Posted in Marketing and Strategy Terms, Total Reads: 1296
A 1:1 marketing concept in which companies focus on each individual customer. It is a move away from mass marketing where the focus is on reaching as many customers as possible to a situation in which instead of the number of customers, it is the quality of each customer “account” that matters.
Instead of selling individual products to as many new accounts as possible, companies concentrate on selling as many products as possible to one customer at a time.
Accounts play a key role in expanding business with already existing customers. In these cases, wide advertising approaches may not be effective in targeting customers who have specific needs. Although the initial costs in setting up and maintain an account may be higher than a mass-marketing approach, the long-term-value of the customer is usually very high. Account-based marketing helps existing customers stay updated with all the new product propositions of the company. Account-based marketing can be specifically targeted at the right audience and is more likely to be considered relevant.
Account-based marketing requires very cordial working relations between sales and marketing teams. The mutual feedback between them results in a synergy that helps them to serve customers better, for this, they often conduct joint workshops. Information plays a key role in his kind of marketing.
e.g., the marketing of Enterprise resource computing (ERP) tools by software vendors such as SAP to IT companies.