Audrey asks, “Can you talk about how ABM and AI will interact? Will AI replace ABM?”
The premise of ABM is to target your best potential customers. AI will help you tune 3 key questions:
– Are they in fact your best customers?
– What indicates your best customers?
– Who in the organization should you actually target?
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What follows is an AI-generated transcript. The transcript may contain errors and is not a substitute for watching the video.
In today’s episode Audrey asks, Can you talk about how ABM and AI will interact with AI replace a IBM? So, ABM or account based marketing is predicated on the idea that there’s a certain type of of prospective customer.
This is mostly for b2b marketing, although it does work for complex b2c marketing as well.
And it’s predicated on the idea that there’s this pool of prospective customers that represent your best potential customers out there.
And you spend all your time and effort and energy and marketing dollars on marketing just to those companies.
Because you know that they are the ones who are the most likely buyers.
The challenge with a BM and where I think AI has potential to assist but not really Place is that ABM is based on a bunch of assumptions and those assumptions may not be correct.
So, first and foremost, what do your best customers existing customers have in common as firms and then as people at those firms, this is an area where obviously, artificial intelligence and machine learning have a great deal to offer where you can look at the characteristics of these companies in massive combination, to try to understand what do your best customers have in common? What do your prospective customers that you’ve identified have in common and are they the same? Are they the same lists? When you look at the way people implement ABM very often they’re going whale hunting, right? They say, oh, we’re, I’ll use my company as an example, Trust Insights.
If we were to use IBM the way most people do Well, we want to target only the fortune 500, right, we want to target the big whales, we want to spend all their time and money, trying to land those big contracts.
And really when massive growth for the company challenge is, those may not be the best customers for our company, they may not be a good fit for our products and services, they will have substantially longer sales cycles.
And so we’re spending all of our time and money trying to win a deal over a period of like two to five years, but we only have enough cash to run for 12 months that obviously there’s gonna be a big mismatch there.
And we may not be able to solve their problems, right, or they may not be the kinds of companies we want to work with.
As opposed to using the data you have to build that comprehensive perspective on who your best customers are now.
you’d use something like For example, multiple regression analysis and say, Okay, what do these firms have in common? And from there, you would build a model that would predict for any new incoming leads or any new incoming data sources, what the characteristics of those are and what kind of fit they are for your, for your model.
So let’s say you do the analysis and you find out that actually, financial services firms between 200 and $300 million dollars are the best fit, but firms located in northeast the United States that were founded less than 20 years ago.
Now you have a much better data driven approach towards ABM rather than to say let’s go to all the fortune 500 financial firms they may not fit those criteria.
So that’s one of your where a x certainly can help.
A second area where AI can help in ABM is understanding who you should be targeting.
So a lot of the time, a lot of the time I see salespeople in ABM, you know, gathering up list after list, the CEO and the Chief Marketing Officer, the CFO and, and they’re going after the heads of these companies, which is fine.
Those are the decision makers, those are the people who will eventually sign the piece of paper.
But if you are trying to reach people that can get you into a long complicated sales process, they may not be the best people.
So again, using artificial intelligence and machine learning, you could construct a model to say okay, for the average sale that goes through in our data, what is the chain of interactions that happens? That leads to those sales? Is it in fact the intern that assembles the shortlist of companies that make the RFP that then gets us you know, the company landed the deal, right? In that instance, you’re taking a case where you’re turning the generally accepted conventional wisdom on its head and saying no, no, let’s let’s target interns instead.
A there’s a lot more of them be there a lot cheaper and see if they’re the ones who are assembling the shortlist.
So we get on the CMOS desk by proxy for the CEOs desk by proxy, instead of going straight after the CEO.
That level of analysis again, it’s not something that a lot of people do, because it is very laborious, very often, that type of chain of evidence is that data is locked away in your sales CRM, and it’s super hard to get at.
So that’s an area where again, machine learning may be able to assist you in either extracting the data or building that model.
And there’s going to be a hefty amount of data science in there too, because you’re going to have to construct a model from scratch.
There’s not something you can simply pull off the shelf and run with.
So does AI replace ABM? No If anything had fine tunes and helps you confirm if your assumptions are right or wrong.
And that is where the real value is.
This is true of any marketing assumption.
Using sophisticated tools using sophisticated models, helps you either validate or disprove your assumptions as long as you’re careful not to bias your models on Confirm just only confirming that you’re right.
That’s why you would use a lot of data science approaches upfront to validate Yeah, this is the best customer or this is not the best kind of customer we should be going after.
What do these companies have in common? One of the challenges you’ll run into using AI with ABM and with CRM software in general, is that the data is often very hard to get out.
So one of the prerequisites is having a system a a good CRM that allows for robust and easy Date data export, you’ve got to get the information out of the system because a lot of these CRMs do not have the capability to run this type of analysis.
They will advertise that they do.
There’s some leading CRM vendors, I love to talk about how much AI is baked into the product.
And I’m sure there is there’s put they put a fair amount in there.
But there are some things and some tasks that are so computationally expensive, or so technologically complex, or your data requires so much customization that these, these vendors will be unlikely to offer that as an option for your company that will solve your specific problems.
So look for those CRMs allow for a robust and easy data export to get you to your AI models faster and better.
There’s a lot of stuff you can do with a VM.
That is a lot of fun.
There’s a lot of stuff you can do with AI to tune it up and make it work better.
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