Using ABM for B2B SaaS brands is one of the best ways of closing big leads. The marketing approach is tailor-made for pursuing a small number of large clients and selling them premium software plans. Besides higher conversions, account-based marketing also reduces customer churn, which is a major issue for any software company.
It’s worth mentioning that ABM doesn’t provide good results in every situation. The marketing tactic is much better for extensive software that focuses on a smaller number of clients. So, if you’re looking to boost brand awareness and sell your solution to as many people as possible, this might not be the right thing for you.
In this article, we’ll explain the term a bit better, after which we’ll revise all of its benefits.
ABM Basics
Account-based marketing is a well-structured marketing process that prioritizes a small number of qualified leads. The marketing and sales team creates a strategy that will pinpoint businesses that are most likely to purchase from you. Through a highly personalized campaign, marketers try to establish contact with them, after which they refer these leads to sales personnel.
In a way, ABM looks at each lead as a market for itself. Instead of pitching numerous prospects with generic messages, marketers create a personalized buyer journey and experience that would ensure maximum conversions.
Besides increasing conversions, ABM is vital for boosting retention. Prospects who are onboarded in such a manner are less likely to switch to another company, which is crucial for any SaaS brand that wants to maximize retention. Furthermore, it’s much easier to cross-sell and upsell to these clients as you already have a well-established relationship.
5 Main ABM Benefits
ABM isn’t necessarily better than traditional marketing; it’s simply different. The process shows much better results in certain situations, and it especially shines for SaaS brands. That being said, here are a few main benefits you can expect when you use this tactic:
1. Personalization
Personalization is the main characteristic of the ABM approach. As you’re focusing on a small number of highly-paying customers, you need to show them due respect if you wish to close them. Before even thinking of sending them messages, you need to learn more about their company and personal preferences.
You can introduce these tricks in any and all communication. We would also suggest that you learn more about prospects’ private passions, family, religion, and political views. That way, you can focus on things they like while avoiding topics they would be offended by.
In fact, it’s much better if a client understands that they’re precious to your company, as they’re more likely to react favorably. Understanding this dynamic is also beneficial for a client as they will have more leeway when negotiating.
2. Improved Efficiency
Unlike standard marketing approaches, pitching an ABM prospect is more likely to lead to positive outcomes. Then again, this is to be expected, given the amount of work you’ve put into a relationship.
You can further categorize your lead list to focus on businesses that provide more value to your brand. So, not only does ABM segregate between regular and qualified leads, but it also classifies qualified leads between themselves. As a result, SaaS companies can achieve better results with less time and money invested.
Among other reasons, ABM is so effective because it hinges on the alignment of marketing and sales teams. There’s much less time wasted between this department, and they’re more aware of what the other team is doing. Because of that, buyers’ journeys are much shorter, and you’re eliminating lots of back-and-forth between your software brand and client company.
3. Improved Workflows
Even if you temporarily use ABM, the marketing tactic can have a long-term positive impact on your business. As mentioned, this procedure helps align different departments and give purpose to their actions. By working together for a while, you’ll create a more cohesive team that will assist you in future projects.
Specifically, ABM teaches your employees how to differentiate between quality and irrelevant accounts, create a better communication workflow, introduce efficient outreach tactics, and focus on relevant KPIs. In most cases, SaaS brands continue using the same workflow years after they’ve ended their account-based marketing campaigns.
4. Higher Retention
We can’t emphasize enough how important retention is for SaaS brands. Software companies make much more money by keeping the same clients than by onboarding new ones. This is especially true if the buyers’ journey is long and convoluted, as this presumes a higher cost of acquiring new clients.
ABM presumes numerous contacts with each lead and lots of personalized conversations. These calls are vital for creating a bond between two businesses, but they also fulfill another function. By inquiring about prospects’ needs, you can offer them much better, customized software solutions that will move the needle for their business.
That way, when they eventually start using the program, their satisfaction rates will be much higher. Companies that use ABM for onboarding commonly have account managers, which is another way they boost long-term customer retention.
5. Better Campaigns
Often, when companies use traditional marketing, it’s hard to determine what went wrong. As you’ll pitch numerous clients with the same message, it usually comes down to the numbers game, and marketers often disregard their impact on the campaign’s success.
The lack of a well-structured buyers’ journey also means that you won’t know where you lost the client. A certain sentence or a bad email heading might completely derail your campaign without you understanding that. This doesn’t necessarily happen with ABM.
Account-based marketing presumes numerous contacts with B2B prospects, so it’s much easier to determine when they lost their interest. This allows you to polish your offer on the go without having to bang your head against the wall over and over again.
Creating an Actionable ABM Strategy
Due to the complexity of the process, marketers need to implement a comprehensive strategy that will guide them every step of the way. These are the main things you need to cover for maximum results:
- Create Strategic Template
First off, you need to create a template that you’ll fill out for each prospect. The template should include some key information such as business overview, clients’ revenue, software needs, clients’ buying process, sales opportunities and risks, end goals, and other data. Given the ABM methodology, it’s not a bad idea to introduce more data as long as it serves some value.
- Align Teams
As mentioned, alignment is one of the crucial factors you need to cover. Not only should your management be on board with ABM methodology, but you should also ensure all your departments can work well together. Most notably, your marketing and sales teams have to be on the same page for all of this to work.
- Find Prospects
Unlike standard marketing tactics, ABM hinges on lead quality. As you’ll contact a handful of businesses, you need to ensure each one of them is a well-suited partner. The management should first include all leads that are interacting with your brand. After that, you should segregate prospects based on company size, growth, maturity, and spending habits. Of course, you also need to be certain they can benefit from your software.
- Create a Plan
Now is the time to take action. Create an ABM plan that will outline ideal channels and content for specific accounts. You should also find the main decision-makers for each business, as you’d want to contact these users directly. Keep in mind that you’ll need to introduce a high degree of customization so that the message rings with these contacts.
- Build Relationships
Once you’ve created the first contact with these individuals, it’s time to slowly build up your credibility. There are lots of ways to go about things, such as showcasing features, offering free trials, sharing white papers, inviting them to public events, and so on. We also suggest you create a basic email sequence that will guide you from one step to another.
- Measure Results
Although the ABM process is highly customizable, you’ll still need to introduce certain goals, timeliness, and KPIs. That way, you can determine where you’re located during the campaign and whether you should change something. Most importantly, you should track conversions over time, retention rate, and spending per account.
Conclusion
Using ABM for SaaS businesses is a match made in heaven. The meticulous approach is perfect for companies looking to onboard large B2B clients and boost long-term retention. The best thing yet is that ABM projects will align your departments and introduce great workflows that you can reuse for future campaigns.