Is ABM the Next Opportunity for Marketers in 2021? New Study Reveals 5 ABM Priorities
We analyze the findings of new data from ITSMA on ABM adoption and maturity. We also explore how marketers can make the most of their ABM strategy in 2021.
New research from ITSMA and ABM Leadership Alliance reveals key trends in ABM adoption.
In 2020 account-based marketing (ABM) continued to gain traction, reveals a new study by ITSMA and ABM Leadership Alliance. Marketers can drive strategic business impact as B2B buyers accelerate digital transformation for their own growth and success.
The report suggests that ABM programs need to adapt quickly to respond to the opportunity. To thrive in 2021 and beyond, marketers must focus on five priorities that the most effective programs have already emphasized in their 2020 pivot:
- Accelerate agile
- Deepen account insight
- Strengthen sales collaboration
- Build a blended strategy
- Invest in metrics
Why ABM Is Still the Most Effective B2B Marketing Strategy
As B2B organizations launch new ABM experiments and small pilot programs, average spending on ABM represents a huge share of the total marketing spend.
The report found that smaller companies, perhaps not surprisingly, dedicate more of their total marketing budgets to ABM than larger companies—32% for companies under $100 million in annual revenue compared with 21% for companies with more than $1 billion annual revenue.
Also read: Time To Add Account-Based Podcasting To Your ABM Strategy
A majority of companies with ABM programs have witnessed measurable business improvement with targeted relationship development and account-based revenue; a third of these companies have also realized improved reputation and brand perception.
ITSMA and ABM Leadership Alliance have asserted that most ABM programs generate better ROI than other types of marketing. In 2020, three-quarters of the companies surveyed cited higher ROI, with about one fourth citing significantly higher return. Importantly, this includes companies just starting out with their ABM programs and those with more experience.
With a long history of success, new companies continue to explore and experiment with ABM initiatives. Even though many programs date back to the early 2010s or earlier, most current practitioners are still beginning their ABM journeys. The report highlights that two-thirds of ABM programs today are in the earliest phases of development. Just one-fifth are in expansion mode, and only 13% are fully embedded in marketing and corporate strategy.
As the ABM discipline continues to mature, growing diversity of approaches building on the standard three types have emerged. Hybrid systems allow marketers to cover more accounts with a lighter touch while going deep with subsets and near-term opportunities. Variations of each type include different approaches to account selection, staff coverage, deliverables, and collaboration.
However, amid the continued growth in ABM, most companies are still early in leveraging specialized tools to support their programs. Many rely mainly on core tools and systems, including email, web, CRM, and social media; only a relative few have already developed a mature tech stack. Looking ahead, top planned investments for next year include ABM platforms, attribution and reporting, intent, and direct mail.
The State of ABM in 2020
The study found that the most experienced ABM programs are much more likely to drive significant improvement in critical measures of ABM success, including customer perception (reputation), account relationships, and pipeline and revenue growth.
In response to COVID-19, many companies modified their ABM business objectives. The most significant shift was to focus more on growing existing accounts and supporting specific opportunities. Few companies scaled back on existing ABM objectives, with the modest exception of some companies moving away from using ABM to enter new markets or sell to new types of buyers. Even this group, however, was smaller than those putting more focus on those same objectives.
As the world went virtual overnight, many companies developed new tactics to engage ABM target accounts contacts. Top new tactics across the three types of ABM have included small virtual meetings and events, direct mail and gifting, tailored content development and delivery, and paid social media. All emphasize engaging executives with more tailored and interactive content and thought leadership.
Also read: 75 Account-Based Marketing (ABM) Statistics Every Marketer Should Know
Amid the ongoing uncertainty, ABM leaders point to several critical challenges as they look toward 2021. Tracking and measuring ABM results tops the list, but other common challenges including customization, justifying program cost, educating sales, personalization, and, perhaps ironically, keeping up with sales team demand.
What Is Next for ABM in 2021?
Most B2B buyers have held steady or increased their IT spending this year, even with all the economic disruption. For companies selling into IT, this is great news. Of course, the big question is what specific types of solutions are our customers and prospects prioritizing? ABM is all about targeted and customized solutions; marketers need to know that their potential buyers continue to invest in the types of solutions they can provide.
B2B buyers have made a dramatic pivot through 2020, from the required reaction to the COVID-19 disruptions to a new focus on innovation and growth. Digital acceleration is the primary focus. Research with B2B buyers suggests that not only are businesses already far along with their digital transformation, but their current priorities are to go even faster. Marketers who can support digital acceleration have substantial new opportunities to collaborate with customers for mutual advantage.
Also read: How ABM Drives Better Sales-Marketing Alignment: 6sense Unveils New Features
The urgent focus on digital acceleration has put solution providers front and center. Historically, B2B buyers have looked first to analysts, consultants, and peers as their most trusted sources for information and ideas. Solution providers have typically faced a credibility gap with their sales-first approach. Today, though, buyers are focused much more on practical guidance for digital acceleration, and solution providers have moved to the top of the list of trusted sources of information.
The opportunity for ABM to drive strategic business impact has increased dramatically as B2B buyers accelerate digital transformation for their own growth and success. Yet ABM programs must move quickly to respond effectively to the opportunity. To thrive in 2021 and beyond, ABM leaders need to focus on the five priorities we have listed above.
