Stop Churn and Grow Revenue from Existing Accounts with Account-Based Marketing (ABM)
Preventing churn and maximising revenue growth from existing accounts are two of the most critical challenges for B2B companies. It’s a well-known truth: retaining a customer is far more cost-effective than acquiring a new one. However, traditional marketing approaches often fail to maintain the level of engagement and satisfaction needed to stop churn.
This is where Account-Based Marketing (ABM) comes in—a proven strategy for building long-term relationships and unlocking growth within your existing customer base.
Understanding the Stakes: Why Churn Reduction Matters
Customer retention directly impacts your bottom line. As Jason Lemkin, co-founder of SaaStr, famously said, “Customer Success is where 90% of the revenue is.” In a competitive B2B landscape, retaining and expanding existing relationships isn’t just a growth tactic—it’s a survival strategy.
When churn is left unchecked, it erodes revenue, wastes acquisition efforts, and damages brand reputation. On the flip side, retaining customers and maximising their lifetime value (CLV) can significantly boost profitability. For example, a 3% increase in Net Revenue Retention (NRR) can double a company’s valuation, according to Bessemer Venture Partners.
The question is: how do you stop churn and simultaneously grow revenue? The answer lies in leveraging ABM and implementing a robust Customer Success strategy.
The ABM Advantage: Treating Each Account as a Market of One
At its core, ABM is a personalised, strategic approach to marketing and sales. Unlike broad, one-size-fits-all campaigns, ABM focuses on engaging individual accounts as if they are their own unique market. By aligning sales and marketing efforts, ABM ensures that every interaction adds value and addresses the specific needs of your customers.
When applied to existing accounts, ABM becomes a tool not just for retention but for growth. Here’s how:
- Personalisation at Scale: ABM enables businesses to create customised campaigns tailored to the goals, pain points, and growth potential of each account.
- Deeper Relationships: By treating accounts as valued partners, ABM builds loyalty and trust.
- Strategic Upselling and Cross-Selling: ABM helps uncover new revenue streams by aligning solutions with evolving customer needs.
Crafting a Targeted Approach to Reduce Churn
The foundation of ABM lies in deep account insights. By conducting comprehensive research and analysis, you can:
- Understand each account’s unique business challenges and objectives.
- Identify usage patterns, gaps in adoption, and areas of potential risk.
- Design messaging that resonates with their specific goals.
Here’s an actionable framework to guide your ABM efforts:
Onboarding and Training
A strong onboarding experience sets the stage for long-term success. Customers who understand your product’s value from day one are less likely to churn. Offer personalised training, dedicated resources, and ongoing support to ensure adoption.
Proactive Engagement
Don’t wait for issues to arise. Regular check-ins, tailored content, and value-driven communication demonstrate that you’re invested in their success.
Lihong Hicken, CEO of TheySaid, emphasised this on the SaaS Stories podcast: “You don’t wait until the relationship is on the rocks to ask how your customer is doing.”
Health Score Monitoring
Leverage data to track customer engagement metrics such as product usage, login frequency, and support tickets. By identifying at-risk accounts early, you can intervene before churn occurs.
Customer Feedback Loops
Implement continuous feedback mechanisms like NPS surveys or TheySaid’s “customer journey pulse” method. Engage customers with personalised questions throughout their lifecycle to uncover risks and upsell opportunities.
Driving Engagement Through Multi-Channel Campaigns
ABM thrives on multi-channel engagement. From email communications to exclusive events, ABM ensures that every touchpoint aligns with the customer’s journey. Key strategies include:
- Personalised Content: Create resources tailored to the account’s industry and goals, such as whitepapers, case studies, or tutorials.
- Targeted Social Media: Use LinkedIn ads or retargeting campaigns to stay top-of-mind.
- Exclusive Events: Host webinars, roundtables, or VIP events that provide value and foster deeper connections.
Marketing automation tools like HubSpot can help track these efforts, ensuring timely and relevant outreach. By monitoring account activities and analyzing behavior, you’ll gain actionable insights to refine your strategies.
Upselling and Cross-Selling: Unlocking New Revenue Streams
Upselling and cross-selling are vital components of ABM. However, success lies in understanding when and how to make these offers. Geoff McDonald, CEO of Ambassador, shared this insight on the SaaS Stories podcast: “The best way to prevent churn isn’t just to keep customers happy—it’s by upselling and cross-selling in a way that delivers additional value.”
Effective Strategies:
- Understand Evolving Needs: Regularly assess how your customers use your product and identify areas where additional features or solutions could help.
- Segment Accounts: Not all customers are ready for upselling. Focus on accounts with high engagement and strong adoption metrics.
- Provide Value-Driven Offers: Frame upselling as a solution to their challenges, not just a sales pitch.
- Time It Right: Introduce upsell opportunities after the customer has seen tangible value from your initial offering.
By integrating these strategies into your ABM framework, you’ll not only grow revenue but also deepen relationships.
Building Long-Term Relationships with ABM
ABM goes beyond immediate wins to foster trust, loyalty, and advocacy. This long-term focus is essential for reducing churn and sustaining growth.
Key Practices:
- Proactive Communication: Keep customers informed about new features, updates, and industry trends.
- Customer Education: Offer webinars, tutorials, and newsletters to ensure ongoing value delivery.
- Co-Creation Opportunities: Involve customers in product development or beta testing to strengthen their investment in your success.
As Geoff McDonald put it, “Your best salespeople aren’t in your sales team—they’re your happy customers.” Advocacy programs and referral incentives can amplify this effect, turning satisfied customers into powerful brand ambassadors.
The Role of Customer Success in ABM
Customer Success isn’t just a department—it’s a revenue driver. A well-executed Customer Success program enhances ABM by ensuring clients achieve their desired outcomes with your product. This, in turn, increases CLV and reduces churn.
Core Elements of Customer Success:
- Proactive Support: Anticipate issues before they arise.
- Data-Driven Insights: Use analytics to understand customer behavior and inform strategy.
- Continuous Feedback: Act on customer input to refine your offerings.
Automation can play a significant role here. Platforms like HubSpot can trigger communications at critical stages, such as onboarding, renewal, or upsell opportunities, ensuring timely engagement.
Stopping churn and growing revenue from existing accounts isn’t about quick fixes—it’s about building meaningful, long-term relationships. By integrating ABM with a robust Customer Success strategy, you can deliver personalised value, foster loyalty, and unlock new revenue streams.
Remember Jason Lemkin’s words: “Customer Success is where 90% of the revenue is.” When you focus on customer retention and growth, you’re not just securing revenue—you’re building a foundation for sustainable success in the ever-evolving B2B landscape.