Account-Based Marketing Creates Personalized Engagement

  • Written by Jonathan Lee, Associate Editor
  • Published in Demand Generation

Traditionally, B2B marketing has taken a volume-centric approach of attracting the widest range of clients possible. However, some larger B2B companies have been successfully practicing a completely divergent marketing tactic by honing in on key accounts, and observers say some smaller B2B firms are beginning to follow suit.

Known as account-based marketing (ABM), this strategy involves a targeted campaign that focuses on a small number of important accounts that offer the greatest potential for a sustained business relationship. Xerox, for example, recently won a Killer Content Award for its content aimed at 30 of its top ManagedPrint Services clients. HPhas also been trailblazing the practice.

The Four Types
Of ABM Strategies

Megan Heuer, VP and Group Director of SiriusDecisions, outlined four subcategories of ABM campaigns:

  • Large-account marketing:Assigning dedicated resources to the biggest customers or extremely high-value prospects. Customized treatment is justified for these accounts due to their size and complexity. From a sales point of view, the accounts may have labels like global, strategic or large enterprise. Use this approach when a large share of growth is contingent upon delivering results in a very small number of companies, and when sellers can benefit from customized marketing help.
     
  • Named-account marketing:Targeting a mixed list of current customers and prospects. The list of accounts per sales rep is usually between 10 and 50, often assigned by geographic territory. Sometimes named-account lists include large accounts, but usually these named accounts are the next tier down in terms of current and potential value. Choose this approach if the sales model delivers business growth from a defined universe of specific accounts. Broad-based demand creation is not as effective since it doesn’t discriminate between named and unnamed accounts. On the other hand, if the named accounts are more of a guideline for sales than a mandate, and any account that presents opportunity will get sales attention and credit, this approach is unnecessary.
     
  • Industry- or segment-account marketing:Targeting companies in a defined segment or industry. This model works when a company sells to markets or segments with only a few, well-defined customers, so the market itself imposes a segment-account-based model. This can also be effective for entering new markets or new buying centers where there is a list of target accounts and broad-based marketing will not be effective.
     
  • Customer marketing: Supporting the post-sale experience and relationship. Every company needs systematic, relevant customer marketing support. The approach will be a case-by-case basis according to business model and product, service or solution. Customer marketing focuses on the non-selling interactions and communications that support better customer engagement, loyalty and advocacy. It supports retention, cross- and upselling efforts by creating a positive environment throughout the customer lifecycle. Components range from analytics and monitoring to retention nurturing, advocacy and reference development. Marketing helps sales or partners efficiently and cost-effectively maintain a relevant dialogue with customers.

 
By keeping these core principles in mind, Heuer noted that marketers can draft a scalable, comprehensive foundation to begin ABM campaigns of their own.

Observers note that many smaller firms have begun deploying ABM campaigns due to the finite nature of the B2B industry and the length of the salescycle compared to B2C.

While B2C marketers have to be more focused on volume, there are only 3,000 B2B companies with more than $250 million in revenue, noted Ardath Albee, CEO of Marketing Interactions. “When you look at B2B, you’re talking about a much more substantial and considered sale, higher margins and longer timelines.”

Megan Heuer, VP and Group Director of SiriusDecisions, said that B2B companies of all sizes should be engaging in ABM campaigns.

“ABM is popular now because it’s come out the reality that marketing is facing,” noted Heuer.“Very often, the broad-based, contact-led model of demand creation is just not helpful when sales only cares about a defined universe. ABM is the natural evolution of marketing’s ability to align with the reality of sales’ go-to-market models.”

Aligning The Company For An ABM Campaign

The foundation of all account-based marketing campaigns is the lead list. Marketers looking to begin ABM campaigns must first define the buyer persona that is to be the target.

When going through this process, every company will be looking at different factors when trying to identify a key account. For example, Demandbase provides a targeting and personalization platform that enables B2B marketers to identify companies that already have certain technologies in place, such as marketing automation platforms, content management frameworks and web analytics solutions, according to Amy Holtzman, Senior Marketing Manager.

Holtzman stressed the need to understand your industry to maximize the impact of an ABM campaign. “You need to do research on your industry,” he said.“The approach is the same but the tactics will change a bit based on industry and offerings.”

However, there are some general signs that marketers across all industries can use to identify a key account for the list, observers noted. Corporate expansions such as new branch openings, store launches and hiring sprees are promising indicators, according to Brian Kelly, CMO of InsideView. Kelly also encouraged ABM marketers to keep an eye out for key point persons migrating to different companies and industries.

“When someone from a company you worked with in the past gets hired into a new company, it’s good to identify and target that person to build a repertoire,” said Kelly, “You want to keep an eye on retention.”

New Mindset For Sales And Marketing

In mass marketing, sales and marketing play very different roles. In ABM, both teams are expected to operate on the same client acquisition wavelength. Unlike their mass marketing counterparts, ABM marketers look first and foremost at accounts, not departments or titles. Jason Stewart, VP of Demand Generation at ANNUITAS, encouraged beginner ABM marketers to think more like sales people.

“Your new customers are going to look a lot like your current ones,” Stewart said, “Determine the characteristics your current customers share, and find new companies that share them as well.”

When Marketo started its ABM campaign, Amanda Schmidt, Senior Director of Customer Success at Marketo, said that the CMO and SVP of Sales partnered to drive a more account-based management approach.

“Our key initiative was to continue expanding business in existing accounts rather than gaining new customers,” said Schmidt, “It always went back to the customer.”

Schmidt also introduced and integrated the InsideView platform into Marketoto provide the ability toidentify and leverage key persons entering new companies.