The 80/20 rule is nothing new for B2B marketers. By now, you have probably heard many variations of the 80/20 rule. Whether it be 80% of your results come from 20% of your effort, or 80% of sales come from 20% of your products or your top 20% of accounts represent 80% of your profit. Vilfredo Pareto, the Italian economist who coined this rule, also known as the Pareto Principle, did not create this idea for marketers in the late 1800’s; instead, it was first meant to show land ownership in Italy, noting that 80% of the land belonged to only 20% of the country’s population.
However, the rule has since been adopted by modern day B2B marketers in manufacturing and life sciences in order to get the best return on their sales & marketing investments. Rather than spreading valuable marketing budget across thousands of prospects and customers, the most profitable ABM programs go deep with cross-sell campaigns on the 20% of key accounts that already generate 80% of revenues.
Account expansion ABM use cases in manufacturing include new product launches, cross selling a strategic solution following an acquisition, solution-based selling, regional and international expansion, renewal, upgrades and even Corporate communications around the CEO story, sustainability and brand positioning.
Mature global enterprises have a significant profit opportunity in cross-selling new product lines within their key accounts. However, with email marketing alone, this won’t work because it only reaches the known contacts that are already in the CRM -at best. It does not reach the extended buying committee and unknown buying groups that have grown so much in recent years.
Incorporating a modern IP based ABM platform, omnichannel marketing, and utilizing the 80/20 rule is the optimal way to prioritize and go deep on target accounts across all digital marketing channels.
With the pandemic still looming, most of us have been forced to review our sales and marketing budget allocation away from trade shows and events and towards digital engagement channels. Now is the best time to put the 80/20 rule in effect and rethink target account strategies with a measurable omnichannel ABM plan.
Let’s look at the 80/20 rule from this perspective, you probably already get 80% of your revenue, pipeline and marketing engagement from 20% of your accounts. By doubling down with an omnichannel ABM account expansion strategy, you can improve sales & marketing ROI considerably.
A Forrester survey in 2019 examined over 120 global B2B marketers in order to understand how they were using ABM. The results showed that a majority of responders now focused their ABM efforts on a fewer number of accounts, resulting in a positive impact in relationships, expansion of business opportunities and overall, improved measurable impact with existing accounts rather than try to garner new accounts.
Enterprise B2B marketers have found that going deep on their top key accounts, engaging the extended buying committees and expanding revenues with new products and services is proven to be more profitable than winning net new accounts.
Early last year, Gartner released a research report showing that CMOs are adapting to the COVID-19 pandemic by reducing and even halting lead generation efforts in order to prioritize closing late-stage deals and strengthening relationships with current customers.
IP-based account sensing technologies help marketers prioritize key accounts who are most likely to buy based on known and unknown buyer engagement. Examining the 80/20 rule and ABM, we’ve noticed the most profitable ABM programs focus on existing accounts using first party anonymous buying intent data, leading to dramatic increases in both marketing engagement and sales growth. Focusing on the 20% of your accounts will help you cut marketing wastage, improve key account experience, and cross sell new strategic product lines efficiently.
In 2021, incorporating the 80/20 rule with an omnichannel ABM strategy presents an unparalleled opportunity for profitable growth. A year removed from cancelled in-person events and trade shows, shifting priorities, changing marketing and sales budgets, and the frenzied rush to go digital, now is the time to go all-in on digital account-based marketing and selling.
The complexity of digital marketing will continue to grow, meanwhile B2B marketers are being tasked to pursue new corridors to recovery and growth; it is imperative they make the shift toward integrating new ABM technology platforms to maximize the ROI from their marketing and sales investments and align their marketing initiatives with the CEO’s vision.
Today is the best time to be a B2B marketer, it’s time to go deep on your key accounts with omnichannel digital account-based marketing.