Account Based Marketing Tops Key Account Management
- By John Bernardi
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- 03 May, 2022
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Developing and Managing a Customer Asset Portfolio is the Goal
Key account management is always “ground under repair” when the executive sponsorship, strategy, patience, perseverance, skills and KPIs necessary for nurturing these assets are missing from the program. Instead, Account Based Marketing [ABM], a sustainable strategy for managing and developing customer assets, will elevate your customer portfolio to a new level of ROI when you manage it in a way that is similar to how you optimize other company assets.
A customer asset management team including members from sales, marketing, finance, support, engineering and R&D maintains a pulse on the health of the ABM program. They align customer facing resources and build peer level relationships with each account. They assign customers to multi-faceted account managers with the technical, financial and professional competencies required to develop and execute account plans. They set goals for the number of Most Valuable Customers (MVCs) and Most Growable Customers (MGCs) in the customer asset portfolio over a rolling time horizon. They wisely ration resources based on account ratings.
Account Ratings Justify Resources and Standardize Terminology
The ABM Program Treats Each Account Differently Based on Its Rating
- MVCs have a high lifetime value [LTV]. Along with a frequent, repetitive pattern of profitable multi-line/service engagements they provide referrals and collaborative assistance in designing new products and processes. A strong association with their brand enhances your brand. Your company is well-positioned within their organization both technically and politically. They tell you what you need to do. There is no guesswork.
- MGCs have high potential to become MVPs. Your company is building a partnership that complements its technical position.
- STCs [second tier customers] fit one or more of your targeted personas and meet minimum profitability requirements. They always consider your company when they have a need for your category of services, but they do not present an opportunity to become MGCs. You retain them through marketing and contact center programs and processes. Sales reps may become engaged with sales ready leads [SRLs].
- Below Zero Customers (BZs) are price shoppers with a low credit rating and have no desire to build a relationship with your company. They do not justify the expense involved in serving them. The goal is to encourage them to become someone else’s customers.
