For a long time, marketers have believed that targeting a wide array of people would translate into sales and profits. While this may help, especially if you are not sure who to target yet, there is a much more efficient way to reach sales goals called account-based marketing.
What is Account-Based Marketing?
ABM, or account-based marketing, is a strategy in which marketers focus on very specific targets instead of many. It is most often explained through fishing. The old school approach, known as inbound marketing, is basically like fishermen who cast a wide net and wait for the fish to come in. Account-based marketing, on the other hand, is more like spearfishing.
A really good way to understand it is through archery. If you have ever participated in archery, you know how much focus it takes. You get your target in sight, line your arrow up to hit it, take a deep breath, tune all the noise around you out, and zoom in on that target before releasing your arrow. That is much like account-based marketing- it requires a great amount of focus, but the benefits of account-based marketing make the effort worth the work.
Benefits of Account-Based Marketing
Sales and Marketing Departments Work Together
With inbound marketing, sales and marketing are two totally separate departments that each has a separate goal. In fact, since the net is so wide, they often have different views on how to best reach customers, and this leads to a disconnect in a business. The right hand often does not know what the left hand is doing since they have no reason to communicate. With account-based marketing, sales and marketing have one goal that they work toward together. Both departments are focusing on the same groups or companies, so campaigns are much more effective.
More Sales and Revenue
Account-based marketing is all about focusing on the people in a company that has decision-making power. In most cases, one person does not make all the buying decisions for a company, so it is important to make marketing campaigns that are relevant to the whole decision-making group. With ABM, sales and marketing drills down on creating highly targeted and personalized campaigns for these groups, which in turn leads to more sales. In fact, statistics state that those companies whose sales and marketing teams work together to create these targeted, personalized campaigns see around a 32% increase in annual revenue.
Efficiency Creates Less Waste
If you have ever worked in a restaurant, you are probably very familiar with being told you need to cut back on waste. Why is that? Every bit of food that is wasted and thrown away costs the restaurant money, and no one wants to lose money on waste. Waste does not just occur in restaurants, either. Other companies and industries dealing with physical waste, wasted time, wasted resources, and more. Sadly, inbound marketing creates a lot of waste. When employees focus on too many targets, time, resources, and efforts are all wasted, costing the company money. With account-based marketing, all that time, those resources, and those efforts target a much small target, and that saves everything that inbound marketing wastes.
Improved Customer Service
Just as ABM helps save time and efforts through specificity, it also opens the doors for better customer service. Of course, a business wants to make initial sales, but it is very important, especially in B2B marketing, to build relationships with those businesses. If a company is only focusing on five companies and makes sales to each of those, they will soon go out of business unless they continue to make sales. Focusing on fewer targets means that you have time to cultivate relationships and show your B2B customers that you value them. If there is some type of problem, you have more time and resources to spend fixing it.
Account-based marketing can work wonders for B2B accounts. The personalized campaigns can create relationships with businesses you are targeting- relationships you may not be able to cultivate when spreading your campaign too wide. Talk with your team today about the benefits your business could experience through refocusing your marketing efforts into a laser-beam strategy.