Helping organizations understand the value of marketing can often be a tough sell.
Why is that?
With digital marketing increasingly becoming a profitability driver as the most cost-effective way to drive customer acquisition at scale, it just makes sense, right?
Marketing is often disconnected from the way sales teams pursue opportunities, and generating lots of cold leads and trying to work them through a large funnel by sending generic messages typically yields conversion rates around 1 percent.
So what should you do? Enter Account Based Marketing, or ABM.
Using account based marketing (ABM)
ABM is the practice of identifying and focusing your efforts on the accounts that really matter, and according to a survey by Altera Group, an astounding 97 percent of organizations using an ABM strategy had a higher or much higher return than with other marketing initiatives.
By inverting the traditional early-stage marketing process, ABM marketers focus on high-value accounts that will drive the most impact rather than consider traditional metrics that don’t necessarily translate into monetary results. Once accounts are identified, your organization can deliver strategic, personalized, and orchestrated campaigns to your target audience.
And the really good news? ABM-specific technology integrated into solutions like Marketo and others have made ABM easier and more effective to use. It doesn’t matter if you’re a small, medium or enterprise organization—pursuing hundreds of thousands of contacts in hopes that 1 to 3 percent will respond and convert simply isn’t efficient. ABM allows you to go deeper with fewer prospects and will help take your marketing from a cost center to a profit center.
To learn more about ABM, watch this quick montage from a recent Marketo conference:
Not sold on ABM just yet? Here are the five more reasons you might want to consider implementing an Account Based Marketing strategy:
1. Clear ROI
Poor leads don’t help your bottom line, and B2B companies are finding ABM strategies generate some of the highest ROI as opposed to casting a wide net to maximize leads into a funnel.
2. Less resource waste
We all have limited resources, particularly when it comes to marketing. Account-based marketing targets the most qualified accounts, as agreed upon by both sales and marketing, leading to greater impact for less cost.
3. Personalization and optimization
ABM is inherently optimized to provide a personalized experience to targeted customers. As a service provider, you’re able to provide clearer, customer-centric value propositions and service offerings that resonate with your prospects.
4. Measurement and tracking
Every company struggles with tracking their marketing efforts, particularly when casting a wide (and often random) net. Aligned measurement is easier with a smaller, targeted set of customers where you can more easily draw clearer conclusions on the effectiveness of a campaign.
5. Alignment between sales and marketing
Accounts are what sales people use to measure success, either in the form of accounts in the pipeline or accounts won. ABM speaks the same language and naturally encourages marketing teams to align with sales teams to focus on which accounts they will target. It also encourages teams to create effective strategies to maximize the value of those accounts through each buyer’s journey.
The worldwide growth in SaaS has made it even more critical for marketers to work closely with sales teams for customer acquisition, onboarding, retention and reducing churn. These joint goals have brought marketing and sales teams closer—an essential ingredient in implementing a successful strategy that focuses on ABM.
“Marketing is now on the same path with sales and customer success. It’s going beyond the buyer’s journey and extending it into a customer experience. The marketing team should also be accountable for upsells/cross-sells, increasing adoption, decreasing churn, landing and expanding, and providing an always on air-cover across all channels that meet your customer needs,” says Sangram Vajre, Co-Founder of Terminus.
In the ABM world, the marketing team’s role has expanded far beyond demand generation and lead-collecting activities. Marketers have not only an opportunity but the responsibility to directly influence and generate revenue, thus elevating their status in the organizations they serve.