Account Based Marketing (ABM) is not a new marketing strategy. However, it has recently gained momentum and has seen some evolution in how marketers approach campaigns and reporting. We hosted a webinar with ZoomInfo where we decoded ABM in today’s marketing landscape and pinpointed metrics that measure real success. Keep reading for an overview of ABM, a recap of some of the most insightful portions of the webinar, and answers to some of the questions we received from the audience.

Understanding Account Based Marketing (ABM)

Unlike traditional mass marketing approaches, Account Based Marketing is a strategic marketing approach that targets and engages a predefined set of high-value accounts with personalized campaigns designed to build relationships, accelerate sales cycles, and drive sustainable growth.

Expert Marketing Advisors’ Head of Strategy, Stephen Banbury explained in the webinar, “When I think about ABM, I think back to what I really call targeted marketing – whether that’s one to one, one to few, or one to many – and essentially going from the most personalized outreach to leveraging common characteristics.”

Crafting a Successful ABM Strategy

One question we received during our webinar was, “What are the common activities in ABM? Email, PPC, focused SEO?”

ABM activities can differ depending on your industry, offering, and target accounts. However, the most common activities include personalized emails sent to key decision-makers, advertising tailored to relevant keywords (SEM) or audiences (paid social), focused SEO efforts, engagement on social media with target stakeholders, and sales enablement to align marketing efforts with sales teams for a cohesive buyer journey.

Before launching any of the above activities, it’s important to understand the core principles and strategies to set the foundation for your ABM campaign. This includes:

• Account selection: Thorough research and analysis are crucial for identifying the ideal accounts to target. Consider factors like size, industry, growth potential, and decision-makers. Tools like firmographic and technographic data can be valuable assets in this process.
• Collaboration: Alignment between marketing and sales teams is critical for ABM success. Establish clear communication channels and define shared goals and objectives. Regularly collaborate on campaign development and ensure both teams have a deep understanding of the target accounts.
• Tools and Technology: Several technologies can streamline and enhance ABM initiatives. Consider leveraging marketing automation platforms, customer relationship management (CRM) software, and account based marketing platforms designed specifically for ABM execution.
• Measurement: Tracking key performance indicators (KPIs) to monitor progress and demonstrate the effectiveness of ABM initiatives.

Metrics and KPIs for Measuring ABM Success

Defining the success of your ABM efforts requires carefully chosen Key Performance Indicators (KPIs). These metrics will help you track progress, demonstrate ROI, and identify areas for improvement. Here are some key ABM KPIs:

• Engagement Metrics: Track metrics like website visits, email opens, click-through rates, and social media engagement to gauge the level of interest and interaction from your target accounts.
• Spend Per Account: One metric our guest Ben Daters, VP of Emerging Products & MarketingOS at ZoomInfo finds crucial is spend per account. He explained that having a vast list of 10,000 target accounts might seem appealing, but if your budget is limited, spreading it across numerous accounts dilutes the impact. Historically, ABM providers allowed unlimited accounts and campaigns, leading to minimal spend per account, often below $1. However, by strategically limiting campaigns and accounts within your ABM program, you can increase the spend per account, which typically translates to better results, especially when targeting larger enterprises. This metric, along with Return on Ad Spend (ROAS), becomes a crucial benchmark in ABM strategy, emphasizing the importance of brand and content marketing in educating and engaging high-value buyers.
• Pipeline Contribution: Monitor how ABM initiatives contribute to the sales pipeline by tracking metrics like the number of qualified leads generated and the conversion rate from leads to opportunities.
• Revenue Impact: Ultimately, the true measure of ABM success is its impact on revenue. Track metrics like closed deals, contract value, and customer lifetime value to demonstrate the financial return on your ABM investment.

Challenges and Solutions in ABM

Implementing a successful ABM strategy comes with its own set of challenges. Here are some common roadblocks and potential solutions:

• Data Quality: Ensure accurate and up-to-date data on your target accounts to avoid wasted effort and missed opportunities. Utilize data cleansing and enrichment strategies as needed.
• Resource Constraints: ABM can be resource-intensive, requiring dedicated personnel and budget allocation. Prioritize effectively, leverage marketing automation tools, and explore outsourcing options if needed.
• Alignment Issues: Address potential misalignment between marketing and sales teams by establishing clear communication channels, defining shared goals, and fostering a collaborative environment.
• Attribution and Measurement: Accurately measuring the impact of ABM can be complex. Invest in robust analytics tools and develop a comprehensive attribution model to track the effectiveness of your campaigns.

Another question we received during our webinar was, “We spend a large marketing budget on digital campaigns. But, our niche is extremely specific so we don’t get a lot of leads. But just 1 good lead can be a huge deal if it closes. So is it justified?”

The key here is to ensure that your campaigns are effectively targeting and engaging with your niche audience. Ben Daters mentioned that by limiting the number of campaigns and the number of accounts that are within your ABM program, you should see that the quality of the lead increases and your campaigns yield better results.

Stephen Banbury recommends calculating the ROI of your digital marketing campaigns by comparing the cost of the campaigns to the revenue generated from successful leads. Even if the number of leads is low, if they are of high quality and likely to close, resulting in significant revenue, the investment might be justified. Also, if the CLV significantly exceeds the cost of acquisition, your marketing spend may be justified.

Some other things to keep in mind:

• Even if immediate conversions are low, your digital marketing efforts contribute to brand awareness and market positioning. Being visible in the right places enhances your reputation and can attract business opportunities indirectly over time.
• Continuously analyze the performance of your digital campaigns and gather feedback to understand what works and what doesn’t and then refine your approach as necessary.
• Lastly, consider looking at what your competitors are doing and how much they are investing in marketing. If your competitors are investing similarly and seeing results, it could be an industry-standard investment.

By embracing ABM best practices, you can unlock the tremendous potential of ABM and achieve significant business growth. Remember, ABM is an ongoing process that requires continuous adaptation, innovation, and a commitment to measuring success. Regularly evaluate your strategies, refine your approach, and use data-driven insights to optimize your ABM efforts for long-term success.