What is Account Based Marketing?

What is Account Based Marketing?

Account-based marketing (ABM) has grown in popularity over recent years. This strategic approach to marketing involves targeting high-value accounts, instead of only targeting leads. In the past, it was mainly used by large scale companies to target their biggest accounts. Nowadays however, around 90% of marketers realise the potential value of account-based marketing. After all, the main aim of ABM is to use fewer resources to gain higher revenue and improve the efficiency of marketing efforts.

Businesses that incorporate ABM in their B2B marketing strategies have also witnessed an increase in sales and are more likely to close larger deals with their most targeted accounts. But what makes ABM so special? Why has it become such a thriving marketing strategy in such a short space of time? And how can YOU use it to drive revenue and grow your own business?

Who are your Target Accounts?

Account-based marketing has rapidly grown into one of the most promising marketing strategies of the 21st century. Jumping on this bandwagon requires more strategy than blind good fortune. You must grow your target account pool and create a wider spectrum of possible customers.

One of the main tasks that B2B companies face when searching for potential target customers, is the difficulty that comes with predicting future customers and pinpointing those accounts that are most likely to close. Evaluating current clients is one way to make better business decisions. What common attributes do they share? How can you leverage predictive analytics to help identify your future target accounts?

Collective Decision-Making

When it comes to ABM, it is crucial that you take a collective approach to the decision-making process. This allows you to make better B2B buying decisions, as you will have a clearer understanding of various accounts and which of those are truly interested in your solution.

Ad messaging should target the collective, rather than the individual. Many businesses will use IP-based targeting to help identify and address certain accounts you wish to target. This is an excellent way to reach the most promising leads in an efficient and cost effective way.

ABM Target Checklist

Several strategies may be considered depending on your company. You will find that you may encounter the following types of lists:

  • An account list of names.
  • Target segment lists which may be defined by relevant attributes.
  • A selection of strategic accounts.
  • A traditional customer list.
  • A range of clients approaching renewal.

Advantages Vs Disadvantages

Like anything else, account-based marketing comes with its own pros and cons. In most cases, the good points outweigh the “bad”, particularly when it comes to ABM. Let’s take a closer look:

Benefits:

  • IP-based targeting
  • Buy ads in real-time
  • Automated system requiring little management
  • Straightforward implementation

Drawbacks:

  • Needs some manual aid
  • ABM uses early adopter technology
  • Uses another platform
  • Unidentified IP addresses can’t be targeted

Account-based marketing is worth it. Despite having a few minor cons, the pros of this marketing strategy outweigh the cons. You can also measure your results, allowing you to keep a close eye on the outcome of your decisions. This enables you to make the necessary adjustments to help build an effective and fruitful ABM strategy that works for your business.

Author Gyles Seward

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