Research: The Benefits of Account Based Marketing
Now that Account Based Marketing has been around for a while, more and more research about its benefits and ROI is emerging. Here’s a round-up of some of the best benefits of ABM.
ABM focuses time and resources on accounts most likely to drive revenue.
It’s a ‘zero waste’ strategy that targets 100% of time, resource and effort on the named accounts your company decides sees as having the greatest potential.
ABM deal sizes are bigger.
An ABM success can outweigh dozens of smaller deals sourced through traditional demand generation. And ABM deals can be bigger than normal ‘key account’ selling too: they’re more likely to have buy-in from a wider team; to lock out or constrain competitors; and to reach higher into the account. In fact, Demandbase found that the average contract value (ACV) for targeted accounts was 40% higher for mid-market and 35% higher for Enterprise accounts. When ABM wins, it wins big.
ABM increases the close rates of your toughest deals.
Research shows that the systematic discipline of ABM significantly out-performs the more ad hoc or unaligned approaches of the past. Demandbase saw a whopping 285% higher close rate for targeted Enterprise accounts, and 166% higher close rate for mid-market accounts when ABM was used.
ABM deals proceed faster.
Because they actively target all of the buying influencers and decision-makers – instead of leaving hidden influencers to chance – ABM deals move faster and get stuck less.
ABM tightly integrates your sales and marketing teams.
By definition, Account Based Marketing requires sales and marketing to focus on the same accounts with clear and agreed criteria. Sales will value any marketing team that focuses it resources gaining traction in the accounts Sales cares about the most. In fact, the September 2015 Account Based Marketing Adoption report from Demandbase and Demand Metric found that 70 percent of ABM users report their sales and marketing organizations are mostly or completely aligned, compared to 51 percent for non-ABM users.
ABM enables the Challenger Sale.
The Sales team wants to have challenger sales conversations that “teach for differentiation and tailor for resonance”. ABM provides the ideal strategy and framework for this – and delivers the account insights that help make it happen.
ABM delivers the consistently relevant experience that customers demand.
The highly personalized nature of the discipline means that all interactions are synchronized across channels and highly targeted to maximize relevance. You look like one company with a single, compelling story.
Account Penetration and Expansion
ABM guides intelligent account expansion at existing customers.
We all know that it’s easier to retain revenue and sell to existing customers than it is to land new customers; Account Based Marketing aligns more of the marketing department’s efforts onto these kind of high ROI activities. In fact, the High-Performance ABM Capabilities Benchmark Report of December 2015 found that while the primary motive driving less mature ABM programs is prospecting for new customers, as ABM maturity increases, the motive swings dramatically toward cross/up selling to existing customers.
Highest ROI for B2B Marketing
The High-Performance ABM Capabilities Benchmark Report of December 2015 also reported that over two-thirds of study participants report that ABM is favorably impacting their revenue, and that for those using ABM, over 80 percent state that it is one of the most important revenue generating strategies in use.
Finally, perhaps the best quote comes from ITSMA, who coined the phrase Account Based Marketing. They report:
ABM delivers the highest Return on Investment of any B2B marketing strategy or tactic. Period.
What benefits are you seeing from Account Based Marketing?