What is account based marketing?
Account based marketing (often abbreviated ABM and also known as just account marketing) has been something of a buzzword in online marketing over the past few years. Especially in B2B-direction, but it can now also be relevant in B2C-trade.
In short, account based marketing is a marketing strategy, which concentrates resources and advertising budget on a set of selected leads (accounts). This is highly targeted marketing that often uses personalized advertising campaigns.
In other words, you turn the sales funnel upside down. Normally in sales, you start by finding leads, then warming them up, weeding them out and finally being left with the percentage that actually intend to complete a purchase with you.
With account-based marketing, you start at the last step of the pyramid, so to speak: You assume that you as a company already have a good understanding of who you want to sell to. This can best be illustrated with an example. If you produce mouthpieces for tubas, for example, you can deduce with reasonable accuracy that your customers will be either tuba players, instrument manufacturers or music stores that sell tubas.
It wouldn't make sense to target your ads to all but these few accounts or leads. If you were to take the traditional approach, you might start by targeting your campaigns to users who have shown an interest in tuba playing in some way. This could be Google searches for "learn to play tuba" or "buy tuba". It could also be Facebook Ads for people who selected "classical music" as an interest.
But why take this detour if you can start by focusing directly on the leads you already know are interested in buying your product? If there are only two music store chains in Denmark that carry the exact tubas you specialize in, this is where an account-based marketing approach will focus. With a relatively large budget and persistence, you will establish contact with them and try to make a sale.
In fact, good account marketing goes one step further and doesn't "just" land a sale or even a series of sales, but instead focuses on building a lasting relationship with your prospects. A partnership where their wants and needs become the driving force and where together you can ensure that both parties grow.
Who is account based marketing for?
It might make sense that account-based marketing works well for B2B companies, as it requires a solid budget, strategic planning and preferably a pre-existing basis for knowing your prospects. All of these often characterize B2B commerce.
In addition, B2B commerce is usually more specific in its products and services. Companies are less likely to buy general products as seen in the end user, i.e. in B2C commerce. This in turn suggests that account-based marketing works well for B2B commerce.
But if you're a B2C merchant and your business fits the above factors, there's no reason why you can't try account-based marketing. Do you have a specific product? Do you have a good budget and a reasonable understanding of your prospects? Then account based marketing is definitely worth a try.
The benefits of account based marketing
- There will usually be Much less waste in the advertising budget, precisely because all campaigns are laser-focused and you don't spend money on leads that don't have high potential. For example, there is little or no initial testing or trial when it comes to account-based marketing, as you already know who you are targeting.
- Advertising efforts can be incredibly personalized. There is a lot of talk about personalized marketing, especially in digital commerce. The more personalized an advertisement can be, the better. And with account-based marketing, you have a very complete profile of your prospects from the start. You know exactly what they are looking for. You understand their challenges and the specific factors that come into play in their area. Therefore, your campaigns can (and should) be highly personalized.
- Resources are used efficientlyin terms of time, money and personnel. Account based marketing is therefore a great example of the 80/20 rule. You want to focus 80 percent of your efforts on the 20 percent of leads that have the highest potential.
Account based marketing agency
Due to the rise of account-based marketing in recent years, marketing agencies that specialize in this type of marketing have also emerged. If you're thinking about trying out account-based marketing, you may have good reason to contact an account-based marketing agency.
Of course, you have the basic knowledge of your prospects, but an account-based marketing agency can help you establish contact in the right way, position your products or services in the best possible way and put things in order.
Account-based marketing works really well in conjunction with an automated marketing process where basic tasks are handled automatically and without having to spend time on it. For example, sending out emails at specific times.
If you're just curious about account-based marketing and not sure if it's for you or your business, you should also consider talking to an account-based marketing agency. They will certainly be able to clarify fairly quickly whether account-based marketing will work for you and your product.
