Account-Based Marketing (ABM) has skyrocketed into becoming a fundamental marketing strategy for leading B2B technology companies. ABM’s unique ability to allow businesses to focus on each of their accounts and prospects is undeniably effective. In fact, Alterra Group found that 97% of marketers said ABM had higher ROI than any other marketing activities and; SiriusDecisions revealed that more than 90% of marketers believe that ABM is essential to B2B marketing. If your business has not yet implemented ABM, this article is for you. Below are 3 different approaches to adopting ABM.
ABM is a dynamic marketing strategy in that there are three different approaches your organization can choose from. Blended approaches are used by the highest-performing marketing teams. However, the approach that you ultimately adopt will depend on your business’s specific situation. Fortunately, each approach will significantly help you generate demand, close deals, and maintain customers.
1. Strategic ABM — 1:1
The strategic or “1:1” ABM approach is the traditional, and most effective approach; it treats every account like a market of one. You should reserve this approach for your highest-value accounts that are most motivated to buy and thus best fit your Ideal Customer Profile (ICP). These accounts are typically enterprise accounts with multiple stakeholders and long complex sales cycles.
An integral part of a successful one-to-one campaign is accurately defining the Ideal Customer Profile (ICP). According to TOPO, businesses that are confident in their ICP experience 68% higher account win-rates than those who are not. However, this approach is very time and resource intensive so it should only be adopted for your most ideal customers.
Another key element of this approach is the personalized messaging used in the marketing campaigns targeted at each individual account. Large deals only occur if you can effectively market to the account. This means highlighting specifically how your solution can solve their paint points—especially when you are selling high-consideration solutions.
2. ABM Lite — 1:Few
The second most targeted approach is ABM Lite, or “1:Few”. This approach focuses on groups, ranging in size from 10-100, of second-tier accounts. Second-tier accounts have shown some level of interest, and have large enough revenue potential to warrant some resources. These accounts are grouped based on similar attributes, pain-points or needs. This is so the targeted marketing campaigns can still maintain their customized touch. Technology becomes quite important here as automating the account insight process and executing the campaigns can be complex.
The Lite approach is a great way to discover new market segments and prove out ABM as an effective strategy so that you can later scale it to a programmatic approach. Most of your total accounts will fall under this approach so you must differentiate which groups are more important. The groups whose pain-points or needs resonate most strongly with your organization’s solutions should be prioritized because their revenue potential is higher.
3. Programmatic ABM — 1:Many
Using a programmatic approach feels the most similar to traditional lead-based or outbound marketing. However, instead of blindly marketing to the masses, you divide your audience into meaningful segments. This allows you to target lists of up to 1000 accounts. To do this, you need marketing automation technologies. This approach is far less resource intensive than the other approaches. It is optimal for businesses that focus primarily on smaller wins but still want some degree of personalized marketing.
To be successful with the programmatic approach, you need to have a deep understanding of your company’s Total Addressable Market (TAM). Only after analyzing at your TAM, can you segment meaningfully. You should segment based on horizontal/vertical markets, firmographic data and technology intelligence.
Fuel ABM Success with Advanced Technology Intelligence
The undeniably impressive statistics regarding ABM’s success should be more than enough to persuade any B2B organization into adopting ABM. In determining which ABM approach is the best fit for your business, it’s important to evaluate the capacity of your sales/marketing teams and your budget. Keep in mind that ABM is dynamic; what may work at one point may change over time.
HG Insights specializes in empowering sales and marketing teams with technology intelligence so that they can make smarter decisions that accelerate growth. HG Insights’ unique technology intelligence gives organizations insight into the installed technologies, IT spend, and contract renewals of their accounts. See how HG Insights’ solutions can be used to fuel your ABM success:
- Redefine your ICP to significantly improve your organization’s win rates
- Utilize specific and data-driven messaging to hyper-target your campaigns
- Score & Prioritize the accounts with the highest propensity to buy
- Gain an in-depth understanding of your TAM to analyze and identify the markets with the most revenue and growth potential