According to SiriusDecisions, 92% of B2B marketers consider account-based marketing (ABM) “extremely” or “very” important to their marketing efforts. At the same time, only 20% of respondents reported having a full ABM program in place for a year.
Why are so many businesses making a shift towards an ABM strategy? In short, it’s typically for one of two reasons:
- They have a limited addressable market
- They find the Pareto Principle applies: 80% of revenue comes from the top 20% of accounts
ABM moves away from a broad-based lead generation method, and instead, strategically focuses on key account growth. With this approach, account-based marketing is used to grow revenue by increasing your conversation rate and your average deal size . We can model this as:
↑ Conversion Rate x ↑ Average Deal Size = ↑ Revenue
Is ABM Right for You?
While account-based marketing is every B2B marketer’s favorite buzzword, it is not necessarily the right approach for all businesses. For example, a company that offers a low-cost product and has a large addressable market might want to use a broad-based marketing approach to cast a wider net over their target market.
So how do you determine if ABM is right for you? The first step is getting a conversation started with your internal stakeholders. Make sure you include key players across marketing leadership, sales leadership, demand generation, marketing and sales operations, and potentially even your top performing sales reps.
Next, walk through this simple check list to evaluate whether or not ABM is right for you:
The ABM Checklist
Do you have a B2B Sales Org?
Do you have a limited addressable market?
Do you have a large average deal size?
Do you value lead/account quality over quantity?
Does your product/service have a long sales cycle?
Do your customers demand a high level of personalization throughout the sales cycle?
Are several buyers typically involved in a purchase decision of your product/service?
Do you have high potential for up/cross-sell opportunities?
Does sales focus on a limited number of top accounts?
Is aligning your internal sales, marketing, and service teams a priority when it comes to targeting key accounts?
If you answered yes to two or more of these questions, an ABM approach may be right for you. If you answered yes to all of these questions, ABM is a must!
Getting Started with ABM
It might be intimidating to think about launching your ABM strategy, but it doesn’t have to be! Here are some helpful resources to get you started:
- Blog: Running an Integrated ABM Campaign in 5 Steps
- E-Book: Elevate Your B2B Marketing: A Guide to Account-Based Marketing
- Webinar Recording: Simple and Effective Account Based Marketing: Proven Strategies for Success in High Value Accounts