Account-Based Marketing (ABM) is continuing to grow in popularity and 92% of marketers have identified ABM as “very” or “extremely” important to their overall marketing efforts. ABM involves delivering personalized messages to a small number of targeted accounts and key contacts in the account. These messages have been tailored directly toward the target account with content that they will resonate with and find value in. The aim of this is to get customers to engage and move through the buyer’s journey towards a set goal. A CEB study found that individual stakeholders who received personalized content tailored to their specific needs were 40% more willing to purchase from a company than stakeholders who did not. It can be a long and complex process but there are a lot of benefits to ABM. We have shared our top 5 benefits of ABM below!
The Top 5 Benefits of ABM
1. Let’s Get Personal
ABM allows marketers to contact key contacts in target accounts with a personalized approach. This personal touch will make your customer feel valued. Empathize with your customer, let them know that you understand the problems they are facing and that you can provide them with a solution. Use your insights to create meaningful content that is relevant to your customer. Deliver this content to the customer in the right place and at the right time. Personalisation lays the foundation for strong relationships between you and your target account. McKinsey & Company found that personalisation reduces acquisition cost by as much as 50% and can increase revenues by up to 15%.
2. Building and Nurturing Relationships
In ABM you should always strive to establish and maintain relationships with the key contacts in your target account. These relationships will allow for trust to be built between you and your customer. As this trust builds and the relationship is nurtured, you will get an even better insight into your customer to further your personalisation efforts. You will learn about your customers behaviours and will be able to react quickly to customer signals. They will look to you for an expert opinion on the issues that they are encountering. Throughout the relationship you should be continuously collecting data about your customer and their behaviour. This data will help you plan and execute future ABM efforts successfully.
3. Speedy Decision-Making
Traditionally the decision-making process can take a long time to conclude, but ABM has an advantage that speeds up the process. Once you have established and nurtured a relationship with the key decision makers you have identified in the company, you will now have a more direct line in the decision-making process. You can accompany your prospect through the buyers journey faster than normal by delivering personalized content in the right place and at the right time. When it comes time for a decision to be made you have hopefully earned the trust of your target account and they will be ready and willing to become customers.
4. Increased Return on Investment
When ABM is targeted accurately and personalized it can be very cost effective. Generally, in ABM there is a shorter sales cycle involved. ABM involves marketing directly to the most attractive target accounts, by doing so you can eliminate unqualified prospects early. By focusing on the accounts that are likely to convert, you can minimize time wasting, save costs and lower risks. Altera Group reported that 97% of businesses that use an ABM approach saw higher ROIs than with any other marketing strategy.
5. Clearer Results
When measuring your ABM marketing results you will be able to identify success easily. There are much fewer metrics that need to be tracked in your ABM efforts. Because you are setting specific goals for specific accounts, you can almost instantly recognize if your efforts have paid off. For example, you could look at how many accounts were targeted and how many of these accounts had the desired outcome. After identifying this you can then look at the ROI from your efforts. Other key performance indicators like engagement, impressions and brand sentiment can be observed over the course of your ABM efforts. Compare these KPI's to internal benchmarks and objectives. Use these insights from the KPI's to improve your ABM efforts.