All about how Account Based Marketing creates sales and marketing harmony, and why it might soon be your new philosophy.
Account Based Marketing (ABM) is a, “business-to-business (B2B) strategy that focuses sales and marketing resources on targeted accounts within specific markets.” Though not a new concept, marketers continue to understand how technology has enhanced ABM by allowing it to be a shared platform for sales and marketers.
Going deeper – according to CIO, who dug into Forrester’s research on Lead-To-Revenue Management, it is challenging to turn customers into leads. “Less than 1 percent of leads turn into revenue… marketers want to shake things up to generate high quality leads that drive revenue.” ABM takes a targeted approach to identify the correct contacts at companies pertaining to open accounts. The practice is viewed as quality vs. quantity. Through the focus on concentrated targets, lead conversation rates increase (we’ll dig ever deeper on this in the second post in this series).
ABM is viewed as evolving because of the involvement of marketing. To practice the ABM philosophy effectively, sales and marketing must be on the same page. However, the two may not always see eye-to-eye. According to Ad Exchanger, there are two pressure points:
“First, there is relentless pressure on marketing teams to demonstrate, with hard evidence, how marketing spend delivers real revenue and customer results. Second, there is growing pressure on most internal sales organizations to reduce cost and build a more modern customer engagement model that is better aligned with the way customers shop today.”
With the drive to increase sales and marketing collaboration, ABM requires concentration on specific accounts. This determines the efficacy and efficiency of marketing efforts pertaining to sales leads.
Here’s where the importance of data (read: tech) arises. Data generation is necessary to deliver proactive and effective customer outreach, in order to generate quality leads. ABM has transformed the automation of data, allowing the industry to react faster. According to Niraj Deo, Senior Director of Product Management Oracle Data Cloud, “In order to automate you need to be programmatic. In order to be programmatic you need to be data-driven. Data is the connective tissue between multiple functions that you do as a part of your customer experience outreach.”
With the focus on lead generation unified with data-driven thinking, a common language has been introduced as accounts are being targeted differently. This new level of communication has aligned comms between sales and marketers. “For marketing it is an activation channel, for sales it is a focus, for the executive team it is a strategic driver for their growth.”
Both sales and marketing are important aspects for enhancing accounts and propelling growth. Being on the same page when it comes to targeting accounts is crucial for lead generation, and thereby allows ABM to work.
Now that you’ve got your head around ABM, come back this Thursday for part 2 of 3 on this topic to understand how targeting stakeholders will aid in nurturing and retaining accounts.
Author: Ayla Quinn