
Here are a few reasons why ABM is gaining popularity amongst B2B marketers:
1. Speeds up the customer acquisition process
Personalization and ongoing cultivation of high-value clients and prospects are not new concepts, but ABM gives them a flashy new label. With the help of ABM, marketing departments may get rid of the bad leads that waste time and energy for salespeople. It also emphasizes customer acquisition, which ultimately strengthens marketing groups.
2. A chance to connect on a deeper level
With ABM, businesses may tailor their communications to a smaller subset of their target audience rather than a general one. If you want to win over a specific account, you need to put as much time as possible into producing high-quality material that addresses your potential client’s needs.
3. Sales cycle time reduction
Several people or groups must agree on a purchase before making it. Usually, this would slow down your regular sales and marketing process, but account-based marketing lets you use it to your advantage. That’s another reason why account scoring should be preferred before lead scoring. The principal decision maker and all relevant prospects can be nurtured explicitly with ABM, making it possible to streamline and speed up the sales process.
4. More direct route to return on investment
Accurate, specific, unique, and measurable words describe ABM. As compared to other methods of B2B promotion, it has the highest return on investment (ROI) and the lowest cost (or risk) to implement. This method streamlines the process of coordinating sales and marketing efforts to produce consistent advertising that increases the number of accounts serviced.
5. Efficient use of resources
When done correctly, marketing to accounts your company has identified as potential customers may be remarkably efficient. This is especially the case if you’re making use of the targeting features offered by some of the more modern social media networks. Financially, ABM makes a ton of sense for companies with a clear idea of who they should focus on.
Effective targeting with account based marketing
The idea of account based marketing is not new. The advent of purpose-built tools has made it scalable, not to mention simple to understand and attractive. This facilitates the identification of high-value accounts for marketing and sales teams to pursue and nurture. This kind of pinpoint targeting improves the effectiveness of marketing and sales by attracting the most relevant accounts. Each business would rather direct its limited resources toward the most fruitful avenues of investment. This includes targeting and engaging the most suitable categories of accounts, or even individual accounts. ABM’s promise lies in precisely this outcome.