MythBusters: ABM Edition (Part 3)Rachel Miller / August 06, 2018 / 0 Comments
To completely understand ABM, it’s important to take into account the complexity, attention to detail, and hard work that is necessary for success.
In the final part of this blog series, we will discuss the last four myths that cover the “Trough of Disillusionment”, efficiency, scalability, and ABM longevity. This post wraps up our journey on the 10 misconceptions of ABM, here’s where we busted myths 1-3 in Part 1 and myths 4-6 in Part 2.
With that being said, let’s jump into it!
Myth: #7 Any Organization Can Run ABM
The hard truth is ABM is not meant for everyone. It takes a monster budget and dedication that not everyone has. Commitment is crucial when first starting out because of the challenging implementation. Some organizations might not be skilled enough in ABM and many will be uncomfortable seeing their numbers shift so dramatically.
This rough patch can be deemed “The Trough of Disillusionment.” Once in this trough, perseverance and desire must peak in order to climb out of the pit. The image below demonstrates the path that an organization treks after the addition of ABM.
Remember that business type is an important thing to consider during your transition. For example, healthcare and e-commerce often should not run ABM due to their strict business-to-consumer format. Their products reach an abundance of people, therefore making it nearly impossible to market to individual accounts. However, car manufacturers fall perfectly under ABM’s strategy. There is a limited amount of automotive companies, hence making it easier to address their direct market and sell to a specific account.
If trying to decide whether or not you should implement a new kind of marketing, determine which accounts could benefit from the change and which ones would not. If your organization does not have the budget or accounts for ABM to be successful, then it might not be a right fit.
Myth: #8 ABM is Efficient
Efficiency can be defined as attaining the most productivity with the least wasted effort. From a time, labor, and resource standpoint, ABM is in fact completely inefficient. The process of starting ABM, implementing it correctly, and making a profit is not a quick turnaround time.
Effort may not be wasted, but you sure do need a lot of it to run ABM efficaciously. An explicit skillset is needed by consultants and salespeople. The training that these workers must endure can be costly again making ABM inefficient. Lastly, ABM cannot go un-resourced. Without paying close attention to detail, ABM will not show the desired results. Constant modifications are needed in each account in order to achieve the set goals.
Although there are many components in ABM, the outcomes can be extremely effective if given the needed exertion. ABM may not be the most efficient approach, but if there is time and energy present, then ABM can be implemented successfully.
Myth: #9 ABM Can Be Done at Scale
Running a company’s processes at scale is an important part of a business. Getting a product out to as many consumers as possible in a timely and recurring manner is the heart of scalability. The level of expansibility differs amongst the range of business models being run.
Let’s use a simplistic business model for example. When providing a specific product or a service, like a painter, the quantity of customers is limited, and it is more than likely a one-time deal. Because of the inability to effectively, efficiently, and consistently reach a large target of people and sell the product, this independent painter business model is less scalable than others.
On the other hand, consider a brand like Netflix, who has access to an insane number of consumers that pay for their product in a recurring manner. This business cycle is very scalable because of the vast number of consumers and the constancy of purchasing every month.
With this in mind, we can apply these principles to see how ABM is inherently not scalable. Due to limited available customers and the immense time and effort put forth, scalability is not feasible. However, repeatability is where this concept can be applied. Since so much time and energy is put into constantly perfecting strategies, this enables companies that run ABM to reuse tactics with similar clients and replicate the cycle.
ABM can be a repeated approach, but not done at scale.
Myth: #10 ABM Stops When the Deal is Closed
If you could ask Smalls from the Sandlot how long the process of marketing and sales lasts, he would respond “For-ev-er.” That’s right, even after closing a deal with a customer, the cycle continues.
When running ABM, each account holds a strong significance for the organization, meaning a good relationship must be held long after the contracts are signed. Remaining in contact will make them feel like they made the right decision and want to resign again in the future. Showing above-and-beyond effort will leave a solid impression on your customers and your name will spread to other high-value accounts from word-of-mouth.
The key to success to have a great reputation with the accounts you are working with and potential accounts that fit your ICP. Holding yourself accountable to preserve these strong bonds is essential for keeping these quality accounts.
That’s it, our 10 ABM myths busted and broken down! By now, you’ve learned that ABM is not run as easily as most of us think it is. Luckily, you have us to help! Agree? Disagree? We want to hear from you. Give us a holler on Twitter if there’s a myth you’d like us to bust. Otherwise, you can find the rest of our series here: Myths 1-3 in Part 1 and Myths 4-6 in Part 2.