Account Based Marketing
Account-based marketing is also known as key account-based marketing. It is a strategic marketing method in which an organization communicates with individual prospects or repeat customers who are its target market.
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The popularity of this method is growing with companies such as Bearing Point, HP, Progress Software, and Xerox leading this initiative.
General description
Account-based marketing has grown since the mid-1990s as a demonstration of trends that have disappeared from mass consumer markets toward more affordable goals.
It parallels the business market movement where customers move away from consumer marketing where organizations try to sell individual products to as many customers as possible, using this personalized marketing they focus on selling as many products as possible to one customer at a time.
Background and differences with traditional marketing business
In the marketing of complex business issues, individual account-based marketing plays a dominant role in the extension of business into existing client accounts.
In situations where the initial sale has taken several months, individual account-based marketing is reported to provide a dramatic increase in long-term customer value. Individual account-based marketing can also be applied to key prospect accounts in support of the first sale.
Research shows that buyers are looking to their existing suppliers for updates on relevant issues, but are often disappointed by this.
In UK research, existing vendors were top of all the different information channels technology buyers seek for new solutions, but over 50% felt their vendors were poorly marketed.
The research also showed how much easier it is for organizations to generate more sales from existing customers than from new customers, with 77% of decision-makers saying marketing by new vendors is poorly targeted and makes it easy to justify staying with your current provider.
By treating each account individually, marketing based on individual accounts can be more accurately targeted to the audience and is more likely to be considered relevant than direct marketing activities that are mistargeted
The roles play by sales and marketing teams
Individual account-based marketing is a strong example of how sales and marketing teams align.
In the aligned model, organizations tactical marketing efforts with defined sales goals and use feedback from sales teams to identify potential new markets.
For individual account-based marketing to be successful, joint workshops and a close working relationship between the sales and marketing teams are essential. Marketing will also take a more important role to develop key accounts more intelligently, as is the proposal made by Peppers and Rogers (1993): When two businessmen compete for the same client, the one who has the most information about this client will be the one. most efficient competitor.
Account Based Marketing and the Information Technology Industry
The organizations that see the greatest benefits of account-based marketing are Information Technology Services and Consulting companies. With complex propositions, such as long-cycle sales and repeat customers, these organizations are ideal candidates for this proposition.
Organizations that support sales and marketing efforts in the Technology Industry, including the Information Services Marketing Association (ITSMA), The Marketing Practice, and VAZT Global Inc, have developed a wealth of intellectual capital and practical tools shaping the direction of ABM (Account-Based Marketing), The Marketing Practice and VAZT Global Inc.(VAZT)
Choosing the Key Account
Key accounts are the accounts that organizations identify as an approach to account-based marketing. Not all accounts are eligible to be designated as a strategy or key account and organizations should be careful when choosing an account to focus their account-based marketing efforts on or risk losing a valuable customer.
When choosing, organizations should look at revenue history, account history, margins, and profitability as well as the viability of the customer would be interested in the long-term relationship. Finally, ask yourself what the client and your company have in common. This will help solidify the proposition that the customer will not find this kind of service anywhere else.
Here are some points to help you recognize that a relationship with a key account is about to change.
- Businesses that would regularly come to your company go elsewhere.
- A reorganization within your company could force your relationship to change.
- If both companies involved do not observe an ROI relationship (Profitable Investment).
- If they are not achieving common goals.
Account Based Marketing Program in Accounting
Program Structures
There are several different structures for account-based marketing campaigns but, in general, the following approach:
- Create the strategic structure: the methodology to select the accounts must be focused on and a structure of objectives and measures for the marketing program based on accounts.
- Plan Workshops: link marketing and sales sessions surrounding each account to agree on goals and explore the understanding of the account and relevant propositions.
- Create a Plan: Couple existing corporate marketing activities with new account-specific communications to achieve account-specific goals.
- Execute: Build a sales and marketing team to carry out a plan.
- Review: apply measures such as the value of sales, the amount of potential income in the sales report, the coverage of communications in the account, perception of appointments, and citations made.
Strategies
In terms of specific marketing activities that are part of account-based marketing programs, the following provides a basis for selecting the appropriate tactics for any specific account.
Intelligence: The role of marketing in the description of the account as an objective to identify the relevant proposals and communication preferences.
Awareness: In target accounts where supplier awareness is low, regular communications play an important role in creating a more favorable perception.
Campaign: In accounts as goals, being a leader in gen campaigns can cover opportunities and plan meetings.
Sales: Marketing has a role to play in supporting sales offers and improving conversion rates and shortening the sales cycle.
Recommendation: the cycle is completed when customers become referral channels and are used to increase the market.
