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How to Leverage ABM for B2B SaaS

ABM for B2B SaaS

Are you a B2B SaaS founder looking for ways to get more customers? Are you interested in turning cold leads into loyal, long-term users of your product or service? Account-based marketing (ABM) can be the answer! It is estimated that 67% of brands utilize this type of marketing.

ABM takes the best elements of traditional relationship marketing and digital outreach strategies to turn prospects into paying customers. 

With an integrated set of targeting tactics and systems, ABM provides B2B SaaS founders with a unique way to acquire new business and nurture existing relationships. 

In this blog post, we’ll discuss how leveraging account-based marketing can help bring in real results for your business.

 

Definition of Account-Based Marketing (ABM) for B2B SaaS

 

Account based marketing (ABM) is a SaaS-based strategy that provides businesses in the B2B space with greater accuracy in targeting their ideal customers. 

Traditional marketing methods use broad demographics, but ABM enables companies to hone in on the exact organizations and individuals that are most likely to need their product or service. 

By personalizing communication and customizing offers, organizations no longer have to waste time and resources chasing leads that are unlikely to convert. 

Instead, they can use data and analytics to identify, target, and engage high-value prospects more efficiently. ABM can offer great insights into where B2B SaaS companies should strategically focus their efforts and accelerate revenue growth. 

In other words, ABM takes an individualized approach to bring prospects into the sales funnel faster.

This strategic practicality makes ABM uniquely appealing for maximizing growth in B2B SaaS sales by leveraging existing relationships and nurturing new ones. 

With its customizable message strategy, pinpoint account targeting, and multi-channel approach, ABM offers surefire performance for businesses looking to increase leads and drive growth.

 

Importance of ABM for B2B SaaS Companies

 

Here are a few reasons why leveraging ABM can provide huge benefits for B2B SaaS companies:

 

1. Team Alignment

 

ABM helps ensure that everyone from sales, marketing, and customer success is operating with a unified purpose. 

With a great team alignment, you can ensure your marketing teams understand your target buyers’ needs and how best to serve them, resulting in improved customer service and measurable ROI. 

According to a study, B2B firms that promote close alignment between their sales and marketing teams have seen 24% faster three-year revenue growth, as well as 27% faster three-year profit growth.

 

2. Cost-effective

 

ABM campaigns require a strategic and highly tailored approach geared towards specific key accounts, meaning that these campaigns can become pricey quickly. However, cost-effective measures keep the ROI of ABM programs in check without compromising overall effectiveness.

 

3. Decreased wastage

 

Waste can often be present in both resources and marketing efforts, and can severely reduce the ROI of campaigns. 

Keeping employee resource wastage to a minimum by only assigning resources to campaigns in which there are likely to be positive outcomes will help ensure cost-effective strategies.

 

4. Data-driven

 

By using data-driven insights, you will be able to create hyper-personalized ads, content, and messaging that target specific accounts more accurately at scale. This allows you to prioritize your valuable resources and send targeted messages to the right prospects – messages that are sure to land with those most likely to become customers.

 

5. Better customer acquisition

 

With ABM you can target the right accounts and individuals that are likely to need your products or services, making it easier to acquire more customers. 

This will also help increase customer lifetime value (CLV) as those acquired through ABM tend to stick around longer than those acquired through other means. In a survey, 80% of marketers report that ABM indeed enhances CLV.

 

6. Maximum use of marketing automation tools

 

Marketing automation tools will enable you to effectively manage all your ABM campaigns, including personalizing each one for your target accounts. 

With the help of automation, you can keep up with enormous volumes of data and quickly execute accurate segmentation. 

Furthermore, automation helps you analyze the performance of your ABM campaigns and adjust them in real-time while they’re running, something that can’t be done manually.

 

7. A faster way to close deals

 

ABM’s personalization and targeted outreach will make it much easier to identify and close deals. A study found that ABM can reduce up to 50% of the time typically spent on unproductive prospecting, which has historically caused sales to overlook 50% of marketing leads.

Consequently, by closing deals quickly, you can benefit from increased revenue generation and higher customer retention rates.

There are also long-term benefits associated with a faster way to close deals such as building trust between the business and its customers as well as establishing a strong foothold in the marketplace.

 

8. Higher ROI

 

By accurately pinpointing the right accounts, creating tailored campaigns that are tailored to those accounts, and tracking their performance, you can maximize your ROI on ABM campaigns. This will lead to higher conversion rates and better customer retention levels, bringing more revenue to your company. 

According to a survey, 76% of B2B marketers believe that ABM has a higher ROI than other marketing activities. Moreover, 60% of companies report at least a 10% increase in revenue within the first year of their ABM program.

 

9. Better reporting

 

With traditional reporting capabilities, organizations lack the insights needed to make decisions that will impact their bottom line and company growth. 

Investing in better ABM reporting capabilities, on the other hand, will enable you to segment accounts, measure ROI, track conversion rates and analyze competitive presence. 

This data can help understand how certain campaigns are impacting certain key accounts, regions, or industries and identify market trends.

 

10. Helps get closer to customers

 

ABM can help you to build closer relationships with your customers. 

By creating campaigns that are tailored to individual accounts, you can show customers that their business is valued and the messages you are sending are relevant to them. This will help form stronger customer relationships, boost customer loyalty, and create a better customer experience.

In fact, data show companies that have adopted ABM reported an 84% improvement in reputation and an 80% improvement in customer relationships, owing to features such as client service management, automated list generation, and customer notifications.

 

 11. Better customer engagement and retention

 

ABM is all about targeting the right prospects, growing the customer’s lifetime value, and having rich relationships with customers rather than simply acquiring new ones.

Keeping those customers engaged and reducing churn by providing excellent customer service is key to success in ABM. According to a recent study, marketers who are working with an account-based approach reported engaging twice as much with their C-level targets, at a rate of 30%.

Moreover, not only will happy customers help build word-of-mouth marketing and referrals, but their feedback can also provide valuable insights on how to improve your product.

 

12. Boosts conversion rates

 

ABM allows you to reach more potential customers, making better use of the resources you have available. Even a small increase in conversion rate can mean big gains in revenue and profitability when scaling.

Additionally, higher conversion rates indicate that people are connecting with an organization’s message and offers, which can improve customer loyalty and brand awareness. 

With ABM, you can target your offers to precisely match the needs of your most valuable customers, meaning your efforts are even more likely to result in increased conversions.

 

13. Increases contract value

 

What makes ABM so effective is its ability to drive up contract value, which in turn leads to larger, more profitable deals and better customer relations. 

The ABM Leadership Alliance reported an average increase of 171% in annual contract value (ACV) after implementing account-based marketing.

Increases in contracted value occur when firms are becoming familiar with new features and services that they might not have taken advantage of if they were just using traditional marketing methods. 

By getting an advantage over competitors through advanced products and services, ABM ensures higher revenues in both the short and long term.

 

 14. Improves consistency

 

Improved consistency facilitates greater accuracy and helps build trust between the company and its target accounts – leading to better results for campaigns. 

Consistency also allows you to identify issues and areas where improvements can be made as well as potential opportunities to boost performance in the future.

 

Steps on Leveraging ABM For B2B SaaS

 

Listed below are a few steps to leverage account-based marketing (ABM) in B2B SaaS companies:

 

1. Understanding Your Ideal Customer Profile (ICP)

 

ICP plays an invaluable role in ABM’s success as it allows you to gain an in-depth understanding of your ideal customer base. With ICP, you can define, understand, and reach the appropriate audience with tailored messages that resonate more deeply.

Instead of a “one size fits all” approach to marketing, ICP allows for targeted messaging based on metrics from across channels that improve brand engagement and ultimately drive measurable ROI.

It’s critical to understand the ‘who’ and ‘why’ to get the most bang for your buck. Ultimately, you want to engage with companies that earn revenue and have a need that is solved by your product.

An ICP should not just include standard demographics like job titles, revenue, industry, etc; it should also include qualitative attributes such as how customers perceive and interact with your brand. To do this effectively, look at customer feedback surveys, customer interviews, and usage data from within your product.

Lastly, depending on the size of the target market you are going after, define thresholds for the volume/value of potential customers you want to target so you don’t spread resources too thin.

 

2. Identifying Target Accounts

 

Determining which accounts are worth focusing your attention on is key to ensuring that limited resources are being allocated to the most effective and worthwhile opportunities. As such, careful consideration should be given to how you identify high-value prospects whose needs, values, and company information aligns with your own.

There are a variety of criteria to consider when identifying your target accounts, such as:

  • company size
  • customer goals
  • feelings/needs
  • opportunities for success
  • customer lifetime value (CLV)

Making sure that the target customer has tangible needs that your SaaS can fulfill is essential. After identifying potential accounts it’s best to prioritize them by factors such as CLV and existing relationships with the vendor.

Doing research on the company, its pain points, and what they’re looking for should also be taken into consideration to ensure that your message is targeted to the right person with just the right amount of relevance.

There are also multiple tools and resources available to help you easily find target accounts for your ABM campaigns.

For instance, through CRM data insights, you can quickly assess the profitability of certain accounts and use this as a basis for choosing appropriate targets.

Additionally, predictive analytics technologies can recommend actionable insights from large datasets that assist with decision-making along targeting criteria such as industry, market size, or region.

 

3.Crafting Personalized Messaging

 

Not only does personalized messaging create a more positive customer experience, but also help ensure the content resonates with them and effectively communicates why your business offers superior value. Marketers who were surveyed by Forrester indicated a strong agreement that personalizing content (56%) is the primary element in ensuring ABM success.

To optimize personalization efforts:

  • Take time to consider what actionable insights can be revealed by analyzing various customer data points like purchase history, demographics, online behavior, and surveys. For example, if you know that a customer has previously purchased a particular product, mentioning this in your messaging can allow you to further emphasize the value of your solutions
  • Conduct research into the specific needs and wants of each individual account. This will help you to create tailored messages that are more effective and better aligned with their goals.
  • Invest time into creating an engaging narrative for each target account. A powerful story that resonates with the customer and is backed up by relevant data points can help to make them more likely to engage with your brand.
  • Incorporate visuals into your content to create a more immersive and memorable experience.
  • Deliver messages through multiple channels such as emails, calls, events, social media platforms, etc., in order to make sure you’re reaching accounts wherever they are.

 

4.Choosing the Right Channels

 

Defining the right channels for ABM requires you to be strategic and ensure that it aligns with your overall marketing plan.

When considering which channels to use, you should:

  • Determine if the tactic includes personalization and if the account profiles are vetted correctly.
  • Decide which channels are best for delivering personalized messages, such as email and direct mail campaigns. When positioning yourself to reach multiple decision-makers within an organization consider using a combination of social media and email outreach, as well as targeted display advertising placements.
  • Look into options that can enhance the customer experience and build trusts, such as video conferencing and one-on-one meetings.
  • Choose channels that are cost-effective and can help reach the target accounts in an efficient manner.
  • Assess how you will measure success and how often you will monitor performance in order to ensure that your ABM strategy is successful.
  • Understand the customer journey. When ABM strategies are used in combination with customer journey analytics, you will have a better picture of how prospects interact with your product and understand the process of their purchase decisions. Knowing exactly where your customers are located and what journey stages they are in enables you to craft relevant messaging and route them down the most effective path toward conversion.

 

5. Building a Multi-Touch Campaign

 

Multi-touch marketing campaigns involve using multiple tactics to reach and engage with potential customers through different channels. These campaigns often use techniques such as email marketing, social media, webinars, and other online platforms to effectively draw in new leads from diverse target markets.

By engaging potential customers at multiple points throughout their buying journey, you can create deeper relationships with them, increase awareness about the product or service being offered, and ultimately drive conversions with retargeting.

To build an effective multi-touch campaign, it is essential to:

  • Craft a personalized message through email and social media campaigns with content tailored to the individual buyer’s need.
  • Reach out as many times as needed – you never know when a buyer will be ready to act.
  • Utilize hybrid tracking systems that give visibility into which tactics are performing best and adjust campaigns accordingly.
  • Balance acquisition tactics and messages with ongoing nurturing activities like regular check-ins or valuable resources such as free trials, webinars, or ebooks.

 

6. Measuring and Analyzing ABM Success

 

ABM success metrics will vary depending on the company, but they generally include:

Engagement statistics

  • clicks
  • opt-ins
  • website visits

Pipeline and deal statistics

  • opportunities created
  • deals closed

Brand awareness measures

  • sentiment surveys
  • trade show participation
  • social media reference counts

Tracking these key ABM metrics allows you to:

  • Identify gaps in performance and make timely adjustments in order to maximize the return on their efforts.
  • Provide a tangible overview of the progress of both the marketing team and senior leadership.

With successful ABM campaigns come higher conversion rates, increased leads, greater deal sizes, and improved customer loyalty – all clear benefits that demonstrate the effectiveness of measuring key ABM metrics.

While measuring ABM success is not an easy task, there are tools and resources available to help you track and analyze performance. For example, marketing automation platforms such as HubSpot provide an all-in-one solution for tracking and optimizing ABM performance.

With a good ABM toolset, you can track customer results in real-time, monitor leads generated, analyze website interactions with prospective accounts and measure return on ad spend in detail. Additionally, they can connect these numerical results with qualitative measures like surveys or customer interviews to gain a complete picture of whether their ABM efforts were successful.

 

Challenges and Solutions

 

Implementing ABM for B2B SaaS companies is a critical but often overlooked part of their success. Although it yields amazing results and can be a great way to nurture customer relationships, it comes with its own set of challenges. These range from figuring out what to optimize and measure, to understanding which tactics are effective and how to ensure high-quality outcomes. Ultimately, you need to have an in-depth knowledge of your target accounts and industry trends in order to make sure they achieve success with ABM.

Below are a few challenges you need to overcome:

  1. Limited Resources: Many B2B SaaS companies lack the resources needed to effectively implement an ABM strategy. In this case, it is important to focus efforts on the most promising accounts and prioritize those that have a higher likelihood of conversion.
  2. Determining Key Metrics: Without clear metrics for measuring success, it can be difficult to determine whether ABM efforts are paying off. To counter this, you should identify key metrics as well as benchmarks for measuring performance.
  3. Data Accuracy: The success of an ABM campaign relies on having accurate and up-to-date data about the target accounts. You need to ensure that the data they use is valid and up-to-date in order to maximize their efforts.
  4. Keeping Track of Multiple Accounts: With ABM, you need to keep track of multiple accounts simultaneously which can be a challenge. To address this, you should use tools such as customer relationship management systems to ensure that they are tracking each account properly.
  5. Complex Technology. You must understand the intricacies of integrating old and new technologies into the sales cycle, leveraging data insights that can create a cohesive strategy across multiple platforms.

Ultimately, the key to overcoming these challenges is developing a strong foundation of business intelligence that builds a roadmap for future implementation. 

While ABM can provide B2B SaaS with a competitive edge and customer-tailored services to boost sales, managing target accounts along with each one’s individual sales cycle requires time, effort, and focus from the business.

To overcome these challenges, the most effective approach for you is to carefully deploy your technology in such a way that is designed to qualify leads effectively before focusing on customer service. 

Data show 68% of ABM programs started within the last five years are taking advantage of automated processes. By automating processes like customer lifecycle management and lead scoring, you can reap more rewards from each marketing campaign while streamlining your workflow.

 

Final Thoughts

 

ABM involves a targeted approach to marketing that focuses on individual accounts instead of targeting an entire market. 

It can be a great way for B2B SaaS companies to nurture customer relationships, increase conversions and drive revenue. However, it does come with its own set of challenges such as limited resources, determining key metrics and keeping track of multiple accounts.

The key to success with ABM is developing a strong foundation of business intelligence and deploying technology in the right way to automate processes that support customer lifecycle management. 

By doing this, you can ensure that your efforts are focused on individual accounts and set yourself up for long-term success.

If you need more tips to grow your SaaS, don’t forget to check out our blog.

 

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Ken Moo
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