How to Budget for Account-Based Marketing Programs
by Brian Cooney | Last Updated: Aug 4, 2022
Account-based marketing (ABM) is a type of marketing that focuses on key accounts and developing relationships with specific decision-makers within those organizations. ABM aims to generate more revenue from fewer customers by tailoring campaigns specifically to each account.To succeed with ABM, you need to understand your target market and ideal customer profile clearly. You must also know what kinds of programs and activities will appeal to your target accounts. Once you have this information, you can develop a budget for your ABM program.The first step in budgeting for ABM is to identify the costs associated with each stage of the account lifecycle. These costs can vary depending on the size and complexity of the account. For example, the prices of acquiring a new customer may be higher than the costs of retaining an existing customer.Once you have an understanding of the costs associated with each stage of the account lifecycle, you can develop a budget for your ABM program. To do this, you will need to consider the following factors:
The number of target accounts: The number of target accounts you plan to focus on will directly impact your budget. If you have a limited budget, you may want to focus on a smaller number of accounts that are more likely to generate revenue.
The size of the target accounts: The size of the target accounts will also have an impact on your budget. Larger organizations with more complex purchasing processes will require more resources and investment than smaller organizations.
The level of engagement: The level of engagement you plan to achieve with each account will also affect your budget. For example, if you plan to conduct face-to-face meetings or events, you will need to factor in the costs of travel and accommodation.
The duration of the program: The length of the program will also impact your budget. If you plan to run a long-term program, you will need to factor in the costs of sustaining the program over time. Once you have considered all of these factors, you can develop a budget for your ABM program. To do this, you will need to identify the total cost of the program and then allocate funds to each stage of the account lifecycle.
By using these factors, you can develop a budget that will allow you to effectively execute your account-based marketing program. Doing so will help you to generate more revenue from fewer customers and ultimately grow your business.
What are some examples of ABM expenses?
The following are some examples of ABM expenses:
The cost of acquiring new customers: This includes the cost of developing targeted marketing campaigns, as well as the cost of sales and marketing resources such as lead generation and account management software.
The cost of retaining existing customers: This includes the cost of customer success resources such as customer support and training, as well as the cost of loyalty programs.
The cost of engaging with target accounts: This includes the cost of travel and accommodation for sales and marketing team members, as well as the cost of events and other promotional activities.
The cost of sustaining the program over time: includes the fees of ongoing marketing and sales efforts, as well as the costs of research and development.
The cost of measuring success: This includes the cost of data analysis and reporting tools, as well as the cost of hiring consultants to help evaluate the results of the program.
These are just a few examples of the types of expenses you may incur when budgeting for an ABM program. When developing your own budget, be sure to consider all of the factors that will affect the cost of your program when creating your ABM strategy.
What are some common mistakes people make when budgeting for ABM programs?
One common mistake people make when budgeting for ABM programs is failing to consider the costs associated with each stage of the account lifecycle. As a result, they may end up under-funding certain stages of the program and ultimately hampering its success.Another common mistake is failing to allocate enough resources to larger accounts. These accounts typically require more investment and may be more complex to manage, so it's important to factor this in when developing your budget.Finally, people sometimes underestimate the duration of an ABM program and fail to allocate enough funds to sustain it over the long term. By carefully considering all of these factors, you can avoid making these mistakes and develop a successful budget for your account-based marketing program.Budgeting your ABM can be difficult, but at the end of the day, it will make your program so much more successful. You don't want to under or overfund your program, so make sure to use these ABM tactics to help you out!