The concept account-based marketing (ABM) was discussed sometime back in this column. Small and medium enterprises (SMEs) often face challenges in identifying and engaging high-value prospects in today’s competitive landscape.
Traditional marketing approaches can be ineffective when targeting key decision-makers in larger organisations. That is where ABM comes into play.
ABM is a strategic approach that aligns marketing and sales efforts to focus on specific target accounts, maximising the chances of generating qualified leads, and driving revenue growth. However, before embarking on an ABM journey, SMEs must assess their readiness.
Here are the key factors an SME owner should consider to determine if you they are ready for ABM:
Clearly define target accounts
The first step towards ABM readiness is having a clear understanding of the target accounts. You should identify the ideal customer profile by analysing past successful customer relationships.
Consider factors such as industry, company size, revenue, geographic location, and pain points. By defining target accounts, you can evaluate if your customer base aligns with the ABM approach, and if your organisation has the necessary resources to support the initiative.
Sales and marketing alignment
ABM demands close collaboration between the sales and marketing functions. Assess if both teams are willing to work together to identify target accounts, develop account-specific messaging, and measure the success of ABM campaigns.
The presence of a strong, integrated sales and marketing process is essential for ABM success.
Data and technology infrastructure
To implement ABM effectively, you need access to accurate and comprehensive data about target accounts.
Evaluate the quality of existing customer data. Determine if the company has the technology infrastructure and tools necessary to capture, analyse, and leverage customer data effectively.
A wide variety of ABM tools are available to automate and execute ABM strategies. These include tools that provide B2B data management, data analytics based on AI, interaction management covering digital advertising, direct mail, websites, events and sales outreach.
Since data analytics and recommendations are key capabilities of ABM tools, it is important to understand the types of data these platforms work with. For example,
>> Technographic data that identifies the hardware and software systems that the client uses to run its businesses.
>> Firmographic data that provides quantitative business information such as vertical market, company, size and number of locations, number of employees, annual sales and growth.
>> Intent data, that identifies company actions or signals that indicate whether or not an account is “in-market” for a solution.
Content personalisation capabilities
ABM heavily relies on delivering personalised and relevant content to target accounts. Assess if you have the capability to create account-specific content and messaging.
Consider the availability of resources such as skilled copywriters, designers, and content creators to develop tailored content assets. In addition, evaluate the scalability of content creation processes to ensure consistency across multiple target accounts.
Resource allocation
ABM demands a focussed and resource-intensive approach. Assess the availability of dedicated personnel and budgets required to execute ABM campaigns effectively.
Consider if your organisation can allocate the necessary resources for account research, content development, campaign execution, and ongoing account management. Determine if your team can handle the additional workload or if external expertise or outsourcing is required.
Measuring and reporting success
Define key performance indicators (KPIs) to measure the success of your ABM initiatives. Evaluate if you have a robust reporting system in place to track campaign performance, engagement levels, pipeline contribution, and revenue generated from target accounts.
Effective measurement and reporting are critical to determine the return on investment (ROI) and make data-driven decisions for optimising future ABM efforts.
Finally, you must ask if you are willing to make a commitment. ABM is a long-term strategy that takes time and effort to yield results. If you are not willing to make a commitment to ABM, it is unlikely that you will see the benefits.
While specific data on SMEs' readiness for ABM may vary depending on the industry and the region, research conducted by a leading ABM platform indicates that companies adopting ABM see an average 40 percent increase in pipeline conversion rates.
According to another study, 87 percent of B2B marketers agree that ABM delivers a higher ROI than other marketing initiatives.
A report says organisations practicing ABM experienced a 171 percent increase in annual contract value per customer.
Studies by various organizations, including SiriysDecisions, DemandGen, and MarketingPdofs, show ABM users’ lead generation grew 200 percent, sales 50 percent and customer lifetime value by 30 percent.
Data shows that ABM can be an effective strategy for SMEs looking to generate more leads, increase sales, and improve customer lifetime value. However, it's important to note that ABM is not a silver bullet. It takes time, effort, and resources to be successful with ABM.
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