September 28, 2022, Comment off
Account Based Marketing 101: Meaning, Benefits and Types
Account Based Marketing
The conventional B2B marketing and sales pipeline is dysfunctional. With the current iteration of B2B marketing, the goal is to snag as many leads as possible. Hence the strategy takes a wide-angle approach to lead generation. Most B2B leads never materialize into customers because the funnel naturally narrows as it approaches the bottom.
In contrast, account-based marketing inverts the traditional business-to-business (B2B) sales and marketing cycle. The traditional lead-based, inbound-only marketing strategy is challenged by an Account-Based Marketing (ABM) strategy. This article will discuss Account-Based Marketing meaning and the benefits of ABM over lead-based marketing.
What is account based marketing
“Account-Based Marketing” refers to business-to-business advertising in which the marketing and sales departments collaborate to find the most promising accounts and convert them into paying clients. Now that the Account Based Marketing definition has been discussed, let’s move on to the benefits of ABM.
Benefits of ABM over lead-based marketing
Here are a few benefits of B2B account-based marketing:
The fact that account-based marketing relies on data is the source of many advantages. You may tailor your content to specific audiences depending on factors like their industry, job title, place in the buying process, and more. 61% of executives say their company is investing in lead management and nurturing initiatives like these. This is why it’s essential to know Account-Based Marketing basics.
That information also lets you fine-tune your efforts according to the success of individual leads and accounts within those accounts. Discover which mediums and messages resonate most with your target audience, and then adapt your approach accordingly. As a result of this type of real-time optimization, 46% more marketers are seeing an increase in income from their pipelines.
Account-Based Marketing 101 is knowing that you won’t need as many KPIs and metrics to monitor. When focusing on a more manageable number of accounts, it’s simpler to create goals and assess progress. The detailed plans you made at the outset of your campaigns also make it simple to evaluate outcomes.
Another critical perk of account-based marketing is the vast amounts of valuable data it can help you collect. Your executive team will be pleased with your performance if you demonstrate a direct correlation between your marketing efforts and the amount of money coming in through your pipeline.
Without the appropriate ABM technology, taking advantage of this marketing strategy is tough. As a result of ABM automation, your marketers can manage more accounts with fewer people by setting up processes once and scaling them across several campaigns. Automation improves the effectiveness of media buying, ad targeting, modelling, upselling, and other similar techniques.
Moreover, Account-Based Marketing (ABM) enhances productivity by allowing businesses to zero in on the accounts that produce the greatest return on investment and revenue. You can quickly stop marketing to an account once you determine they are no longer a good return on your investment. Account-based marketing helps you save time and money, two of your most precious assets.
Enhanced interaction with customers
It’s a well-known marketing cliche that costs five times as much to bring in a new customer as it does to keep an old one. If you want to lower your churn rate, it’s essential to focus on retaining your current customers and attracting new ones that are a good fit for your firm.
Types of account based marketing
Here are the three types of ABM:
Strategic account-based marketing is most often used for existing, high-value accounts. With this strategy, sales, marketing, and management may work together more effectively to upsell and cross-sell to these clients.
Second-tier named accounts focus on one-to-few marketing, often known as ABM lite. The needs of each consumer are less critical. Instead, the marketing and sales departments will select five to ten key accounts that share common problems, objectives, and requirements.
One-to-many marketing, or programmatic account-based marketing, is the third tier. Programmatic ABM organizes accounts based on their shared characteristics such as industry, size, and issues in the same way as one-to-few marketing does. Yet, programmatic ABM clusters hundreds or even thousands of accounts based on client profiles, as opposed to focusing on only five to ten.
Adopt data-driven account based marketing
Getting the attention of potential consumers today looks significantly different. B2B companies need to take into account the different platforms and devices that are fighting for consumers’ attention. Using an Account-Based Marketing approach is essential for businesses looking to maximize their profits. However, going the account-based route means a data-driven approach to your marketing programs. Else, it’s highly likely that you’ll end up without the desired results.