Account-Based Marketing (ABM) is not as simple as it sounds. The concept is simple enough, but executing it requires a lot of foundational building blocks to be in place - which is why ABM initiatives fizzle for four common reasons that you can avoid.
In Demandbase’s 2020 ABM Market Research study, ~900 executives were asked about their top challenges in implementing ABM programs. The top four included Data Quality, Budget, Execution and Technology.
To achieve the many promised benefits of this technology, enterprises should commit to fundamental changes in process, technology, and training.
Let's examine the four greatest reasons why a company may not fully be ready for ABM, based on this survey and my own experiences working with ABM across enterprises.
Need a starting point? Read our Executive's Guide to ABM blog for a strategic overview.
When asked about top priorities for ABM in 2020, survey responses did not completely align with the challenges described above.
Instead, participating executives showed intention to focus on Execution, Data Quality, Alignment and Measurement in that order:
Why is “Lack of ability to execute” the challenge that rose to top priority? Perhaps because no one is quite sure what good looks like!
ABM is still evolving, and the goalposts keep moving. As I pointed out in a blog titled “How much tech do you REALLY need for ABM?” purchasing a robust software solution does not guarantee that your employees will know what to do with it. Skill-building should come before and during ABM technology, which should not be purchased as a “silver bullet”.
Skill-building should come before and during ABM technology implementation. But what good is an expensive vehicle if no one can drive it? Consider starting with the tools you’ve got, pick some spot solutions as your program matures, and go full-funnel when your MarTech can’t keep up.
Based on “ABM Execution’s” place at the top of the priority list, it seems executives understand that skill-building comes first!
According to Demandbase, “Data quality is holding ABM back from success…Contact and account data quality is an issue that has plagued the success of digital marketing programs since the invention of CRM.”
Many blogs in the market have been dedicated to data quality, but ABM has a few specific problems:
When Demandbase asked companies to rate their sophistication across the five core parts of an account-based approach, executives gave these responses in order of strongest to weakest:
Executive perception of alignment between Marketing and Sales may be wishful thinking.
In our experience, ABM initiatives succeed when driven top-down across the company.
ABM must be a commitment on both sides. It requires senior executive commitment and sponsorship across all Marketing and Sales functions. Some best practices include:
Along with Data Quality issues, many companies have associated gaps in their Lead Management processes. In particular, lead scoring models are often inadequate to identify Marketing Qualified Accounts accurately.
Account Engagement Scoring is an important practice because it triggers activity more quickly when intent is evident across several key-account contacts.
The ABM Council recommended in the previous section is the appropriate place to review and improve lead management processes, definitions and hand-offs for target accounts. Here are some additional concepts the Council should define and decide together:
Participating executives who described having full, mature ABM programs placed “Measurement” as top priority, with Execution moving to second place. Because what gets measured properly gets done.
Account-Based Marketing can absolutely be a game-changing endeavor for a company - but it isn't easy.
Successful ABM requires skill-building, data enhancement, top-down sponsorship, and cross-functional commitment ... and many companies don't have the foundation in place to maximize ABM's true potential.
If you're considering adopting or enhancing ABM within your company, here's some helpful next steps: