April 10, 2022
By Diana Marcela Cardona, Project Management at Xtendo Global
There is a methodology that B2B companies are developing to reach their potential customers and run campaigns to attract and engage with them. This is account-based marketing (ABM), a process aimed at reducing the risk of targeting unqualified prospects with campaigns.
If you’ve ever had trouble generating more clients to advance through the buying process, this is an opportunity to increase conversion rates and achieve the objectives outlined in your marketing strategies.
The pandemic accelerated the digital world, but it also created a series of health restrictions that make it difficult to reach the clients organizations want. Gone are the days of one-on-one meetings, fairs, conferences, and other events that allowed for potential contact with the buyer persona.
Sales actions require in-person interaction, but now all these commercial forces have been looking for new ways to build relationships beyond email or phone contact. That’s why today, we want to talk about ABM.
What is Account-Based Marketing (ABM)?
It’s a strategic marketing technique that treats an account as a single market. It allows the organization to focus on the needs of each potential customer individually, rather than selling to a broader, more diverse audience.
ABM is gaining more ground within the dynamism of current marketing strategies, so it’s essential for companies to consider this technique and everything they can develop to increase profits.
Why is ABM Important for the B2B Model?
ABM should be used by modern organizations because:
- It helps synchronize marketing and sales teams. When these two areas are in full harmony, the final goals are clearer, and they reach the customer more effectively.
- The teams are able to meet customer needs. When working by account, individually and analyzing each client, the results are favorable.
- It can complement Inbound Marketing strategies to increase effectiveness. On one hand, ABM focuses on the potential customer’s needs individually, while Inbound attracts opportunities with high-quality content.
- High-quality content will always be king. Prioritizing strategies with content tailored to each customer helps build relationships where companies that wish to approach are valued for the full potential they are offering.
At Xtendo, for example, we use the social network LinkedIn to contact customers and provide valuable content, generating exchange spaces once a week.
Advantages of Implementing ABM in Companies
First and foremost, it should be clear that the prevalence of digital channels in all organizations has changed. According to data from Accenture, 61% of all B2B transactions now begin online. Additionally, 80% of sales interactions between suppliers and buyers take place on digital channels, according to Gartner.
Considering the impact of the online universe today, using this technique will help:
- Increase Return on Investment (ROI) when defining a B2B strategy.
- Improve team efficiency within the organization, as they will be better focused and working toward shared objectives.
- Offer quality content specifically created for each target customer.
- Provide a guide for marketing and sales teams to track the evolution of their contacts.
- Provide a better customer experience by giving them new tools to use, which can help create cross-selling programs.
How to Implement ABM in Companies?
For companies to see effective results from implementing this technique, they should keep these points in mind:
- Identify and define accounts
It’s important for companies to map out their customers. The clearer the target, the higher the conversion. This requires analyzing who the customers are, and the database should be as optimized as possible. - Design an ideal ABM list of companies
When creating a list, it helps with predefined segmentation, and the objectives are more aligned and focused. It also helps determine the market size and identify the companies to target. - Create personalized content
This is the foundation of ABM. The content directed at the customer you want to convert must have special characteristics. It should not only be relevant to their sector, but it should also feel like it was specifically created for them, not for other companies in their industry. - Import data from various platforms
Remember, building a solid database is essential. Good tools like Facebook and Google Ads can help gather data. - Learn to measure the impact of ABM
You need to assess the performance of each sale generated throughout the campaign. Remember, these actions are done together for better results.
Success Case at Xtendo
One of the most impactful cases within the company, where ABM achieved favorable results, was Microsoft Corp, who hired Xtendo to increase demand among SMEs in Brazil and parts of Latin America.
For them, an e-learning platform was used to train salespeople in 1,500 channels on new demand-generation techniques. The objective was achieved in several aspects, but the most relevant result was a 56% increase in year-over-year sales after implementing this initiative. Additionally:
- 1,146 channels were trained in demand generation within one year.
- 904 leads were generated in 12 months.
- Marketing ROI grew by more than 20%.
- 559 projects were sold.
- A 22% closure rate.
The challenge with these types of organizations is keeping the company’s offerings well-defined to meet the goals set. ABM is a technique that has found its place in the marketing plans of many companies, as the in-person options of the past seem unlikely to return.
