Account-based marketing (ABM) involves identifying a specific set of high-value customers and developing highly targeted marketing and sales strategies to win their business. ABM focuses on a smaller pool of potential customers and requires a deeper understanding of their specific needs and preferences.
Who uses ABM?
The most common users of account-based marketing (ABM) services varies by industry and business size. ABM is typically used by B2B companies that have a relatively small number of high-value accounts. These may include companies such as enterprise-level businesses, technology companies, professional services firms, financial services firms, etc.
Generally, the most common users of ABM services are businesses that have a relatively small number of high-value accounts and need to build strong, personalized relationships with each account.
While larger businesses may have their own marketing departments, ABM can complement and enhance their existing efforts by providing a more targeted and personalized approach to engage and influence high-value accounts. ABM can also help marketing and sales teams work together more effectively, aligning their efforts around common goals and metrics.
It’s important to note that approaching potential targets as an ABM service provider requires a long-term approach that involves building relationships and establishing trust. It may take time to see results, but by taking a strategic and personalized approach, company can increase chances of success and win more high-value accounts.
Manufacturing and account-based marketing
Account-based marketing (ABM) is becoming increasingly popular in the manufacturing industry as more businesses are realizing its potential benefits.
Large manufacturing companies with complex products and long sales cycles are likely to use ABM, as they typically have a smaller number of high-value accounts that require a more personalized approach. Smaller manufacturing businesses are also likely use ABM to target key accounts or specific industries, particularly with limited marketing budgets, as ABM proves to have a better ROI than traditional marketing.
According to a survey by ITSMA, a B2B marketing association, in 2020, 48% of manufacturing companies said they had implemented ABM programs, up from 38% in 2019. This indicates that ABM is gaining popularity among manufacturing businesses as a way to reach and engage high-value customers.
Overall, while the adoption of ABM in manufacturing is still relatively low compared to other industries, it is increasing as more businesses recognize the potential benefits of this approach.
Distributors vs. ABM service providers
Some clients argue that ABM service share similarities to distributor services in manufacturing industry, but this is not entirely true. While there may be some overlap in terms of building relationships with key decision-makers, the focus and approach are quite different.
As a distributor, your goal is to sell products or services to the service buyer’s customers, while as an ABM service provider, your goal is to help the service buyer win new high-value accounts and grow their business.
In contrast to distributors,an ABM service provider is responsible for helping the service buyer to target and engage specific high-value accounts in a more personalized and strategic way.
ABM service provider requires a personalized and targeted approach that focuses on building relationships and providing value to key decision-makers within high-value accounts.
ABM service providers typically act as a third-party consultant or agency that works in partnership with the service buyer.
Their role would be to help the service buyer to develop and execute ABM campaigns that are tailored to their specific goals and target accounts. They work closely with the service buyer to understand their business, their ideal customer profile, and their goals for each targeted account.
By working as a third-party consultant or agency, they can provide a fresh perspective and expertise that the service buyer may not have in-house. They can also bring best practices and insights from other successful ABM campaigns executed for other clients, which can help the service buyer to achieve better results.
Pros and cons of ABM
There are of course several pros and cons of ABM, as with any approach. We listed some of them:
Pros:
- Higher conversion rates: ABM focuses on targeting high-value accounts and decision-makers with personalized messaging and content, which can lead to higher conversion rates and faster sales cycles.
- Better alignment with sales: ABM requires close collaboration between marketing and sales teams, which can lead to better alignment and shared goals. This can improve communication and lead to more effective sales efforts.
- Increased customer retention: By focusing on building relationships with high-value accounts, ABM can help to increase customer retention and loyalty over time.
- Better ROI: ABM campaigns are typically more targeted and personalized, which can lead to better return on investment (ROI) compared to more broad-based marketing strategies.
Cons:
- High cost: ABM requires significant investment in resources and technology to execute effectively, which can be a barrier for some organizations.
- Limited scalability: ABM is typically focused on a smaller number of high-value accounts, which can limit its scalability and potential impact on overall revenue growth.
- Longer sales cycle: While ABM can lead to higher conversion rates, the personalized and targeted nature of the campaigns can also result in longer sales cycles as decision-makers take time to evaluate and consider the offer.
- Requires close collaboration: ABM requires close collaboration between marketing and sales teams, which can be challenging to achieve in some organizations. Without this collaboration, ABM campaigns may not be as effective.
The cost of ABM can vary depending on various factors, such as the size of the target account list, industry niche, the complexity of the campaign, the level of personalization required, and the geographic location of the target accounts. ABM is often priced as a fixed fee or a retainer that covers the costs of creating and executing the campaign over a specific period of time.
Based on industry averages, the cost of ABM services can range from a few thousand euros to tens of thousands of euros per month, depending on the scope and complexity of the campaign. However, the contracts won with key accounts make the investment worth the effort.
Do you need ABM?
Is ABM the right approach for your company? See if you find yourself in the characteristics of businesses that are well-suited for ABM:
- High-value accounts: ABM is most effective when you have a small number of high-value accounts that you want to target. These might be your biggest customers or prospects that have the potential to generate significant revenue for your business.
- Long sales cycles: If your sales cycle is long and complex, ABM can help you stay engaged with your target accounts over time. ABM allows you to deliver personalized messaging and content that speaks to the needs and interests of your target accounts throughout the entire sales cycle.
- Multiple decision-makers: If there are multiple decision-makers involved in the purchasing process for your product or service, ABM can help you engage with each of them individually. By tailoring your messaging and content to the specific needs and interests of each decision-maker, you can increase your chances of closing the sale.
- Complex products or services: If your product or service is complex and requires a lot of education and consultation, ABM can help you build trust and credibility with your target accounts. By delivering personalized content that addresses the unique challenges and concerns of your target accounts, you can position yourself as a trusted advisor and thought leader in your industry.
Overall, ABM is best suited for B2B businesses that sell complex, high-ticket products or services to a small number of high-value accounts.
If you have found yourself in the description, feel free to contact us to learn more.