Inverting the Triangle: How Account-Based Marketing Insight Can Support Sector Marketing

Recent conversations with ITSMA members in Europe reiterate the fact that technology services companies are doing business in a buyers’ market. Buyers are demanding that potential suppliers have deep insight into their specific business problems, and yet—and yet—they are reluctant to seriously commit to any one provider, as evidenced by the decreasing number of mega-deals signed over the past few years. (According to ComputerWire, the number of deals with a value of more than £1 billion fell to 15 in 2005, down from 25 in 2004 and 29 in 2003.) Multi-sourcing seems to be on the rise as buyers hedge their bets.

Despite the decreasing number of large deals signed, however, anchor accounts are as critical as ever, particularly because collaboration with key clients can lead to new offer development, as well as references that prime the sales pipeline. And total contract value is still dominated by the larger deals. This leaves providers torn between two approaches to marketing: find and engage with customers and prospects that are likely to deal big, or line up to take advantage of smaller or multi-sourced opportunities.

But there might be a better way. What if you could use an account-based marketing (ABM) strategy for high potential clients and large deals, while maintaining a broader approach to pick up some of the smaller opportunities with lower-potential clients?

At ITSMA, we think that the answer might lie in inverting the sector marketing triangle. So far, ABM has largely been an add-on for sector marketing teams, which have struggled to add pilot projects to their already heavy workload. The predominant approach continues to rely on sector-based research, value propositions, and go-to-market programs driving opportunities. This approach is represented graphically in Figure 1.

Figure 1

As more and more marketers are asked to build ABM programs for key clients, they will find that by analysing their priority accounts for an ABM approach, they will gain knowledge around the overall industry environment, key industry success factors and KPIs, and common issues in buying or competitive dynamics. This knowledge will provide a platform for the broader industry propositions and sector marketing programs, making ABM a truly integrated element of their sector marketing approach, as represented by Figure 2.

Figure 2

In this inverted model, marketers can better leverage their ABM efforts as well as create tighter integration between marketing and sales in the sector because the relationship will be built on a commercial focus and driven by results at the account level. Ultimately, this approach will put the company in a better position to profit both from the large deals and the smaller, multi-source opportunities.

—Bev Burgess, info@itsma.com

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About ITSMA
ITSMA specializes in helping companies market and sell services and solutions more effectively. As a membership organization, we provide research, consulting, and training to the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.