What is account-based marketing?
Research shows companies generate more business from existing customers than new ones, especially if the costs of marketing to potential new customers are factored in. Account-Based Marketing is the practice of establishing and maintaining longer-term relationships with customers, particularly B2B.
How account-based marketing works
Account-Based Marketing focuses on establishing relationships with customers that can lead to ongoing and possibly expanded sales over time. An account rep maintains regular communication with a customer to monitor needs and negotiate prices.
It offers flexibility
Since a company stays better informed about customer's needs it can offer flexible pricing for products that create long-term revenue streams and keep customers coming back.
Account-based marketing allows companies to gather intelligence on customers and also on their industries: data that can help them improve their own marketing efforts and business practices.
Why account-based marketing matters
It creates alignment
Because the customer relationship is ongoing, data about customer needs are constantly being fed by sales teams to the marketing team to improve product offerings, pricing, and communication with existing and potential new accounts.
It creates efficiency
ABM drives more efficient marketing, sales, and product delivery. Five accounts can add up to hundreds or even thousands of consumer sales, requiring much fewer touchpoints and less investment in marketing and advertising.
It creates innovation
ABM offers the ability for companies to truly partner with other companies to improve and enhance each other's operations. Whether it's developing new products or business strategies, it allows both selling and purchasing companies to look outside themselves and get better.