Can Account-Based Marketing Win New Business?

Account-Based Marketing (ABM) is primarily used to make good relationships even better—the second honeymoon of an already solid marriage. By treating ABM accounts as essentially markets of one—developing a deep understanding of customers’ business issues and forging close relationships with their people—companies can win more incremental revenue and become preferred providers.

However, fewer companies have tried to use ABM to win the hearts of customers that belong to others. Is it a relevant strategy for winning new business? Indeed, this was the prime focus of ITSMA’s recent ABM workshop in London.

Make the Right Choice from the Start

The biggest benefit of ABM in this context is understanding what you are getting into—perhaps the most critical element of any relationship. The benefits to be gained from an ABM-style approach to researching potential customers and their wants and needs should not be underestimated. The account selection process at the core of ITSMA’s ABM methodology reveals the attributes that determine whether customers will have true long-term value.

All too often companies choose new accounts based on the potential revenue the sales manager believes they can generate and how desperate the organisation is to break into that “must have” account. Little thought is given to other elements such as the cultural fit of your organisations the potential competitive strength of your organisation within the prospect, and any previous experience either side may have of the other. Using the ABM approach, you take away some of the subjectivity by using tools to objectively score and rank potential targets, leading to prioritisation.

Reveal the True Customer Requirements

The research stage of ABM is particularly valuable in penetrating new accounts. Only by carrying out this in-depth research of the organisation, its competitors, and the market in which it is operating can you begin to understand the true requirements of the prospect and begin to formulate appropriate plays or propositions to help you open the door. The formalised approach to the research stage presented in the ABM methodology allows you to improve your potential position with prospects via thorough profiling and a deep understanding of what drives their businesses.

Avoid Wasted Effort

ABM requires that your internal stakeholders all agree that the selected accounts have real value. This does not mean merely all salespeople, but stakeholders within various functions and at various levels within your organisation. By obtaining this buy-in at the early stages, you can be assured that everyone acknowledges the potential of the prospect and therefore is more likely to assign the necessary resource and provide the necessary support, making success at the steps that follow considerably more achievable.

Clearly there are areas of the ABM methodology that are not feasible when you’re trying to enter a new account, such as customer engagement at the research stage and verification with the customer through the scenario planning stage. But there remain major benefits for following this methodology, not the least being account selection, gaining internal buy-in, and the knowledge generated through the research stage.

Are you using ABM to penetrate new accounts? Let us know by emailing 18 at ckoch@itsma.com.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as Avaya, BT, Cisco, Deloitte, Hewlett-Packard, IBM, Microsoft, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.