In healthcare technology, traditional marketing and sales approaches are falling short. Many companies are turning to Account-Based Marketing (ABM) to drive growth and revenue. ABM is a strategic approach that aligns sales and marketing efforts to focus on high-value accounts, delivering personalized experiences to key decision-makers within those accounts.
At the recent Healthtech Marketing Summit, Ben Person, CEO of Tenon, and Kelly McDermott, CMO of Caregility, shared their insights on why ABM should be a priority for healthcare technology companies. The session, moderated by Adam Turinas, CEO of Health Launchpad, delved into the real-world experiences of these ABM practitioners, examining what it takes to make ABM work effectively and drive complex B2B sales.
TLDR
- ABM is a game-changer for driving complex B2B sales in the healthcare technology industry
- Aligning sales and marketing efforts, leveraging intent data, and personalizing outreach can shorten sales cycles and drive revenue growth
- Ben Person, CEO of Tenon, and Kelly McDermott, CMO of Caregility, share insights on embracing ABM
- Key points:
- Data-driven decision-making is crucial
- Start small and continuously refine your approach
- Set clear goals and metrics
- Invest in the right technology
- Develop relevant content
- Secure executive buy-in
- Adapting to an ABM mindset requires a shift in strategy
- Rewards can be significant for companies willing to make the leap
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The Case for ABM in Healthcare Technology
As we all know, in healthcare technology, sales cycles are lengthy and involve multiple stakeholders and decision-makers. According to research by HIMSS, the average B2B healthcare technology sales cycle spans over 13 months, with some extending beyond 19 months. Additionally, the buyer collective typically consists of at least five people, and in many cases, can involve up to 30 individuals.
Given these complexities, traditional lead-based marketing approaches often fall short. The hope with ABM is that it enables healthcare technology companies to focus their resources on the accounts that matter most, delivering higher converting personalized experiences that resonate with key decision-makers. As Kelly McDermott explains,
“The goal is always making the sales cycle as short as possible.”
As Ben Person pointed out during the session, ABM allows companies to ensure that their brand is top-of-mind for the right people when they are actively looking for a solution. By leveraging intent data and other insights, companies can identify which accounts are in-market and tailor their marketing and sales efforts accordingly.
Aligning Sales and Marketing for ABM Success
One of the key themes in our discussion was the importance of aligning sales and marketing teams. Without this, ABM will almost certainly fail.
To make ABM work effectively, sales and marketing must work together seamlessly. This often involves rethinking traditional roles and reporting structures. For example, in some organizations, Sales Development Representatives (SDRs) act as an intermediary between marketing and sales, helping bridge the gap and ensure that intent data and insights are effectively leveraged.
Ben Person emphasized the importance of having company-wide alignment on ABM, starting from the top down. In his experience, ABM was most successful when the entire organization, including the CEO, was bought in and committed to the approach. This alignment ensures that everyone is working towards the same goals and that ABM is treated as a strategic priority. As Ben Person states,
“Alignment is so important between marketing and sales to make this successful. So not just the SDR should be looking at an ABM dashboard every day. They should be peered up, and looking together with their account executives, on a regular interval. It should be a team sport?”
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Leveraging Data and Personalization for ABM Success
Another key aspect of successful ABM programs is the use of data and personalization. By leveraging intent data and other insights, companies can identify which accounts may be in-market for their solutions. This allows them to focus their resources on the accounts that matter most rather than casting a wide net and hoping for the best.
Once target accounts have been identified, personalization becomes critical. As Kelly McDermott pointed out, ABM allows companies to tailor their marketing and sales efforts based on where prospects are in the sales cycle. This might involve delivering targeted advertising, providing relevant content, or having SDRs reach out with personalized messages. Kelly McDermott further explained,
“Data driven decision making is one of the most important aspects. The insights that you gain from implementing an ABM Platform or program are invaluable.”
The goal is to engage with prospects on their own terms, delivering the right message at the right time. By doing so, companies can build stronger relationships with key decision-makers and ultimately drive more sales.
“You begin to understand and do some predictive analytics you couldn’t do before that makes you far more efficient as a marketer and salesperson,” adds Kelly McDermott.
Measuring the ROI of ABM
One of the challenges that many companies face when implementing ABM is measuring its impact and proving its value. As with any significant investment, senior leadership will want to see a clear return on investment (ROI) from ABM efforts.
During the Healthtech Marketing Summit session, both Ben Person and Kelly McDermott emphasized the importance of setting clear goals and metrics for ABM programs. This might include metrics such as pipeline generated, revenue influenced, or deal velocity. As Ben Person notes,
“Marketing budgets are getting tighter. They’re under more scrutiny these days, so how do I make sure that every dollar can point back to a return.”
By tracking these metrics over time, companies can demonstrate the impact that ABM is having on their bottom line. As Kelly McDermott noted, this data can also help to justify further investment in ABM platforms and resources.
Implementing ABM: Starting Small and Scaling Up
For companies that are new to ABM, the prospect of implementing a full-scale program can be daunting. Both Ben Person and Kelly McDermott advised starting small and scaling up over time.
One approach is to begin with a pilot program focused on a specific segment or set of accounts. This allows companies to test out ABM strategies and tactics on a smaller scale, learning what works and what doesn’t. From there, they can iteratively expand their ABM efforts to encompass more accounts and segments. Ben Person advises,
“Stay agile, stay adaptive, find different ways, try something else. I do encourage you to not give up after your first pilot. Try a couple of different methods.”
Ben Person also stressed the importance of having the right prerequisites in place before launching an ABM program. This includes having a clear understanding of the company’s ideal customer profile (ICP), as well as having relevant content and a strong marketing operations function to support the program.
The Future of ABM in Healthcare Technology
ABM is poised to be increasingly important in driving complex B2B sales. Companies can create targeted, effective ABM programs that deliver real results by aligning sales and marketing efforts, leveraging data and personalization, and measuring impact and ROI.
However, as Ben Person and Kelly McDermott noted, ABM is not a silver bullet. It requires a significant investment of time, resources, and effort to get it right. Companies must be willing to commit to the approach and continuously iterate and optimize their ABM strategies over time.
Ten Actions You Can Take
- Align sales and marketing teams: Ensure that your sales and marketing teams are working together seamlessly, with clear communication and shared goals.
- Leverage intent data: Use intent data and other insights to identify which accounts are most likely to be in-market for your solutions, and focus your resources accordingly.
- Personalize your approach: Tailor your marketing and sales efforts based on where prospects are in the sales cycle, delivering targeted advertising, relevant content, and personalized outreach.
- Set clear goals and metrics: Establish clear goals and metrics for your ABM program, such as pipeline generated, revenue influenced, or deal velocity, to measure its impact and prove its value.
- Start small and scale up: Begin with a pilot ABM program focused on a specific segment or set of accounts, learn from your successes and failures, and iteratively expand your efforts.
- Invest in the right technology: Implement an ABM platform or program that provides invaluable insights and enables data-driven decision-making.
- Develop relevant content: Create content that resonates with your target accounts and supports your ABM efforts at various sales cycle stages.
- Foster a data-driven culture: Encourage a culture of data-driven decision-making, where insights from ABM are used to inform strategy and tactics across the organization.
- Adapt and refine your approach: Stay agile and adaptive, continuously refining your ABM strategies based on what works and what doesn’t.
- Secure executive buy-in: Ensure that your ABM program has the support and commitment of senior leadership, including the CEO, to treat it as a strategic priority and invest in its success.
If you liked this post and want to learn more…
- Check out more posts like this in the Healthtech MarketingLearning Center. It is chock-full of articles, use cases, how-to’s, and ideas. Check out our resource center dedicated to ABM
- Follow me or connect with me on LinkedIn. I publish videos and articles on ABM and healthtech marketing.
- See what other healthcare technology marketers are doing. Check out the State of ABM in Healthcare Technology.
- Buy Total Customer Growth: Our book on how to win and grow customers for life with ABM and ABX.
- Work with me directly. Let’s book a growth session and we can explore ways you can improve your marketing using the latest techniques in account-based marketing