A striking statistic to consider: 76% of marketers report higher ROI using account-based strategies over traditional marketing, according to the ABM Leadership Alliance and ITSMA. Yet, despite its potential, many businesses stumble when it comes to unlocking the full power of expansion revenue.
The root cause? It’s not the strategy itself but how it’s implemented. The gap between average and exceptional outcomes often hinges on a single critical factor: cross-functional alignment.
In my previous article on account-based expansion (ABE), I introduced the 40/40/20 rule. Now, let’s delve into a go-to-market (GTM) alignment framework designed to transform how your teams collaborate.
The Hidden Cost of Misalignment
Acquiring new customers has become increasingly expensive, yet many businesses overlook the potential of existing accounts. Why? Fragmented operations and siloed approaches to growth.
Today, most companies function with marketing chasing MQLs, sales targeting new logos, and customer success focusing solely on retention. While this model once worked, it now leaves significant revenue untapped in today’s complex B2B landscape.
The Four-Pillar ABE Alignment Framework
Here are the four pillars essential for achieving effective cross-functional alignment:
1. Shared Vision and Goals
One common misstep is diving straight into tactics without establishing a unified vision. A successful ABE strategy begins with:
- A clear charter outlining success across all revenue functions.
- Specific, measurable objectives cascading from business goals to team KPIs.
- Shared metrics that promote collaboration rather than competition.
For instance, instead of marketing owning MQLs, sales owning opportunities, and customer success managing retention, organisations can implement shared metrics such as “expansion-qualified accounts” (EQAs). These require collective input from all teams.
2. Defined Roles and Responsibilities
Clarity prevents the “not my job” mentality and ensures accountability. A RACI (Responsible, Accountable, Consulted, Informed) matrix can:
- Define ownership of tasks.
- Ensure seamless coordination.
- Minimise overlaps and gaps in responsibility.
3. Streamlined Communication and Collaboration
Real-time communication and coordinated actions are crucial for ABE success. Key components include:
- Weekly ABE team meetings to strategise and execute.
- Shared chat channels for instant updates and collaboration.
- Monthly executive reviews to address strategic hurdles.
- Quarterly business reviews to track progress and adjust tactics.
4. Unified Metrics and Reporting
Metrics drive behaviour. Successful ABE programmes track:
- Account health scores, incorporating product usage, engagement, and satisfaction.
- EQA conversion rates.
- Average deal cycles.
- Net revenue retention.
- Customer lifetime value.
Establishing a single, trusted source of data ensures all teams make informed decisions.
Tackling Common Alignment Challenges
Even with the right framework, alignment isn’t straightforward. Here’s how to overcome common hurdles:
Siloed Organisational Structures
- Form cross-functional ABE pods.
- Implement shared OKRs (Objectives and Key Results).
- Conduct regular cross-team training sessions.
Conflicting Incentives
- Align compensation models.
- Develop shared success metrics.
- Reward team-based expansion wins.
Lack of Trust Between Teams
- Schedule joint planning sessions.
- Hold shared account reviews.
- Celebrate collective achievements.
Resistance to Change
- Start with pilot programmes.
- Document and share early successes.
- Provide clear career pathways within the new structure.
The Future of ABE Alignment
As customer acquisition costs soar, the ability to expand existing accounts will become a critical competitive edge. The future belongs to businesses that break down silos and integrate their revenue teams.
The question isn’t whether to align your teams around ABE but how quickly you can do it. Early adopters will gain a significant advantage, building the processes and expertise needed for sustained growth.
To start:
- Identify your top 20% of accounts.
- Form a pilot ABE team.
- Implement the four-pillar framework.
- Measure results, refine processes, and scale successes.
Remember, alignment is an ongoing journey. With continuous attention and refinement, you’ll unlock new growth levels, leaving leadership eager to invest more in this strategy.
The most successful B2B companies of tomorrow won’t be those with the largest acquisition budgets. They’ll be the ones who master efficient acquisition-to-expansion strategies through aligned revenue teams.
