Does this scenario sound familiar? Sales excuses poor performance, indicating it resulted from a shortage of the right type of qualified leads. Marketing protests that Sales didn’t follow-up with urgency, letting valuable and expensive leads languish. There is a better way.
Traditional Marketing is a numbers game working as many contacts as possible through the funnel. It’s a Volume and Velocity or a Waterfall approach. In this model, Marketing and Sales are bifurcated: Marketing works the top of the funnel for Marketing Qualified Leads (MQL) and hands off the Sales Qualified Lead (SQL) when ready. This separation creates conflict and inefficiency. Marketing strategy and tactics are often created with little input from the sales organization, potentially giving rise to a blame game and finger pointing. Meanwhile, Sales pursues maverick lead gen based on their own criteria and distinct messaging, often dissociated from Marketing initiatives.
Many of the fastest growing tech companies are replacing this traditional method with something more pertinent to both the modern customer and sales experience. Account Based Marketing (ABM) focuses on a targeted list of companies with relevant and timely messaging and activities. Customers are inundated with information, confused by the barrage of companies and solutions, all claiming to be better, faster, cheaper. As a buyer, how can you be confident you’re making the right choice? The old adage “You won’t get fired for buying IBM” doesn’t apply anymore. Choosing today’s hot software startup could mean you were prescient, selecting the next Salesforce.com, or your choice could be surpassed by a better alternative in the near future. As a seller, distinguishing your company from others is tough and, while you believe your messaging and product features are unique, you often sound identical to your customers.
In this high-stakes environment, Account Based Marketing provides a strategic advantage, enabling you to stand out from the crowd and connect with your prospective customers. ABM also identifies and creates better prospects – those who are actively engaged in purchasing – so your sales team can be more efficient. It’s about getting to the right customers at the right time.
How Will You Know ABM Works?
According to TOPO research at the fastest growing tech companies over the past several years, ABM produces better results than traditional marketing in many areas. There is a 30% – 40% improvement in these critical sales metrics.
- Higher Customer Dollar Value Over Time
- Reduced Sales Opportunity Time to Close
- Increased Initial Contract Dollar Value
- Improved Customer Retention Rate
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Plus, ABM results improve over time as your Sales and Marketing teams align more closely as evidenced in these Key Performance Indicators.
- Total Opportunities vs. Pipeline from Target Accounts
- Speed that Opportunities Convert to Closed Sales
- Increased Average Deal Size
- Increased Sales Funnel Velocity
A good first step, if you’re interested in ABM, is to evaluate your current metrics in these areas, assess the value of their improving to your organization, and establish goals.
Next, consider your organization’s present marketing approach and opportunities to improve efficiency, velocity and your competitive stance. Perhaps your marketing works as is and an ABM pilot might be beneficial in a defined segment or with a few willing members of your sales team. The trend toward personalized, customer-centric marketing is accelerating and may create a strategic advantage for those who implement it well. Look for my next article in the coming weeks, where I’ll discuss the fundamentals of getting started with ABM.
