Top 5 Benefits of Account-Based Marketing
Account-based marketing is a trend that you need to be aware of. Over the past year, 96% of marketing leaders globally have stated that COVID-19 has greatly affected and changed their marketing strategy with plans to further adjust their tactics in the future. Well, with account-based marketing becoming more popular than ever before for B2B companies, it is time for you to change your strategy to overcome your competitors.
What is Account-Based Marketing?
Account-based marketing (ABM) is an approach used by B2B companies to reach multiple specific buyers in the same vertical or target larger accounts showing longer sales cycles. ABM brings together the marketing and sales team to develop and nurture potential prospects. It has also been defined as a “sustained, coordinated, strategic approach to identify, engage, close, and grow accounts” by an account-based marketing expert, Steve Watt. Compared to the traditional marketing sales funnel, ABM focuses on a specific audience base and brings them down the broader sales funnel.
Using an Account-based marketing strategy can be difficult but, it is critical for your business to adopt a proper ABM strategy that suits your growth model.
Some ABM features include:
- Display ads
- Agile marketing
- Content marketing
When this is your goal, ABM has several benefits:
- Easier to see the potential return on investment
- Shortens sales cycles
- Increase your personalized to your audience base
- Better managing sales efforts
- Increased employee efficiency
Read below for more information
Benefit #1: Higher return on investment (ROI)
The main goal of ABM is to tailor your marketing campaigns to guide potential customers down the sales funnel to generate higher revenue. Well, the biggest challenge is attribution, being able to associate certain marketing campaigns with new revenue. Guiding your customers down the purchase path can be quite costly and challenging however, ABM makes this simple. By focusing your marketing tactics on specific customers, you can ensure your content is connecting with your audience base.
CEB surveyed 5,000 stakeholders who are involved in B2B purchases and found that 40% of buyers were more willing to purchase from suppliers who had content tailored to their needs rather than stakeholders who did not. That being said, the more personalized service is, the more effective it is in driving higher sales.
Benefit #2: Shortens sales cycle
For many businesses, the main goal is to generate income through leads, sales, and services. With ABM, your business can start to generate more qualified leads since you are focusing all your marketing efforts on one area rather than on customers who are not interested. In the traditional sales cycle, the purchase decision involves multiple stakeholders, which greatly slows down the sales funnel.
Benefit #3: Increases your personalized audience base
Companies using the ABM strategy saw an 80% improvement in CRM (customer relationship management) and their overall reputation. This is because, Account-based marketing is dedicated to catering campaigns for specific audiences by implementing client services, automation, and customer notifications. Personalizing content and services, allows businesses to better connect with their customer leading to long-term relationships.
Benefit #4: Better managing sales efforts
While trying to obtain leads, businesses tend to spend the majority of their time analyzing prospects and creating marketing campaigns for a large audience however, ABM reduces sale efforts by 50%. This would mean, that the 50% of sales time generally spent on selling to non-consumers would be spent more efficiently. ABM brings together sales and marketing teams to better implement marketing and lead strategies. Organizations with tightly alighted sales and marketing strategies tend to see greater growth in revenue compared to those who do not.
Benefit #5: Increased employee efficiency
With ABM, your marketing team would have the ability to automate multiple campaigns at once allowing markers to focus more heavily on key accounts. Additionally, ABMs automation technology allows for your media buying, ad targeting, and selling to become more efficient with less investment. This would mean you would see a higher ROI without all the hard work or funding.