Account Based Marketing— it’s the phrase on the tip of every marketer’s tongue.
While it might seem like ABM took the marketing world by storm overnight, the concept has been around for decades in different forms.
Simply defined, an Account Based Marketing strategy is similar to what is traditionally called enterprise sales. The primary difference is that an account based strategy can be used to target a company of any size.
The proliferation of new B2B technology has made it more simple and cost-effective to implement and scale ABM, making it a viable strategy for organizations of all shapes and sizes.
Furthermore, intense competition for B2B customers has created a need for more targeted outbound paths to customer engagement (because as we all know, spray-and-pray just isn’t going to cut it).
When you build a strategy, you want to start with the numbers.
Below are some key ABM statistics VPs of Marketing need to know about this new (and not-so-new) method:
How many marketers are pursuing ABM strategies?
- 50% of all companies currently have ABM pilot programs in place [SiriusDecisions]
- More than 60% of companies plan to invest in ABM technology [SiriusDecisions]
- 41% of B2B marketers worldwide said they would increase spending on ABM [ITSMA]
What is ABM’s effect on sales and marketing?
- Companies are 67% better at closing deals when sales and marketing are in sync [Marketo]
- ABM directly addresses sales-marketing alignment, challenging the 50% of sales time wasted on unproductive prospecting [MarketingProfs]
- 91% of those with an ABM program in place said they were “tightly” or “somewhat or moderately” aligned with sales [SiriusDecisions]
What are some challenges ABM addresses?
- Nearly 66% of B2B buyers identified engaging key decision makers as their top challenge [Forrester]
- Only 0.75% of leads generated become closed revenue [Forrester]
- 74% of business buyers conduct more than half of their research online before making an offline purchase [Forrester]
- On average, 5.4 people are involved in today’s B2B purchase decisions [CEB Research]
- ABM strategy enables marketers to engage key personas at target companies, which is why 80% of companies say that ABM outperforms other marketing initiatives [ITSMA]
What value does ABM drive?
- 84% of B2B marketers believe ABM provides significant benefits for retaining and expanding current relationships [SiriusDecisions]
- Almost 85% of marketers who measure ROI describe ABM as delivering higher returns than any other marketing approach; half of those marketers saw significantly higher returns [ITSMA]
- When ABM has been in use for at least a year, 60% of users reported a revenue increase of at least 10% & 19% reported a revenue impact of 30% or greater [Demandbase]
- 92% of B2B marketers worldwide consider ABM extremely or very important to their overall marketing efforts [SiriusDecisions]
To learn more, check out this guide to account based marketing and sales alignment, or read about ABM’s applications in a specific industry—in this case, HR.