Commentary

The ABM Comfort Zone: B2B Brands Are Earning ROI

Account-based Marketing (ABM) is working for at least some B2B brands. 

Of all B2B marketers, 53% of users say ABM generates more revenue than other marketing efforts. And it produces decent return on investment — for some, according to State Of Account-Based Marketing, a study by Demand Spring. 

Granted, 26% are unsure of the return on investment. And 26% say their ABM is 49% or less. But 17% enjoy ROI of 50% to 74%, and 12% generate more than 200%. 

Meanwhile, 14% have ROI of less than 10%, and 4% from 75% to 100%. A mere 1% have a negative ROI. 

Two-thirds of all B2B firms are now using ABM, the study says.

Of the B2B marketers polled, 27% began implementing ABM two years ago or more. Another 24% began between one and two years ago, and 15% began one year ago. 

But 28% have not yet started — they plan to do so within the next year. And 6% do not currently have plane to start using ABM.  

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Their goals are: 

  • Generating new business — 74% 
  • Increasing revenue — 54%
  • Increasing engagement — 46% 
  • Customer retention — 29% 
  • Other — 6%

Note: The sample for this survey is small: 100 respondents. But it may serve as a snapshot. 

That said, the study shows that some brands are devoting a fair portion of their marketing budgets to ABM: 24% are allocating 50% to 74% to ABM. And 6% are spending from 75% to 100%.  

However, 31% are devoting from 11% to 49%, and 23% are devoting less than 10%. 

And ABM is used in a fair percentage of their marketing efforts:

  • Between 11%-49% — 31%
  • Between 50%-74% — 29%
  • Less than 10% — 23% 
  • Between 75%-100% — 5% 
  • Unsure — 12%

How do they measure success? With these metrics:

  • Pipeline created — 51%
  • Revenue generated — 50%
  • Won accounts — 41%
  • Account engagement — 36%
  • Engagement metrics — 33% 
  • Customer retention — 22% 
  • Campaign metrics — 19% 
  • Cost acquisition — 17%
  • Deal size — 12% 
  • MOAs — 10% 
  • Other —5%

Several of these metrics cover email marketing. For example, those on engagement and campaign results. Companies need a reliable email system that can be used by sales teams, and a real-time data feed.

As in all marketing, silos are an inhibiting factor. But some brands say ABM produces an increase in sales and marketing alignment:

  • There has been a significant increase — 28% 
  • There has been a moderate increase — 47% 
  • There has been no increase — 4% 
  • There has been a decrease — 2% 
  • Unsure — 19%
1 comment about "The ABM Comfort Zone: B2B Brands Are Earning ROI".
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  1. Rick Corteville from Lenovo, September 26, 2022 at 5:10 p.m.

    Thanks for the recap - what is the source of this data?

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