ABM: The Tool for Enhancing Customer Engagement

This article presents content originally published in Design Mind, the design journal operated by frog, under the supervision of Mr. Noriaki Okada of Dentsu BX Creative Center.

<Table of Contents>
▼What is the Best Way to Reach Customers Now?

▼What is ABM for B2B Companies?

▼Why is ABM Important for B2B?

▼6 Reasons ABM Can Transform B2B Business

▼Technology Decisions Should Also Be Based on ABM

In recent years, customer expectations of companies have shifted across all industries. The service sector, in particular, is a vital (and undoubtedly the largest) driver of global economic growth. Many companies within this broad service industry are also exploring new ways to meet evolving customer needs. Today, numerous subsegments within the service industry support the vitality of B2B (business-to-business) markets, including engineering, procurement, construction, transportation, distribution, and professional services.

A key challenge many B2B companies now face is how to effectively communicate and demonstrate their value while resonating with customers. They are beginning to realize that a simple, one-size-fits-all approach is no longer sufficient.

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What is the optimal way to reach customers today?

In today's highly fluid era, significant shifts are possible. Therefore, fundamentally rethinking market entry strategies is crucial. Let's eliminate corporate slogans full of jargon and pose a clearer, more direct question: "What is the optimal way to reach customers?"

The answer, in fact, is simple and fundamental: "Go meet the customer." This is precisely where the true value of Account-Based Marketing (ABM) shines.

What is ABM for B2B companies?

At frog, we are always seeking the latest tools to help our clients achieve their goals. That's why we're focusing on ABM. ABM is one of the key tools for solving major challenges that service industries, and other industries, are likely to face.

ABM is a market entry strategy that focuses on high-value companies (accounts) and approaches them through customized marketing and sales initiatives. By leveraging ABM, marketing and sales teams collaborate closely to select priority accounts. Tailored initiatives allow these accounts to be nurtured, generating revenue and strengthening relationships.

In essence, ABM transforms marketing by shifting focus from broadcasting uniform messages to a broad audience to targeting specific customers. It creates opportunities to develop and deliver content that is more relevant and tailored to those customers.

Why ABM is crucial for B2B

To achieve a better customer experience (CX) in B2B business, it is essential to empathize with the challenges customers face and market directly to decision-makers in a customized, appropriate manner. This involves effectively combining digital and human touch to reach customers when and where they want to be reached.

Implementing ABM enables the entire organization to shift its focus toward nurturing relationships and engaging customers in a more personalized and meaningful way.

Furthermore, regardless of size, it's not uncommon for B2B companies to take several months to close a deal. However, remember that the seemingly complex B2B sales process is actually built upon a very human element: a win-win relationship.

By focusing ABM on high-value accounts and executing personalized campaigns tailored to each company's unique needs, you can more easily raise awareness of your company and drive inquiries. Collaboration between marketing and sales teams enables seamless engagement with target companies across departmental boundaries, resulting in the development of valuable relationships with prospects and desirable organizations.

6 Reasons ABM Can Transform Your B2B Business

① High Return on Investment (ROI) and Business Outcomes
Reports indicate that companies implementing ABM see a 97% increase in ROI, with deals closed with acquired target companies averaging 2.3 times larger than those from other channels. Furthermore, the sales cycle to close these deals is, on average, over 30 days shorter than for organizations not using ABM. By strategically allocating resources and focusing on high-value prospects, the sales process accelerates, enabling more efficient acquisition of new customers and retention of existing ones.

②Enhanced Customer Engagement and Loyalty
ABM provides marketing teams with the opportunity to create more relevant content for specific target customers, rather than sending a uniform message to a broad audience. Achieving this level of "personalization" requires a human-centric approach. This, in turn, builds stronger relationships that enhance trust in the brand and lead to increased customer engagement and loyalty. 83% of companies report that the greatest benefit gained from using ABM is improved engagement with target companies.

③ Time and Cost Efficiency
ABM requires collaboration between marketing and sales teams throughout the entire process—from defining the Ideal Customer Profile (ICP) and selecting target companies to closing deals. Strengthening internal collaboration yields quantifiable benefits. Companies where sales and marketing teams collaborate effectively see a 208% increase in revenue generated by marketing. By holding both teams accountable to the same goals and metrics, they acquire higher-quality leads and use time and resources more effectively.

④ Strengthening Collaboration and Cooperation Within the Organization
Traditionally, the relationship between marketing and sales teams involved marketing employing "strategy" and "tactics" to acquire as many leads as possible. Marketing then handed over leads deemed promising through their activities to the sales team. The sales team then handles outreach and conversion. The sales team was not involved in the initial marketing strategy, and the marketing team was not involved in the sales strategy. However, to succeed with a data-driven ABM approach, it is essential for both teams to collaborate and work together continuously and cooperatively to gain engagement with target companies, rather than simply passing the baton from marketing to sales and proceeding sequentially as before.

⑤ Personalized Content Tailored to the Target
Personalization is the cornerstone of ABM strategy. Preparing appropriate content and messaging tailored to the target demonstrates that your company understands the target company's needs and is a trustworthy partner. However, creating content that aligns with the actual target company, the envisioned customer profile (persona), or the needs at each stage of the product or service purchase process requires significant time and resources. This is precisely why proper target definition is so crucial.

⑥ Building the optimal ABM technology stack
The marketing and sales teams have successfully collaborated to create personalized content for target companies. The final piece of the puzzle is building the right ABM technology stack (a combination of tools working together to achieve specific goals) to enable the marketing team to reach as many target companies as possible. Typically, this involves supplementing the existing technology stack a company already possesses with one to three new software solutions. If the budget allows, purchasing dedicated ABM tools that effectively support ABM is also a viable option.

Technology decisions must be ABM-driven

With all this in mind, there's one more crucial point not to overlook: technology decisions should be driven by the ABM strategy, not the other way around. Within ABM initiatives, it's essential to focus solely on those measures that are effective for your company's business goals.

For B2B companies, there's no reason not to ride the ABM trend. An ABM approach enables more clearly targeted, differentiated marketing for each specific audience. At frog, we provide support for implementing ABM and achieving other business objectives. If you're interested in ABM, please feel free to contact us.

This article is also published in the web magazine "AXIS".