ABM Changes the Game—If You Can Make It Work
- For B2B organizations, ABM can drive significant ROI.
- Implementation of ABM can be tricky due to shortcomings in strategy, data or content; cross-functional collaboration can help ensure success.
- B2B organizations that pivot to an ABM approach and create a “beacon” project may be rewarded with a strategic market advantage over less nimble competitors.
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B2B sales and client engagement are complex and evolving. Deal values are high, products and services typically require customization, and the sales cycle tends to be a consultative process. Furthermore, for many B2B organizations, the “80-20 rule” holds true: A relatively small number of high-value clients are responsible for the lion’s share of revenue and loyalty. All of which means spraying out a one-size-fits-all message to the universe at large is wasteful and unproductive.
No surprise, then, that account-based marketing—carefully planned, targeted messages and content focused on key accounts—is increasingly where B2B marketers are investing their energy and budgets. According to Gartner’s Technology Marketing Benchmarks Survey, B2B businesses “of all sizes must start planning and executing ABM strategies or risk losing clients to savvier competitors.” The research firm says B2B marketers implementing ABM enjoy “improved conversion rates throughout the funnel, increased web traffic, and improved advertising and email performance.” Even more compelling, ABM has a direct impact on profitable growth, with survey respondents reporting “higher win rates, faster sales cycles, and increased deal sizes.”
Such an endorsement should elevate ABM to the level of table stakes, i.e., a core market growth strategy, not just a tactic for a marketing campaign. That said, more than a few marketers find that executing ABM is more challenging than they expect.
The animating principle behind ABM is the commonsense idea that potential buyers welcome a productive dialogue as they move along the purchase journey. All well and good—assuming the marketer knows how to facilitate that discussion. But perhaps because many marketers cut their teeth in the world of B2C, there can be a degree of awkwardness when it comes to fostering a substantive conversation that evolves over time—the very definition of a considered purchase. ABM is the opposite of mass marketing: It’s a conversation with specific, identifiable humans.
To complicate matters further, B2B purchase decisions in large enterprise organizations are seldom made by just one person; typically, it’s a group effort, and while someone in the executive suite is the ultimate decision-maker, the decision isn’t made in isolation. So, an ABM effort requires that the B2B marketer have a substantive understanding of the requirements and interests not only of that decision-maker but also of purchase influencers, product users and other stakeholders in the client organization.
One additional factor: Usually, the client has a relationship with particular individuals (e.g., salespeople, account executives) at the B2B marketer. Which means the marketing, sales, digital and client success teams all need to be on the same page. Otherwise, there is a risk of sending the client mixed messages and coming off as not being in sync.
Given the complicated nature of the sale, it’s no surprise that B2B organizations are frequently disappointed in the results of their initial ABM efforts. These marketers may lack the necessary data—for example, client titles and contact information, along with a clear understanding of each individual client’s role and needs. The fact is that today, more than half of ABM campaigns are not successful, doomed by inadequate strategic planning, a lack of cross-functional support or poor implementation—not because ABM doesn’t work.
Lack of market and client knowledge To implement ABM, marketers need to identify key accounts. This requires marketers to have an in-depth understanding of their ideal client profile, and that ideal client’s most critical needs.
Limited cross-functional collaboration ABM is only successful when marketing, sales, digital and analytics function as an integrated team. And often, due to historical rivalries, turf battles and lack of alignment around objectives, partnership is at best a work in progress.
Data dysfunction ABM requires accessing CRM records, which may be fortressed behind systems of record due to privacy concerns. Success with ABM requires clean, usable client account data.
ABM technology issues In some cases, ABM tools are acquired but never deployed because the tools are considered to be within IT’s domain, and the CMO’s organization finds itself handcuffed. The ABM platform ideally should be “owned” by digital marketing.
A “beacon project”—think of it as a pilot program or proof-of-concept—is a relatively small, controllable effort to test capabilities, build essential skills and identify expertise and technology gaps, all with an eye towards developing enterprise-wide competency and eventually scaling up the effort. (It’s a beacon because its success lights the way for others in the organization to follow.)
B2B organizations seeking to launch an ABM beacon project typically work with a strategy and implementation partner and progress through seven critical stages:
- Identify high-value accounts
- Define client segments (e.g., decision-makers, influencers, product users, etc.)
- Develop personalized messages, content and sequencing
- Choose channels and platforms, e.g., mobile, social, display, email, video, microsite
- Execute the campaign and engage clients
- Measure and evaluate responses and results
- Adjust tactics as indicated, repeat
The complexity of an ABM approach requires agile decision-making, accurate data and measurement, and an experimentation mindset—with a willingness to learn from failures as well as celebrate achievements. The reward for ABM success is that, when executed correctly, ABM will deliver the highest ROI of any B2B marketing strategy. Marketers that become proficient in ABM can expect an engagement lift and increased loyalty from targeted accounts; an upswing in attributed revenue opportunities and qualified sales conversations; improved collaboration between sales and marketing; and better data hygiene practices and more reliable data to support ABM initiatives going forward – all of that, along with the knowledge that they are mastering the B2B marketing approach of the future.