ABM benefits and why it works
As buying teams become larger and buyer journeys become more complex, B2B marketing and sales teams are increasingly moving to account-based marketing and account-based sales. Why? Because it works.
As noted on the infographic below, research from industry analysts and associations has found that ABM is helping marketing and sales teams increase their conversion rates, close larger deals, and save valuable prospecting time – and it delivers a higher ROI than other marketing activities.
That’s not to say that inbound marketing is dead. Far from it. In fact, demand gen experts recommend taking a balanced approach in making the move from inbound to ABM, as it can be a tricky process to get right. Proceed with reading about the four main ABM benefits.
1. ABM is gaining great audience performance
ABM marketing’s extra-specific personalization plays a significant role in streamlining the buying process and driving consumers to take action. Research indicates that people have a strong desire for personalized buying experiences. In fact, a substantial 80% of individuals have expressed that personalization makes them more inclined to partner with a business. When ABM is employed to target individuals, it delivers the personalized experience they anticipate, increasing the likelihood of their engagement and purchase decisions.
By leveraging ABM’s personalized approach, businesses can cater to the unique preferences and requirements of their target audience, enhancing customer satisfaction and fostering stronger connections. This tailored experience creates a sense of value and demonstrates that the business genuinely understands and values its customers. Consequently, it increases the chances of engagement, and conversion, and ultimately, drives business growth.
2. ABM effects on ROI enhancement
A study of 50 businesses demonstrated the positive impact of implementing account-based marketing (ABM), revealing an average yearly increase in contract values of over 170%. While the sample size of the study may be relatively small, other research also highlights the significant impact ABM has on businesses.
These statistics highlight the potential of ABM benefits as a highly effective marketing strategy for businesses seeking to generate greater revenue. By focusing on targeted accounts, delivering personalized experiences, and aligning sales and marketing efforts, businesses can achieve significant ROI and maximize the impact of their marketing initiatives.
3. ABM aligns marketing efforts with sales goals
LinkedIn data reveals that over 80% of B2B businesses implementing ABM experience improved alignment between their marketing and sales teams. This alignment brings a significant benefit as it positively impacts customer retention and sales wins.
Account-based marketing relies on reaching specific accounts that align with the ideal customer profile. Sales teams, based on their experiences and customer interactions, possess valuable insights into identifying suitable candidates for ABM and understanding the preferences of these potential customers. This information is crucial for shaping marketing content and tailoring it to the needs of the target accounts. Consequently, it is essential for marketing and sales to collaborate closely to determine the right messaging that resonates with the target accounts.
The synergy between marketing and sales in ABM is crucial for effective campaign execution and achieving optimal results. By leveraging the combined expertise of both teams and aligning their efforts, businesses can create a cohesive customer experience, improve customer retention, and increase their chances of winning sales opportunities.
4. ABM is maximizing budget
Implementing an ABM strategy enables businesses to engage with the most qualified leads, resulting in a reduction of wasted spend. Rather than targeting a broad audience with uncertain conversion potential, ABM focuses resources on individuals who are highly likely to become high-value customers.
By identifying and targeting these specific accounts, businesses can allocate their marketing budget more efficiently. The aim is to reach individuals who have been thoroughly assessed and deemed as strong prospects for conversion. These high-value customers tend to spend more than the average customer and have a higher propensity to continue investing in products or services over time.
With ABM, the goal is to invest a targeted amount to acquire and nurture these high-value customers, maximizing the return on investment. By focusing efforts on the most promising leads, businesses can achieve a higher ROI and minimize wasted spend on ineffective marketing activities.
Making the move to ABM
First, the key is to pick the best accounts to target, which requires a deep understanding of your company’s ideal customer profile and complete, fresh contact and account data with which to make the decision. Once you know the size and make-up of your total audience, it’s important to pick the right engagement channels and to personalize your approach for each person and organization.
Luckily, there are experts who are happy to share their recipes for ABM benefits, so you can start seeing the many benefits of an account-based approach to marketing.
Click the infographic below to download the full PDF version.