In addition to guest posting on the UpCity blog, Rizen Inbound is featured as one of the Top Digital Marketing Consultants in the United States. Check out their profile!
A buyer-seller relationship is like a marriage. If one person isn’t a good match for the other, the partnership won’t last. So it’s best to put some thought into whether both parties are a good fit before you invest too much time and money into a doomed relationship.
That’s basically the philosophy of account-based marketing or ABM. Not all customers are right for your product or service. So there’s no reason to waste time marketing and selling to those companies or consumers who aren’t a good fit for you and will probably end up leaving anyway.
ABM is all about identifying the right buyers and personalizing your solutions to win that account. Instead of throwing everything against the wall and hoping something sticks, ABM is like darts. You’re aiming for the bullseye because you know that’s going to help you win big. And in this scenario, the bullseye is a key decision-maker at a specific company that needs and wants your services.
You don’t have to simply take our word for it. ABM is an effective, efficient way to grow your sales and boost your marketing ROI–and we’ve got the data to back it up.
Account-Based Marketing (ABM)’s Growing Popularity
ABM is on the rise, so if you haven’t jumped on the bandwagon yet, now is the time to do so. Here are some fast facts to show just how much ABM is taking over modern marketing practices:
- Between 2018 and 2019, the percentage of marketers who rated their ABM strategy as “established” grew from 43% to 55%.
- The average ABM budget grew by 41% in 2019.
- 87% of account-based marketers say that ABM initiatives outperform other marketing investments.
When something is effective, it tends to create a lot of buzz. ABM is no different. Over the past 5 years or so, marketers everywhere are becoming more and more interested in ABM. In fact, according to a 2019 survey from Information Technology Services Marketing Association (ITSMA) and the ABM Leadership Alliance, “We’ve seen an incredible rise in interest in ABM since 2013, and [there are no] signs of that abating… ABM will continue to influence the way we do our broader marketing too, such as One-to-few ABM principles shaping vertical marketing and One-to-Many ABM shaping ‘always on’ offering campaigns”.
We know that ABM is still gaining momentum because, as they say, money talks. And almost 75% of marketers who employ ABM techniques and strategies are increasing their ABM budgets for the next year. If people are willing to spend even more of their marketing budget on ABM, you know the results have got to be good.
Why is Account-Based Marketing (ABM) So Popular?
Why is everyone talking about account-based marketing? Because it saves time and money while exploding ROI; it’s a win-win situation. Marketers don’t have to waste their precious time trying to appeal to mass markets and instead can focus on the really valuable players. By targeting a company’s decision-makers from the get-go, you don’t have to re-market and sell to them after you’ve got your foot in the door with someone lower down the totem pole.
The bottom line is that ABM is effective at generating hot leads–much more so than many other forms and strategies of marketing. And that’s the real reason it’s become so popular. 85% of B2B marketers have lead generation as their top goal but 63% of them say it is also their top challenge. ABM makes lead generation simpler, more effective, and more cost-efficient.
Why DoesAccount-Based Marketing (ABM) Work?
What exactly is the secret sauce when it comes to account-based marketing?
First of all, consumers love personalization–80% of people are more likely to purchase a product or service from a brand that personalizes their marketing or sales process. And more than half (56%) of marketers think that personalization is the key to ABM’s success rate.
But another huge factor in the efficacy of account-based marketing is close marketing and sales alignment. Marketing teams and sales teams have to work closely to ensure that the right accounts are being prospected, targeted, and sold to. Basically, ABM doesn’t work without sales/marketing alignment. And according to a Sirius Decisions study, companies with tightly aligned “smarketing” teams see a 3-year growth of about 25% for both their revenue and the profit.
Proof That Account-Based Marketing (ABM) Works
Why are we so confident that ABM works? Because the numbers back it up.
The results are in, and the wins are big. According to an ABM Leadership Alliance study, implementing ABM results in
- Increased pipeline velocity
- Higher close rates, and
- Significantly higher Annual Contract Values (ACV).
In fact, companies who used ABM tactics saw an enormous increase of 171% when it came to their ACV.
And the longer you use ABM, the better. Survey respondents who were not meeting their goals were almost all in the first year of using ABM. Meanwhile, those who had committed to ABM for at least 12 months were meeting or exceeding their goals. But it’s important to note that even those in early stages of implementation still saw staggering success–one respondent reported that “two accounts in Q2 went from 0 to $1M+ in 90 days. Previously it took 18 months to do that.”
Unsurprisingly, the ROI of ABM can be absolutely colossal. Another ABM Leadership Alliance report found that 71% of companies who implemented ABM tactics saw their ROI go up. Better yet, 1 in 5 companies using ABM saw their revenue increase by a third or more because their average deal size went up. And 1 in 4 businesses said their average deal size grew by as much as 50%.
What does this success look like compared to other marketing strategies? 87% of Respondents in every stage of ABM implementation reported that their efforts, no matter how immature, were still outperforming traditional marketing methods. No matter what statistics you look at, ABM still comes out on top.
The moral of the story? Start practicing ABM now for quick wins, and keep it up to see massive growth.