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How to Determine the Effectiveness of Your ABM Strategy – 5 Key Factors to Consider

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When you engage in marketing, your goal is typically to appeal to the broadest customer base possible. You want to reel in as many prospects as you can and turn them into long-term customers.

Every type of business should certainly take that approach to marketing, but that’s not the only way to generate positive results. A more direct approach is known as account-based marketing, or ABM if you prefer to use acronyms.

What Is ABM Marketing?

As noted previously, the more conventional form of marketing usually entails appealing to the widest array of customers possible. ABM is different because the emphasis is placed on serving a specific set of accounts.

Engaging in this type of marketing is advantageous for B2B entities for two main reasons.

First, ABM allows companies to generate revenue faster. With a company’s focus trained on only a few clients, work can be completed faster thus leading to payouts coming in earlier.

On top of that, revenues can also increase significantly with ABM. Certain accounts are considered more valuable for a reason. More often than not, it’s because they pay better for the work they receive.

If you’ve already implemented an ABM plan for your company, tracking its performance should be among your priorities.

Included below are some of the most important factors to consider as they play a huge role in determining the effectiveness of an ABM strategy.

1. The Alignment of the Marketing and Sales Departments

It doesn’t matter how great your account-based marketing tactics are or how innovative your approach is, your strategy simply will not succeed if your marketing and sales departments are not on the same page. Their cooperation is central to the success of this approach to marketing.

Sales departments can no longer rely on outdated methods to close deals while marketing experts need to possess the ability to sell on the spot if prompted.

Aligning the two departments is also important because it makes things easier for your target accounts. They’re getting the same message regardless of who they talk to, their questions can be answered faster, and their relationship with your business can be maintained even if a familiar face leaves.

For more on how to get your marketing and sales teams aligned, please go ahead and check out this article from Forbes.

2. Familiarity with a Target Account

Implementing an ABM strategy means you’re banking heavily on your knowledge of a client’s likes and dislikes. It’s worth taking the time to ask if your employees really have that level of familiarity with a target client.

When was the last time you worked with the owner of that account? Are they still operating similarly to how they did before? Do you have employees who are knowledgeable about the kind of work done by that client?

Those are just some of the questions that need to be answered before you decide to pour more resources into a specific account. You may be tempted to just focus on the most profitable accounts in your company’s database, but that may not necessarily work if your employees don’t understand how to properly interact with those businesses.

3. Ability to Address a Client’s Changing Needs

One more reason why being familiar with a client is crucial to running a successful ABM plan is due to the fact that their status is not going to remain static forever.

Over time, a client’s needs are going to evolve. Problem areas that existed before may go away and new ones may emerge to take their place.

It’s not enough for your employees to be familiar with a client’s line of work or their respective industry. Your employees also need to be capable of making adjustments and adopting new techniques and technologies that come out.

The onus is on your employees to keep up with a client’s changing needs if you want the ABM plan to work out. Failure to do so could lead to your client going elsewhere.

4. Usage of Diverse ABM Tactics

ABM strategies appeal to business owners because they allow for more efficient usage of resources. With only a few accounts being served, resources can be distributed more effectively.

The lower number of accounts being worked on should also make it possible for workers to devise more creative ways to approach marketing. Targeted emails and paid ads on social media are fine, but why stop there.

Businesses can really go out and utilize more elaborate marketing campaigns to grab hold of their target clients.

Organize themed events that are intended to bring in clients from a specific sector or create one that calls on different industry leaders to attend. If events are not feasible for whatever reason, webinars can work too.

The point here is that with so many resources devoted to only a few clients, it’s up to the company to maximize what they have. Taking the same predictable approach to marketing could cause clients to become disillusioned and give them reason to head somewhere else.

By being more inventive with your ABM approach, your clients will be more intrigued and engaged.

5. The Number of Upsells and Cross-Sells

If there is a downside to ABM, it’s that you can limit your company’s growth potential. Because your company’s focus is trained on only a few select clients, you may effectively be closing the door on others.

This is why ABM strategies rely on upsells and cross-sells quite a bit. You’re banking on your current clients to spread the word about your business, hoping that the work you do is deemed worthy enough of their endorsement.

Check out how many clients you’re getting from your existing ones because they will be hugely instrumental to your company’s growth. If you’re not getting any new clients, it may be time to change your approach.

Conclusion

ABM strategies can help businesses grow rapidly, but they do not guarantee success. Business owners will need to evaluate their workforce honestly and see if they really are capable of handling the type of work executing an ABM plan entails.

When executed properly though, companies can live off the successes of an ABM strategy for many years.

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