On this week’s episode of B2B Nation, we talk to marketing expert Andrew Dumont. Andrew spent two years as CMO at Bitly and been a B2B professional since age 17. He’s now working a couple of projects on his own.
A couple things we talked about:
- The similarities between account-based marketing (ABM) and inbound marketing, and how those two tactics can work together
- Increasing customer retention and reducing churn rate through customer expansion tactics
Below are some highlights from our conversation:
ABM and Inbound Marketing as Cooperative Tactics
“Account-based and inbound marketing should work in tandem. I worked about nine months at Bitly to build an inbound model, and I based a lot of that off of my work at Moz.com. When you have a mid-to-high end price point, you really start needing account-based marketing. Inbound can drive a ton of leads, but the quality goes down and the close rate drops.
“Then you have to start focusing your leads to a specific set of accounts, which means that the account-based and inbound marketing groups have to work together.”
Advice on Incorporating ABM with Inbound
“If you have four personas you’re trying to bring into your funnel, ABM can help you target the companies that fit within each of those personas. It’s an evolution and another step to become more targeted with your efforts. If you remove the term ABM from the conversation, it’s just the next step in targeting.
“Your list will expand as you become more successful with ABM, and that’s how it will scale. As you become better at targeting you’ll learn how to scale to more accounts.”
Increasing Customer Retention
“At Bitly, we had net negative churn because we invested heavily in our customer success team. We thought about this team as a part of our sales team, which allowed us to think about how to get customers to expand the usage of our product rather than just focus on churn.
“This affects not only how you think about your accounts, but also how you think about staffing your customer success team.
“If your company is thinking only about retention but would like to think about expansion, you should start by setting goals or quotas for some of your teams and see how it goes. The more you can test the better off you are.”
Building Customer Expansion
“You should start with targeting active users, but also have an understanding of the portions of your product that they actually use. In a B2B environment, you’ll often find users only taking advantage of 10-20 percent of a product because they really like that feature.
“When we looked at our customer expansion at Bitly, we focused on getting the customer using the whole product and understanding the entire product, which made those customers into advocates.
“Marketers often don’t think about current customers as a marketing target, but instead focus on new customers. But if we think about marketing, education, and advocacy to those current customers, we can build depth.”
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B2B Nation is a podcast for B2B sales and marketing professionals, featuring expert opinions and advice on the most important topics in the industry. Check out our other episodes on iTunes, or follow us on Twitter: @Technology_Adv.