Account Based Marketing, or ABM, is one of the most talked about trends in B2B marketing. ABM enthusiasts make many claims – from improved Return on Marketing Investment (ROMI) to enhanced customer advocacy – but for those companies that have gone down the ABM route, has reality lived up to the hype? And how can you ensure you maximise the return on your ABM programme?
Most companies are still in the early stages of implementation with 52% of ABM programmes having been in place less than 1 year, but the results so far suggest that it does indeed have clear benefits.[1] Compared with traditional marketing initiatives, 77% of ABM programmes have seen their ROI improve by 10% or more, and 45% have more than doubled their ROI.[1]
ABM also has its challenges, most notably allocating sufficient budget and resources to do the job well. The average spend on ABM programmes is a whopping 28% of marketing budget, which is a significant commitment for something relatively new.[1]
So, is this 28% of budget well spent?
We have already talked about the ROI benefit claimed by early adopters – but what’s the basis of these results?
Essentially, ABM is a much more targeted approach than traditional scattergun marketing campaigns. It seeks out specific accounts that fit an ‘ideal customer’ profile, and specific individuals within those accounts, to make the likelihood of conversion higher.
In addition, it is much more personalised. When communications are designed to resonate with an individual and the needs of his or her company, they are more likely to have a positive response. With ABM, you can be very specific with your messaging, increasing the relevance to each individual and making it easier for them to see how your product or service can benefit both their organisation and them personally. When surveyed, 67% of marketers said that their ABM accounts achieved greater customer success with their solutions than other accounts.[1]
This targeted and personalised approach also creates stronger customer advocacy. Up to 66% of marketers reported that their ABM accounts are more likely to provide positive references and advocate for them than other accounts.[1]
Other benefits include a reduction in wasted effort. The greater focus on a smaller number of carefully chosen target accounts means that your messages are not wasted on anyone that has no serious interest in what you have to offer.
Finally, the smaller target list also makes ABM easier to monitor. When you are only talking to a finite number of contacts, you can easily track progress to make sure nothing is missed, and outcomes can be carefully picked over for future learning.
ABM is not a quick fix. It needs to be implemented properly, with the right level of focus, attention and resource in order to produce results.
Some of the biggest challenges in implementing ABM include:
So, what do you need to do to ensure that your foray into ABM is a successful one?
The evidence from best-in-class ABM programmes suggests that if planned carefully and implemented correctly, your ABM programme could yield extremely positive results. The benefits should include more ‘qualified’ prospects, higher conversion rates, an increase in new closed business (from both existing and new accounts), new c-level contacts that you previously couldn’t reach, and greater customer advocacy.
If you can get it right then that 28% of your marketing budget would be well spent!
[1] ITSMA (2018) Raising the game with ABM: 2018 Benchmark Study https://www.itsma.com/research/raising-the-game-with-abm-2018-abm-benchmark-study/