Account-based marketing is something of a rising trend, with many pundits calling 2021 the year of account-based marketing. The stats support these claims, with companies dedicating nearly a third of their budgets to ABM and 90% of companies saying that the top goal of their ABM campaigns is to generate new business.
But what is account-based marketing? And how can it help you and your business? Let’s dive in and take a look.
The Basics of Account-Based Marketing
The idea behind account-based marketing is to more closely align sales and marketing teams so that your lead generation and lead nurturing campaigns can work together and you stand a better chance of turning leads into paying customers.
Given that the goal of marketing is to generate leads and the goal of sales is to turn those leads into customers, it makes sense to bring the two as closely together as possible. Account-based marketing is basically all about putting systems in place to align the two departments and to ensure that they’re working together towards a set of common goals.
This puts a much greater emphasis on the quality of leads, with the goal being to bring in a smaller number of people that are actually likely to convert, rather than just trying to capture as much data as possible, regardless of quality. It’s a much more efficient way of working.
What You Need to Know About Account-Based Marketing
Perhaps the most important thing to know about account-based marketing is that it doesn’t rely on a single, specific piece of technology, although it’s true that technology can help. For example, you can use customer relationship management (CRM) systems to store data on people and to track the actions that they take.
But as a general rule, account-based marketing is more of a philosophy or a state of mind. It relies on the gathering and processing of large amounts of data to identify individual customers, figure out who has purchasing intent and then determine a personalised approach to help sales teams to convert them into a paying customer.
ABM is particularly valuable for companies that target B2B clients or where the typical purchase value is on the high end. Because it’s all about tracking and forming relationships, there’s no point turning to account-based marketing if your philosophy is to quickly churn through quick sales.
Account-based marketing isn’t for everyone, in part because the tools and the software don’t come cheap. You’re probably looking at a couple thousand dollars just for starters, with some extra cash required for staffing and training. That means that it’s out of reach for a lot of smaller companies.
It also depends on the industry that you’re in. If you’re in the technology or software industry, your competitors are probably already using ABM, and so you’ll need to jump on the bandwagon if you don’t want to fall behind. If you’re in a slow-moving industry, you might not need to use ABM if you want to remain competitive, but it gives you a chance to proactively get a leg up and be the first adopter.
And so now you’ve heard from us, we want to hear from you. Have you put account-based marketing to use at your company? If so, how did you find it and what were the results like? Be sure to let us know in the comments so that we can keep the discussion going.