ABM or Account-Based Marketing continues gaining popularity. What is it and why are so many companies using it?
What is Account-Based Marketing (ABM)?
ABM or Account-Based Marketing also goes by the name Key Account Marketing. It is a strategic approach to achieving effective business marketing based on account insights and awareness. In this approach, the organization focuses on target marketing a select list of prospective customer accounts or individual prospects.
ABM is a laser-focused enterprise-class marketing strategy used by business-to-business (B2B) companies to concentrate sales and marketing resources on specific target accounts within a given market. It makes use of specialized marketing campaigns and marketing technology designed for engaging every single account based on the needs of the given account and specific attributes.
ABM is known to adopt a highly holistic approach to marketing. It goes beyond the concept of only lead generation. One of the major keys of this marketing strategy is to promote to the existing accounts for encouraging upselling as well as cross-selling. ABM is perfectly suited to agile marketing departments in pre-revenue start-ups, emerging growth scale-ups, and for enterprise-class organizations.
Benefits of Account-Based Marketing for Companies
For B2B companies, Account-Based Marketing delivers a wide range of potential benefits. It is especially true for organizations targeting larger accounts. For organizations that try selling into larger accounts featuring longer sales cycles as well as larger deal sizes, ABM offers an impressive host of benefits in comparison to other marketing strategies.
Here are some for you to have a look at:
· Improved ROI: ABM is measurable and precise. Therefore, it delivers better ROI amongst all other B2B marketing strategies. It is believed that 85 percent of marketers measuring ROI prefer using ABM for delivering greater results in comparison to other marketing approaches.
· Better Alignment of Sales, Product, and Marketing: ABM encourages sales, product and marketing teams of software companies to work in deeper collaboration. It promotes identification of target accounts, designing a customized marketing campaign, and collaborating together for aligning and moving individual accounts upon successful lead conversion.
· Personalized Marketing Strategy: Rather than following a generic approach, marketers can look forward to creating personalized promotions for target accounts. As such, they can take in what the customers want and customize the campaign’s creative assets to the specific needs of the customers.
· Reduced Sales Cycles: In a software company, important decisions will involve major stakeholders of the organization. This would eventually slow down the entire sales process. In the case of Account-Based Marketing, the sales cycle and its duration get shortened. This is because all prospects are taken care of simultaneously.
· Minimal Waste of Resources: Resources and time are entirely focused on the number of accounts that will be closing the sales. This will help in freeing up resources that would have otherwise been wasted.