The 3 Different Types of Account Based Marketing (ABM)
Marketing leaders widely recognize that Account Based Marketing (ABM) plays a crucial role in driving revenue growth for B2B companies. Why? Because ABM allows companies to allocate their marketing resources more effectively. The goal is to focus on customer segments that have the highest likelihood of converting into a client or strengthening the relationship of an already existing customer. This article will provide an overview of the three primary types of ABM, including real-world examples.
There are three types of ABM. They are dependent on the number of targeted accounts, as well as the strategic and financial value of those accounts. According to Momentum ITSMA’s annual ABM Benchmarking study: Elevating ABM: Building Blocks for Long-Term Growth almost half of all programs include some combination of types to help balance breadth and depth with priority accounts.
- One-to-one marketing, also known as Strategic ABM, targets a single, high-value account.
- One-to-few marketing, or ABM Lite, targets a small number of accounts with similar characteristics.
- One-to-many marketing, known as Programmatic ABM, targets a larger number of accounts through automated, data-driven methods.
IMAGE HERE — THREE TYPES OF ABM
One-to-One Marketing (Strategic ABM)
Companies use One-to-One Marketing, also known as Strategic ABM, to target high-value accounts. The objective of this strategy is to strengthen and expand relationships with key customers.
First, sales, marketing, and executive teams must collaborate to identify one to five accounts with unique and identifiable needs. Then they can develop highly customized, hyper-targeted account marketing plans for these specific accounts.
Hyper-targeted marketing involves reaching out to customers and delivering personalized messages at the right time.
Creating buyer personas is an important aspect of hyper-targeted account marketing. It allows for thorough research and understanding of customer’s goals, personal profile, and buying journey.
One-to-One Marketing is resource-intensive and time-consuming, as it focuses on a single customer over an extended period. We recommend this approach for businesses that have a significant budget, a dedicated team, and existing high-value clients.
One-to-Few Marketing (ABM Lite)
One-to-Few Marketing, or ABM Lite, is a targeted approach in which marketers focus on a smaller group of accounts. Sometimes they are referred to as tier 1 or tier 2 accounts. The sales and marketing teams collaborate to select five to ten target accounts that have similar challenges, goals, and needs.
This type of ABM strategy involves creating and grouping ideal customer personas, profiles, and segments. Learn more about how you can segment your Total Addressable Market (TAM) (internal link TO BE ADDED). Then content is customized for each target group. Marketing leaders often refer to this process as ABM Lite because it requires fewer resources compared to one-to-one marketing.
One-to-Few Marketing is suitable for companies with more flexible budgets and the ability to add additional tools and team members as needed. Businesses looking to generate leads with a smaller group of target accounts find this approach well-suited for their needs.
One-to-Many Marketing (Programmatic ABM)
One-to-Many Marketing, or Programmatic ABM, is an approach that involves targeting a large group of accounts. Marketing professionals will categorize them based on their business needs, goals, and challenges. To achieve this, companies can consider factors such as customer demographics, internet browsing activity, ad delivery, and geolocation.
Marketing teams use CRM software or marketing automation tools to group and segment these accounts. They then create customized content for each group of accounts, based on factors including industry, area of expertise, or company size.
Programmatic ABM leverages the power of personalization. It differs from the other two methods because it does not require as much time and financial resources. Smaller companies with limited budgets find this approach well-suited for their needs. It allows them to reach a larger audience with a more cost-effective strategy. One to many can be a good starting point for outbound campaigns that are meant to reach out to broader customer segments.
In conclusion, Account Based Marketing (ABM) is a crucial factor in driving revenue growth for B2B companies as it allows for more effective allocation of marketing resources by focusing on customer segments with a higher likelihood of conversion. One-to-One Marketing targets a single, high-value account, while One-to-Few Marketing targets a smaller group of named accounts. One-to-Many Marketing targets a larger group of accounts through automated, data-driven methods. Each type of ABM has its own unique set of benefits and challenges. Businesses must carefully consider their own goals, resources, and target audience when selecting the right approach for their needs. At S2M Group we support our clients with all three types of ABM, depending on their unique needs a strategy we develop an offer that is flexible. Find out how we can support you.