Account-Based Marketing (ABM) is gaining traction as the viable compliment to traditional sales and marketing efforts. ABM allows sales and marketing teams to be more personalized and targeted for the accounts that matter most to their business. But what is ABM and why is there so much hype?
In our latest ebook, A Demand Generation Marketer’s Guide to Predictive and Account-Based Marketing, we take you through:
- The foundation of Account-Based Marketing
- How to select your target accounts
- How predictive marketing helps you build a data-backed ABM strategy
- How to implement an ABM strategy
Get the full ebook here! In this post, we will start with the basics– what is ABM and how has it become so popular?
What is Account-Based Marketing?
Let’s start with the definition of Account-Based Marketing. According to Jon Miller, CEO of Engagio and Co-Founder of Marketo, “ABM is a strategic approach that coordinates personalized marketing and sales efforts to open doors and deepen engagement at specific accounts”.
Account-Based Marketing helps marketers make the transition from a traditional lead-based methodology to an account-based methodology. Going account-based enables marketers to uncover the true definition of a good and a bad lead by assessing company fit. In other words, ABM focuses on looking at whether or not a lead’s company is a business that you can actually sell into. In contrast to traditional demand generation efforts that emphasize a batch-and-blast approach, ABM focuses on providing more personalized engagements with the ideal target accounts—the sales whales, the Glengarry leads, you know, the big ones!
That’s not to say you need to unplug your marketing efforts and start from scratch, this is a strategy that works alongside your existing demand generation process to put your best foot forward with accounts that are more likely to close. Think of the accounts in your ABM strategy like the VIPs of your sales and marketing campaigns. They get the special treatment—personalized content, email campaigns, direct mail offerings, and more that we will get into later. But that doesn’t mean you stop doing traditional demand generation! You can take a deep breath now.
Why Has ABM Become So Popular?
According to SiriusDecisions, 90% of marketers recognize the value of ABM. Plus, we know that ABM has been a buzzword at every single marketing conference this year. What’s all the hype about? Let’s go over some of the benefits that organizations see by putting ABM into action.
ABM Promises Significantly Higher ROI
One of the most intriguing benefits of ABM is that it promises big wins and more of them. According to Engagio, an Account-Based Everything software, the average ABM deal is much larger than deals sourced by typical demand generation, therefore the ROI of these efforts is much higher. In fact, Altera Group found that 97% of marketers said ABM had a somewhat higher or much higher ROI than any other marketing initiatives. This comes in contrast to returns on traditional inbound marketing flattening out. Sales and marketing teams are realizing that inbound sales and traditional outbound prospecting are not working anymore for big name accounts. Revenue teams need a different strategy to approach these companies.
Deals Move Faster
When you are doing ABM, you’re actively targeting each of the decision makers in
a buying process—thus minimizing your chances of an unforeseen influencer holding up the deal you worked so hard to put in motion.
Promotes Sales and Marketing Alignment
The rise of marketing automation and the self-selecting buyer have forced marketing and sales teams to work more closely than ever before. Sales needs to depend on marketing to bring in warm leads and build relationships with today’s self-educating buyers. Marketing has stepped up to the challenge and has earned the respect of executives and sales teams—but there are still major inefficiencies when sales and marketing teams go after different accounts.
ABM is a natural progression toward alignment. ABM requires that sales and marketing teams work together to target their efforts around the same accounts, thereby naturally promoting alignment around the same goals.
ABM allows sales and marketing teams to laser focus their time and resources on accounts that are most likely to drive revenue. Every single effort is targeted, thus removing any excess effort or budget on accounts that are not the right fit for your business.
Now that you are up to speed on what Account-Based Marketing is and why you keep hearing about it, check outA Demand Generation Marketer’s Guide to Predictive and Account-Based Marketing!