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  • Patricia Neuray

How Account Based Marketing Can Increase Results for B2B Organizations


Account based marketing

Account-based marketing (ABM) has become a cornerstone of B2B Go-To-Market (GTM) strategies. Companies can utilize a more personalized and efficient method to drive growth and achieve business objectives by focusing on high-value accounts with tailored marketing efforts. This strategy is especially vital for organizations with smaller marketing budgets because it ensures they spend their dollars more wisely and target prospects with the most potential to make a difference to their bottom line. In this blog, Tangelo Media explores why this strategy should be essential to your B2B marketing efforts and how it can lead to greater alignment between your sales and marketing teams.


Understanding ABM in the B2B Context

ABM is not just a marketing tactic, but a strategic approach that empowers you to target specific high-value accounts. Instead of scattering your efforts, you can focus on the accounts that truly matter. However, this method requires deep research and personalized marketing tactics to engage all the key decision-makers within target accounts. The primary goal is to build meaningful relationships and deliver customized solutions that address the unique needs of these accounts, leading to higher conversion rates and long-term partnerships and higher satisfaction for your customers.


  1. Enhanced Targeting and Personalization

ABM enables businesses to precisely target their marketing efforts, ensuring that resources are focused on accounts with the highest potential for revenue generation. Personalized content and campaigns resonate more deeply, increasing the likelihood of engagement and conversion. 85% of marketers who measure ROI describe ABM as delivering higher returns than any other marketing approach.


2.    Improved Alignment Between Sales and Marketing

Account based marketing is not a solo endeavor. It requires closer collaboration between sales and marketing teams to align goals and strategies. By working together, these departments can create cohesive campaigns that move prospects through the sales funnel. This collaborative approach is key to the success of ABM. A study done by SiriusDecisions, now a part of Forrester, found B2B organizations with tightly aligned sales and marketing operations grew their revenues 24% faster in a three-year period compared to those whose teams work separately. And these same companies increased their profits 27% faster during the same three-year period.


3.    Increased ROI

Concentrating on high-value accounts ensures that marketing budgets are spent more efficiently, leading to better ROI. Personalized approaches are more likely to convert leads into customers, further increasing the return on investment. In fact, 84% of businesses using ABM have experienced an increase in revenue, with 28% seeing a rise of 20% or more.


4.    Strengthened Customer Relationships

ABM is not just about revenue generation. It's about building stronger, more trusted relationships with your customers. Personalized strategies enable deeper engagement with target accounts, addressing their specific needs and delivering solutions that precisely meet their requirements. This leads to higher satisfaction and loyalty. ABM practices can lead to a 171% increase in annual contract value (ACV) and a 150% increase in customer lifetime value (CLV).


Conclusion

In the competitive landscape of B2B marketing, ABM stands out as a powerful strategy for achieving GTM objectives. Its ability to enhance targeting, personalize engagements, and foster collaboration between sales and marketing teams makes it an invaluable tool for businesses looking to optimize their marketing efforts and drive sustainable growth. By focusing on high-value accounts and delivering tailored solutions, ABM improves ROI and builds more robust and meaningful customer relationships.


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Sources:

  1. Terminus, "State of ABM Report 2022."

  2. ITSMA, "2021 B2B Marketing Benchmark Study."

  3. Demandbase, "The State of ABM 2021."

  4. SiriusDecisions, "2019 State of ABM Study."

  5. Marketo, "ABM and the Marketing-Sales Alignment."

  6. Forrester, "2019 ABM Survey."

  7. Engagio, "ABM Outlook Survey 2020."

  8. TOPO, "Account-Based Benchmark Report 2019."

  9. Altera Group, "State of ABM 2021."

  10. Gartner, "ABM: Key Insights and Trends 2020."

  11. MarketingProfs, "ABM Benchmarking Report 2020."

  12. InsightSquared, "ABM Effectiveness Study 2021."

 

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