Account-based marketing (ABM) is a strategy that targets high-value accounts (accounts that can generate high revenue if a deal closes) rather than targeting leads. The goal of ABM is to improve efficiency and gain higher revenue from marketing efforts while using fewer resources.
Instead of broad-reaching marketing campaigns that touch the largest possible number of prospective customers, an ABM strategy focuses resources on a defined set of targeted accounts and employs personalized campaigns designed to close deals. ABM enlists tactics like mapping accounts to IP addresses to get the likely buyers or stakeholders in a purchase.
Companies are attracted to ABM for several reasons, including the following:
Better use of marketing resources by focusing on a smaller number of accounts.
Better alignment between marketing and sales departments.
The ability to close bigger deals within targeted accounts.
The ability to increase pipeline velocity, or to close deals faster.
Greater ability to track results given a narrower number of accounts to track and better use of data on accounts and prospects.
More personalized, efficient marketing strategy.
There are some downsides of account-based marketing, however, including the following:
ABM is still early adopter technology and requires solid understanding of customer attributes and data.
Most ABM vendors currently use a pooled IP lookup tool, which is not always 100% accurate.
ABM requires manual work in mapping IP addresses, for example, to customer accounts.
ABM requires a platform, which is another technology you need to invest in. So there are some costs involved in establishing ABM.