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Digital Transformation

Efficient interaction between marketing and sales: Account-Based Marketing

Now more than ever, companies are under pressure to get more out of their marketing and sales budgets. Digital customer acquisition and automated lead management are key enablers. In our series "Insights for the Hidden Champions in B2B," we identified the interaction between marketing and sales as one of eight core areas.

In this article, we look at one concept that demonstrates how this interaction can work in practice: Account Based Marketing. The idea is to identify strategically important target accounts and approach them in a targeted, personalized way. In this article, you will learn why this is so important and gain insight into an ideal process.

Key Takeaways: How to become a B2B outperformer

🔍 Account Based Marketing (ABM) is a strategic approach that focuses on individual target accounts and personalized communications and marketing activities for those accounts.

🤝 ABM requires close collaboration between marketing and sales to ensure a consistent and personalized approach for each target account.

💎 The benefits of ABM include improved targeting and personalization, better sales and marketing alignment, and increased ROI and revenue.

💭 An effective ABM strategy includes defining the ideal customer profile, communicating with potential target customers, leveraging data sources, and effectively using data to drive campaigns. Marketing automation plays an essential role here in ensuring efficient processes.

🚀 In addition to acquiring new customers, ABM can also be used to cross-sell and up-sell to deepen customer relationships.

In today's competitive B2B landscape, the decline in leads and sales opportunities is forcing companies to look for innovative strategies to acquire high-value new customers or to profitably grow existing customers. One such strategy that has received a lot of attention in recent years is Account Based Marketing (ABM). ABM is a targeted approach that focuses marketing and sales activities on specific key accounts, with the goal of delivering personalized and effective communications. Find out what's behind the buzzword and whether it really lives up to the public hype.

"Over the past 60 years, we've gotten used to customers coming to us. Now we are moving further and further into areas where the competition is very strong. Now we have to go to the customers!"
(TOWA customer)

What is Account Based Marketing?

Account Based Marketing is a strategic approach that prioritizes individual target accounts rather than the broad market. Key accounts that match the company's ideal customer profile are identified and selected. Existing resources are targeted to customize marketing and sales activities specifically for these accounts. This approach turns the classic marketing funnel on its head. The classic marketing funnel is funnel-shaped. The goal of this funnel is to stimulate demand and generate interest in the prospect. The ABM funnel, on the other hand, begins by identifying companies that represent the ideal customer and could potentially benefit from the offer. The next step is to establish and deepen the relationship with the customer using the omnichannel approach.

Traditional Marketing Funnel vs. Account Based Marketing Funnel

ABM requires close collaboration between marketing and sales to ensure a consistent and personalized approach to each target account across all touchpoints. We prefer the term ABX because it is not just about marketing activities, but also about sales activities.

Why is Account Based Marketing important?

Digitization is changing the buying process and the expectations of B2B decision makers.

B2B customers are no longer spectators. They are in the driver's seat as active decision makers who want to use multiple channels during the buying process. They expect a personalized buying experience with relevant content at the right time and in the right channel. These expectations are consistent with their experiences as B2C shoppers. To meet the needs of these customers, it is critical for B2B companies to develop a holistic, cross-channel strategy tailored to their needs. By providing personalized content and effectively leveraging the various channels, companies can strengthen customer loyalty and increase success in the B2B market.

🧠 Keep in mind: Marketing and sales activities must become more comprehensive and precise.

Changing Roles of Marketing and Sales

The approach to B2B customers has changed in recent years. In the past, the roles of marketing and sales were clearly differentiated. While sales had a monopoly on direct customer contact, marketing's role was more focused on (physical) contact, such as creating the trade show booth or advertising images for promotional purposes. Today, however, the picture is different. Digitalization is blurring the lines, so that marketing is often responsible for the initial contact with the customer, and sales only gets involved when this contact becomes more intensive and lucrative.

🧠 Remember: Marketing and sales silos need to break down and start thinking together.

Resources Limit the Number of Focus Accounts

The proliferation of digital touchpoints makes it difficult for marketing and sales to reach and acquire all potentially relevant customers without significant resource investment. As a result, tier 2 and tier 3 customers are often neglected. From a strategic perspective, however, these customers should not be ignored - especially when it comes to diversifying revenue streams. Account-based marketing enables companies to win tier 1, tier 2, and tier 3 customers through an adapted approach to key account management and the use of marketing automation (more on this in the Marketing Automation section).

🧠 Keep in mind: Sales activities need to be complemented by digital services and automation

As digitalization increases, B2B market share becomes more competitive

Competitive pressures are increasing across all industries, especially with double-digit growth rates in B2B e-commerce and Internet commerce. Companies are under constant pressure to stay one step ahead of the competition.

🧠 Remember: A digital shopping experience is the foundation for maintaining market share in B2B. Data expertise and service will become key differentiators.

"We notice more and more B2B customers want the same personalized buying experience they are used to from B2C."

Florian Wassel - CEO TOWA

Why Account Based Marketing? Key benefits at a glance

📣 Improved targeting and personalization.

Account Based Marketing allows companies to focus their efforts on high-value accounts. By understanding the specific needs, challenges, and preferences of each account, personalized communications can be developed to meet their unique needs. This targeting and personalization improves the overall customer experience and increases the likelihood of success.

Source: McKinsey & Company, 2022

🤝 Improved alignment of sales and marketing.

Account-based marketing fosters collaboration between sales and marketing teams and enables a unified approach to targeting accounts. By working together, marketing can provide valuable insights and support to the sales team to ensure they have the necessary resources and information to effectively interact with target accounts. This alignment results in streamlined processes for communication, improved lead nurturing, and higher conversion rates.

📈 Increase in ROI and revenue.

Account-based marketing delivers a higher return on invested capital when implemented effectively. By focusing resources on a limited number of high-quality accounts, companies can allocate their budgets more efficiently. The personalized and targeted communications result in improved interaction and conversion rates, leading to increased revenue growth and strengthened company positioning.

What does an account-based marketing strategy look like?

The omnichannel approach is a critical factor and component of account-based marketing. By seamlessly integrating different channels, companies can provide a consistent and personalized experience across all touchpoints.

Source: McKinsey & Company, 2022

However, there is no "classic" Account Based Marketing process that all ABM strategists follow. At TOWA, we typically break down the Account Based Marketing process for our clients into the following 7 steps

  1. Define Ideal Customer Profile - Who is the target customer?

  2. Define Values - What are the target customer's problems?

  3. Target Account List - What is the composition of the list of top target accounts?

  4. Communication - How do I communicate with the potential target customers?

  5. Gather data - What data sources can we use?

  6. Enrich data - What information is missing?

  7. Data input - How can I effectively use my data for campaigns?

Cross-Selling and Upselling with Account-Based Marketing

In the context of cross-selling and up-selling, ABM can be an effective strategy for deepening relationships with target accounts and maximizing the value of customer relationships.

"ABM is not only great for acquiring new B2B customers. You can also use this marketing strategy to convert existing customers over and over again."

Niko Bender, Account Based Marketing Expert

Account Based Marketing and Marketing Automation

ABM is powered by automation and marketing software. They are based on algorithms and automate many processes that are not efficient when done manually. This allows companies to focus on smaller target accounts that would otherwise not be served due to resource constraints.

There are a variety of account-based marketing software and tools that can help generate, qualify, and convert leads. These applications are often referred to as ABM software, account-based marketing tools, or lead management software. One of the primary functions of many ABM platforms is to detect and interpret signals of intent and offer meaningful courses of action based on those signals. In addition, marketing automation helps to qualify leads and facilitate conversion.

Our conclusion

Account Based Marketing (ABM) is a strategic approach that focuses on individual target accounts and requires close collaboration between marketing and sales. ABM enables improved targeting and personalization, better sales and marketing alignment, and increased ROI and revenue growth.

An effective ABM strategy includes defining the ideal customer profile, communicating with potential target customers, leveraging data sources, and effectively using data to drive campaigns. ABM can also be used to cross-sell and up-sell to deepen customer relationships. Marketing automation plays a key role in ensuring efficient processes.

Is ABM the right strategy for you?

👀 More Insights for B2B Hidden Champions

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