In a nutshell, account-base marketing is a strategic approach that analyzes, measures, and directs how to efficiently target specific accounts that are likely to convert into paying customers while yielding a greater return on investment(ROI).
For ABM to work effectively, there are a few elements to consider:
Data: Analytics is an essential element of the equation. The data collected on potential accounts needs to have relevant and specific information that helps to determine the following:
- Probability of a target account converting.
- Accounts purchasing power
- Buying journey timeframe
Analysis: With the data on hand, we now should be able to estimate the following:
- Determine the resources needed to earn an account as a customer. Resources refer to either the manpower or technology required during the acquisition/conversion stage.
- Calculate the potential return on investment(ROI).
What are the three types of ABM?
Account-based marketing is composed of three types of approach: one-to-one, one-to-few, one-to-many. The selection for the best approach for your business may vary depending on various factors that will covered in this article.
ONE-TO-ONE ABM:
The one-to-one ABM approach focuses on targeting the most important accounts through a unique set of tailored interactions addressing their challenges and shortcomings on a granular level. Hence it’s name one-to-one. The approach strategically elaborates a plan that may involve cross-collaboration from various departments. Typically, the Marketing and Sales departments will assign an experienced marketeer to work with sales reps to elaborate a customized strategic program for each targeted account, generally known as nurturing. The process involves using a handfull set of resources while strategically tailoring the content along the different stages of the sales pipeline. The one-to-one ABM targeted accounts typically make up the highest percentage of revenue.
ONE-TO-FEW ABM:
In one-to-few ABM the process is scaled, grouping a set of individual accounts by association, generally by necessities and challenges. If needed, further segmentation can be applied by industry, location, or business size. Most of the one-to-few ABM accounts are considered to be second-level accounts. Groups are typically composed of 5 to 15 accounts that share certain commonalities such as the complexity of their hurdles, top priorities, and level of urgency.
Internally, marketing and sales collaborate to recalibrate the approach as a unit, highlighting the solutions to the most common challenges, selecting the best communications channels to be utilized by most, and customizing the existing content that best resonates with the potential customers.
ONE-TO-MANY ABM:
The one-to-many ABM big bangs the model expanding the reach from hundreds to thousands of similar accounts. At this level, automation is a must and technology plays a paramount role in streamlining the process. Companies will employ various marketing technologies and tools that integrate cohesively, referred to as a Martech Stack.
With a proper Martech Stack, a senior account manager can efficiently direct and manage which marketing strategies to use at any giving stage of the customer journey, while generating real-time analytics. The accounts are normally grouped by the type of challenges with the options to segment into company size, geography, or industry sector if needed.
CLOSING THOUGHTS
Suppose you are considering implementing an ABM strategy. In that case, the type of ABM should be defined by the number of potential accounts, followed by an analysis of the manpower needed to oversee the acquisition and management of the accounts. Calculate the number of tools and technology required to support the process. Lastly, determine if the return on investment is in line with the projections and worth the expense.
