What Is Account Based Marketing (ABM)?
ABM stands for Account-Based Marketing. ABM is a business strategy that involves unified coordination between the marketing team and the sales team to collaborate and appeal towards a specific set of target accounts that fit the organization’s ICP (Ideal Client Profile). This form of customized marketing solution is an improved alternative to traditional ways of reaching and engaging with the most profitable accounts in a given industry.
Rather than trying to attract anyone regardless if they are a good fit or not by simply placing a message out there, ABM allows you to tailor each and every message for specific target accounts. This creates much higher relevance and overall better relationships between you and your prospects. For B2B companies with high-ticket deals, ABM is an essential strategy.
Instead of generalizing marketing campaigns, businesses are “flipping” the traditional funnel and shifting towards an ABM strategy that not only provides a better return on investment but yields a much higher success rate.
The TEAM Framework
Account-based marketing (ABM) is structured in a way that is known as “flipping the funnel”, as in flipping the traditional marketing funnel that so many are used to.
It can be structured into 4 steps, known as the “TEAM framework”, developed by Terminus, an account-based marketing automation platform.
TEAM is an acronym that stands for Target, Engage, Activate, Measure.
What are the perks of Account-Based Marketing?
1. Return on Investment
According to the research of Alterra group, ABM strategy has performed extremely well in attracting new, high-paying customers. Using a personalized and precise tactic of marketing has yielded great benefits with a clear way of measuring Return on Investment.
Metrics used to measure ABM success is different than with traditional funnel marketing. Since companies are strategically chosen based on important ICP criteria, they are already pre-qualified.
2. Utilizing Marketing Budget
Most businesses follow a lead-based strategy. Instead of trying to find out which accounts are appropriate for your services, an ABM strategy allows you to spend money only on accounts that are relevant to your business. That way you not only save money on marketing but also save your valuable time and energy.
Using the traditional lead marketing strategy actually puts most of your marketing budget in the trash. Account-based marketing helps you get the best bang for your financial investments. As a result, you will be spending less time on marketing campaigns that don’t yield any profit or leads.
3. Shortens Sales Cycle
ABM helps to shorten the sales cycle that a marketer otherwise would have to go through. By targeting the decision-makers of important accounts through relevant content, account-based marketing acts as a catalyst that shortens the cycle of sales. Again, this helps businesses reach their target sooner without any waste of time or useless guesses.
4. Improved Customer Experience
How often have you been attacked by emails about products or services that you did not need? Or those generalized marketing emails made you unsubscribe them? Most B2B marketers fail to understand the importance of good customer experience. And that only can be achieved through customized products and services. With ABM, emails are tailored to your customer’s needs and may only be applicable for them, which increases customer experience and the chances of a potential deal increase significantly.
5. Sales and Marketing Teams Collaborate
At the foundation of account-based marketing is complete transparency and alignment between sales and marketing. Most sales and marketing teams are siloed and lack communication. An ABM strategy requires your sales team and marketing teams to collaborate and work towards the same set of target accounts, with the same goals and evaluated using the same metrics. With ABM, you win and lose as a team.
Both teams identify potential client accounts, prepares personalized marketing campaigns for those accounts and progresses towards achieving a closed-won. Working on the same goals not only yields better results but also improves the revenue for the business