Top 7 Benefits of Account Based Marketing (ABM)

Shiyam Sunder
|
May 9, 2024
Top 7 Benefits of Account Based Marketing (ABM)

Contents

Running a B2B business is brutal these days.

Market saturation and competition have skyrocketed CAC by 60% in just 5 years. In response, some sales and marketing teams are desperately casting wider nets to target accounts and any potential customer, hoping sheer quantity leads to more conversions.

This "spray and pray" approach is counterproductive and hurts your bottom line.

Sound familiar? Time to switch gears and consider an account based marketing strategy(ABM).

Account based marketing strategy focuses marketing efforts and resources on a specific set of high-value target accounts. These key accounts are most likely to convert and have the biggest deals, lowest churn, and highest upsell potential.

Account based marketing efforts positively impact your bottom line and other key metrics like CAC and LTV. We'll delve deeper into the benefits of ABM in this blog.

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Top 7 benefits of account based marketing Approach (ABM)

Account based marketing approach, unlike the name suggests isn't just a marketing tactic – it impacts your entire buyer's journey and customer relationships. From sales to customer success, A successful ABM strategy fuels business growth across all departments. Here's how an ABM strategy influences key metrics to decrease CAC and increase customer lifetime value (LTV):

Benefits of account based marketing for customer acquisition cost

Here's the various ways in which a successful ABM strategy helps refine overall marketing efforts and reduce CAC:

1. Reduced Ad Spend

Recent changes in technology have made digital advertising tougher for businesses: 

  • iOS updates
  •  privacy regulations
  • and the death of third-party cookies 

These changes mean targeting is less precise. Marketers need new ways to reach engaged audiences. As a result, the marketing strategy has shifted. Marketing teams are relying more on inbound marketing and directing an engaged audience to the website. It is easier to use inbound marketing teamed with a good ABM strategy than relying on paid channels to reel key accounts.

 ABM can help achieve this result

ABM focuses marketing resources and budgets on high value accounts who interact with your content throughout the sales funnel. You invest in building relationships with your target audience, not just anyone who clicks on your ads. The right account based marketing strategy helps complete business objectives-- it leads to more conversions and less wasted spending on broad acquisition tactics.

2. Optimize Marketing Campaigns

Successful businesses rely on repeatable processes. Ideally, your marketing teams identify what resonates with your audience and double down on it!

However, the B2B sales cycle is a chaotic beast that can confuse even seasoned marketers. Account based marketing helps you identify the most effective marketing touchpoints. Primitive attribution models like last touch attribution provide a partial view of the customer journey. They are inadequate compared to a good ABM strategy. Account based marketing helps track the impact of each touchpoint throughout the customer journey. You can also assign value to each customer interaction– use it to optimize your sales process for maximum profitability.

This holistic view saves businesses money. You can identify the most effective channels for each audience segment, allowing you to replicate successful campaigns and marketing strategies. 

This applies to enterprise account based marketing as well – you can create personalized content and campaigns for each targeted segment, taking a focused approach in every case.

Account based marketing is a hidden gem – it builds the foundation for your sales and marketing teams' communication strategy.

3. Sales and Marketing Alignment

One of the biggest challenges of running a B2B business is aligning sales and marketing efforts. It always feels like the buyer's journey from MQL to SQL is an uphill climb. And it doesn't need to be. The root of bad sales and marketing alignment is the way sales and marketing teams approach their goals. Most marketing teams are chasing quantity instead of quality. They tend to chase a diverse audience. But they end up wasting resources qualifying leads who aren't a good fit for the product.

Say for example- Let's say some sales teams have trouble converting small businesses because your product is one of the expensive solutions out there. Yet, the marketing team keeps qualifying leads that fall into this category. They may also target accounts that aren't ready to buy or an audience that doesn't benefit your offering. this disconnect between the marketing and sales teams increases acquisition costs, and wastes time.

Account based marketing avoids bad-fit customers. With account based marketing, leads passed between marketing and sales teams are more likely to be a good fit because they've already shown interest and engagement with personalized content tailored to their specific needs. This increases conversion rates-- when leads (MQLs) passed to sales teams are more likely to convert, reducing wasted marketing efforts and money.

4. Shorter Sales Cycles

Account based marketing goes beyond firmographics– it helps identify target accounts for buying signals. Intent data consists of information such as is key to shortening sales cycles-

Imagine you're an ABM marketer for a cybersecurity company targeting large financial institutions. Using intent data, you identify a specific bank that has been downloading white papers on data breach prevention and attending webinars about ransomware protection. This indicates a high purchase intent for cybersecurity solutions. Armed with this knowledge, sales teams can proactively reach out to these banks or key accounts with a personalized messaging that addresses their specific concerns, potentially accelerating the sales cycle.

Intent providers track website visits, and their companies-- measuring account engagement with specific content. It also helps determine what messaging resonates with the buyer, and what features or offerings will intrigue them. 

In this way, account based marketing helps you personalize your approach when target key accounts actively seeking solutions like yours. Your sales team can optimize the sales funnel and strike while the iron is hot, capturing demand early on instead of waiting for form submissions or demo requests from decision makers. 

Benefits of account based marketing for customer relationships

account based marketing benefits are not limited to sales process and marketing initiatives. The alignment of sales and marketing teams is viewed as a direct result of a successful abm campaign. However, an abm campaign also helps improve customer relationships. It leads to enhanced customer experience resulting in higher customer loyalty and satisfaction-

5. Customer relationships

Account based marketing lets you target key accounts that fit your Ideal Customer Profile (ICP). Yes, big enterprises are attractive and make high value accounts, but that's only if they convert. Contrary to popular belief, your ideal customers are those who benefit most from your products and become brand advocates. Even if these might be small or medium-sized businesses looking for revenue growth.

Account based marketing helps sales and marketing teams target decision makers for these these high value accounts with relevant content and personalized messaging. ABM allows you to anticipate needs of high value prospects and proactively address them. By monitoring target accounts for buying signals, sales rep can reach out at the right time with relevant solutions, exceeding expectations and creating a positive customer experience.

6. Customer lifetime value

Account based marketing programs give you data driven insights on the specific needs of each account. Based on this information, you can tailor your offerings to ensure customers derive maximum value from them. Satisfied customers are more likely to renew contracts, become brand advocates, and generate positive word-of-mouth.

when the marketing and sales teams are equipped to identify and focus on these high-value segments, increases Customer Lifetime Value (LTV). Happy customers sign longer contracts, leading to revenue growth, customer loyalty and upselling/cross-selling opportunities.

Benefits of account based marketing for revenue attribution

Traditional revenue attribution models struggle in B2B, especially without ABM strategy. They often credit the last touchpoint for a sale, ignoring earlier interactions, and don't compare to the focus on individual accounts in ABM strategies.

7. Revenue attrition

ABM improves revenue attribution by focusing on the cumulative impact of marketing efforts on target accounts. This provides a clearer picture of what resonates and moves those target accounts through the sales funnel. Additionally, ABM allows for customized attribution models that consider the whole customer journey and the impact of each customer touchpoint. You can even integrate abm campaigns with Hubspot CRM data for deeper data driven insights.

With better revenue attribution through ABM, you can optimize marketing spend, demonstrate ROI, and improve sales & marketing alignment. You gain a more accurate understanding of how marketing drives revenue for targeted accounts, leading to better decision making and improved results.

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Account based marketing with Tripledart

Account based marketing requires time and effort, which can be challenging for marketing teams with limited resources. Successful campaigns often need additional infrastructure. However, account based marketing agencies like Tripledart can help.

Tripledart acts as an extension of your team, helping you set and achieve new targets without extra hiring or expensive software. We build Account based marketing strategy based on firmographics, personal data, and technological data. We use this to personalize messaging and create strong brand resonance with your ICP.

We leverage market opportunities to boost brand awareness and consideration. Then, we create hyper-personalized account based marketing campaigns to drive success.

Pazcare, a leading platform for custom employee healthcare benefits, was struggling to  convert leads. By partnering with TripleDart, a marketing agency specializing in Account-Based Marketing abm campaigns, Pazcare tripled their conversions in just two quarters!

Abm campaigns helped Pazcare target its marketing efforts towards high value accounts (SMBs) and optimize campaigns for key locations. They also employed strategic bidding to acquire high-quality leads at minimal cost. This success story highlights the power of ABM for sales and marketing – targeted campaigns, location focus, and cost-efficient lead acquisition can significantly boost conversions and helped them expand business.

Here's another interesting success story- RevenueHero, an online scheduling software, faced challenges in qualifying leads and scaling their marketing efforts. They needed a data-driven approach to maximize results. Enter TripleDart!

We implemented a targeted content strategy, creating over 30,000 words of high-quality content relevant to RevenueHero's ideal customer profile (ICP). We also built custom Paid Search, Paid Social, and ABM campaigns from the ground up. By leveraging a close-knit account structure that segmented campaigns based on user intent and region, TripleDart maximized impressions and generated leads. we also experimented with different bidding strategies and CTAs (call to action) to optimize ad conversions and reduce cost-per-lead (CPL).

Thanks to TripleDart's organic and paid marketing with ABM strategies, RevenueHero achieved a significant boost in key metrics:

  • 200% Increase in Organic Traffic from targeted content strategy.
  • 2x Increase in Sales Revenue from optimized paid marketing campaigns.
  • Qualified Leads: ABM helped RevenueHero identify and target high-value accounts, resulting in a pipeline full of qualified lead

Ready to transform your business with account based marketing? Tripledart eliminates the guesswork and creates impactful account based marketing strategy. We even handle the infrastructure so you don't have to! Contact us today!

Shiyam Sunder
Co- Founder | Tripledart - Growth Startups

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