Report: Account-based marketing results in better ROI

However, almost half of companies do not measure its effectiveness

According to a new study, 71 per cent of companies that invest in account-based marketing (ABM) report their return on investment is somewhat or significantly higher than traditional marketing programs. 

ITSMA and the ABM Leadership Alliance, of which Demandbase is a founding member, released their latest research report, Moving to ABM Maturity: 2019 ABM Benchmark Study, which also found 21 per cent of respondents expected an increase in current ABM budgets.

However, further findings suggest a frequently missing element in ABM campaigns is proving the success and value of ABM internally. Nearly half of the companies (45 per cent) said they do not currently measure the ROI of ABM. With ABM accounting for improvements in engagement with target accounts (92 per cent), new account relationships (86 per cent) and pipeline growth (83 per cent), the report said marketers should be focused on making the business outcomes visible to the organisation. 

The third annual study found ABM continues to generate greater business outcomes from top customers and prospects than other types of B2B marketing, and mature ABM programs are even more effective.

Read more: The dos and don'ts of account-based marketing

Companies that have already implemented an ABM strategy now dedicate almost one third (29 per cent) of their entire marketing budget to ABM. Almost three quarters (73 per cent) of those same companies are planning to spend more on ABM in 2020. Overall, the study showed an average 15 per cent increase in ABM spending next year.

According to the research, marketers planning to expand their ABM programs will focus on fine-tuning the buyer experience for their most important customers and prospects. These marketers cited adding tactics and activities for current accounts in their programs and expanding to cover more accounts as their top two priorities to increase the impact of ABM.

The study also highlights the hallmarks of the most effective ABM programs, including the critical areas of technology investment and sales alignment. Companies with the most effective ABM strategies are much more likely to have invested in technologies for analytics (69 per cent), account insights (67 per cent) and engagement insights (56 per cent). And while only 27 per cent of respondents reported using predictive technologies, 22 per cent said they plan to add this functionality to their ABM technology stack in the next 12 to 18 months.  

“The research from ITSMA and the ABM Leadership Alliance confirms what Demandbase has seen in the market over the past couple of years - ABM strategies are getting more sophisticated, which is influencing more significant business outcomes,” Demandbase CMO, Peter Isaacson, said. 

“In a hyper competitive landscape, B2B marketers have recognised they can’t afford to delay the implementation of ABM any longer. The dramatic increase in both budgets and adoption demonstrates ABM continues to become a mainstream business strategy.”

However, many marketers do experience challenges preventing them from reaching the full potential of ABM in their organisations. Respondents listed their top five ABM challenges as:

1. Personalising and tailoring their marketing to the key contacts at each account

2. Tracking and measuring ABM results

3. Getting an adequate budget to support programs and resources 

4. Developing campaign assets that are mass customisable to allow scale

5. Educating sales on the process and value of ABM.

The report highlights five key ways marketers can accelerate their ABM maturity and impact in 2020:

1. Practice patience; maturity takes time: ABM can generate substantial results quickly but takes time to develop fully; the most mature programs drive far greater business impact 

2. Strengthen sales alignment: The most effective ABM programs are closely aligned with sales coverage models, with ABM marketers working hand-in-hand with inside sales

3. Invest in insight: The best ABM is customer-centric and based on deep insight; most companies are still at the early stage of tapping tools and data for sustained and high impact success

4. Master multichannel: Amid the rush to digital, the most effective ABM programs continue to use a balance of online and offline approaches, fully integrated across sales and marketing

5. Build a blended strategy: Most companies still rely on just one type of ABM, but the most effective programs use two or three approaches: One-to-One, One-to-Few and One-to-Many.

“The ultimate goal for ABM leaders in 2020 should be moving ABM from a dedicated marketing practice to a fully integrated corporate initiative that’s central to the growth strategy of the organisation and influences how the company goes to market,” ITSMA senior vice-president, Rob Leavitt, said. 

“ABM has clearly gained mainstream acceptance in B2B marketing already; the next step for even greater business impact is gaining full collaboration and support across top business and sales leadership.”

The ITSMA and ABM Leadership Alliance account-based marketing benchmarking study is based on online survey data from 196 B2B marketers active in ABM as well as a series of in-depth qualitative interviews with leading ABM practitioners.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia. 

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