In a research paper published by LinkedIn and Professor John Dawes of the Ehrenberg- Bass Institute, it is noted only 20% of target companies are in the market in any given year. The research was centered around advertising but the findings can extend to Marketing in general .
Essentially only 5% of your Target audiences are In-Market every quarter. Whereas 95% of them don’t have a current need.
The 5% lot is what most marketers are chasing at any given point, hoping to convert. The problem with this approach is that you are always in a reactive mode instead of proactively engaging and nurturing future prospects.
In today's age when more than one-half of the purchase decision-making process (sometimes even 70%) happens prior to formally engaging with a vendor, it is a lost opportunity if you don't show up during their research phase.
We wrote about how buyers (the 95% lot) have to go through different stages in their purchase journey before becoming a customer. It is where you have the maximum leverage to establish a strong brand recall and associate your product as the best solution to a problem that customers will eventually discover.
Clearly, you need a different strategy to go after the two groups, namely Demand Capture and Demand Generation.
While in Demand capture mode, you can use the traditional channels and approaches such as PPC, Performance marketing, and other lead-based targeting techniques. The prospects who are in-market already have an understating of their problems and are looking for solutions to tackle those problems and maximize opportunities they have self-identified.
When it comes to Demand Gen, where a bulk majority (the 95% lot) of the target buying group fall, ABM could be an effective tactic that could be applied. Here is a checklist to find if ABM is a good strategy to adopt for your target audience.
Once there is a fit, the standard process of implementing ABM still apply. Start with identifying your ICP, map the buying committee, Research and collect data, categorize them to different tiers, and orchestrate campaigns to create awareness, and nudge them towards conversion.
Check out our eBooks for a detailed understanding of how to go about planning and rolling out the ABM program for your organization.
If you have questions, do write to us contact@recotap.com or book a free consultation call.
