With Account Based Marketing (ABM) among the fastest trends emerging in the field of marketing, it seems only natural to adopt these processes for your own organisation.
ABM produces best results for mature businesses with a few sales cycles under their belt. But in general, it is a highly focused process for selling to customers with high lifetime value (LTV).
New to ABM? Check out our Introduction to Account Based Marketing.
This is not to say smaller or B2C organisations cannot apply ABM under the right conditions. However the nature of nurture & sales cycles might make it appear too long a wait for too small a reward.
Here we’ve put together a list of questions to help you determine how best to apply ABM to your business:
Does your offering have a well defined target audience?
Often organisations fail not because of their product or its utility but because they fail to deliver it to the right people in the right places. Understanding the nature of your existing & potential customers and their pain points i.e. finding the right product-market fit is a key necessity for account based marketing.
In ABM, marketing & sales teams work together to create a ‘Named list’ of likely customers. Th
Do your sales have a high average purchase value (APV) or lifetime value (LTV)?
ABM requires a good deal of effort from your end. Sales & marketing teams which usually work exclusive of each other need to be brought in sync, and common targets need to be set. Content, often personalised, needs to be developed in order to nurture the lead through their journey. Their intent needs to be constantly monitored so that timely sales efforts may be triggered. Whew.
A focused approach on big ticket sales helps boost the RoI of your marketing spend. Such customers also have greater scope for expansion of business.
Which stage of the buyer journey are your target customers at?
In general, the five stages are described as:
- Unaware – don’t even know they have a problem
- Problem aware – realise the problem, but don’t know a solution
- Solution aware – have solutions in mind, ready to engage with providers
- Product aware – aware of your solution in particular, looking for a trial or purchase
- Most aware – happy with your problem solving, willing to be a brand advocate
At each of these stages, different questions need to be asked and answered through personalised content. While the ABM process is best applied starting at the earliest possible stage, so that the lead may be ‘nurtured’ into the ‘most aware’ stage, it’s still very effective even when applied as late as the ‘product aware’ stage.
Here’s our guide to understanding which ABM approach is best for your business.
What matters more to you – lead quantity or lead quality?
Tracking the performance of your marketing efforts can be quite complicated. A successful approach depends on identifying the right KPIs.
While inbound marketing is good at returning greater numbers of ‘top-of-the-funnel’ (TOFU) leads, ABM nurtures such leads over their journey through the funnel. Focusing on the most responsive prospects, leads to a reduction in the figure that matters most – customer acquisition cost (CAC).
A joint Marketo and Reachforce study found companies that use ABM become 67% better at closing deals.
Does your offering require cross-functional buy-in?
Selling to accounts requires multiple departments to buy-in, with many decision makers involved in the process. To fully engage & convince this ‘buying center’ at any given organisation, it takes a co-ordinated content approach aimed at convincing each buyer. An omni-channel lead nurture process with personalised content paths guides them to a common destination – you.
Over time, the conversion & win rates at the bottom-of-the-funnel (BOFU) rocket, making all your effort worthwhile.
What is the degree of impact of higher customer retention on your business?
One of the most undervalued benefits of account based marketing is the impact on customer retention rates (CRR). Research indicates an increase in CRR by 36%, which positively impacts your profits as well as brand reputation.
After all the cost of retention is usually a fraction (one-fifth) of a new acquisition, and helps build a reliable pipeline for your business. Oh, and keeping your customers happy always attracts more.
We hope this quick primer has given you a fair idea of when ABM works best for your business. If you have any thoughts or queries, feel free to reach out & have a chat!