The trouble with ABM

Account-Based Marketing (ABM) has been hailed as the silver bullet for targeting high-value accounts with surgical precision. It's the strategy that many businesses have latched onto, believing it to be the ultimate solution for driving growth. But here’s the hard truth: Although undoubtedly powerful and proven strategy, ABM is not the panacea it’s often made out to be. Whilst ABM continues to be a key strategy in enterprise B2B marketing, not recognising its limitations could undermine your performance and growth.

The business landscape is more competitive than ever, and resting on the laurels of ABM alone could be a costly mistake. The obsession with targeting a select few high-value accounts often comes at the expense of broader market opportunities. An increasing number of marketing leaders will need to confront the uncomfortable reality that ABM, for all its benefits, may simply not be enough to drive the growth their organisation demands.  

Falling into the trough of disillusionment

The initial excitement around ABM is showing signs of waning. Recent reports from leading firms like Forrester, McKinsey, and others highlight emerging challenges and a shift in sentiment.

Analysts and industry observers have discussed the broader trend of ABM entering a phase of disillusionment, akin to the "trough of disillusionment" in Gartner's hype cycle. This phase is characterised by a recognition that whilst ABM is valuable, it is not the panacea it was once thought to be. Progressive marketers are beginning to learn that ABM needs to be part of a broader, integrated marketing strategy rather than a standalone solution​. Some of the most common problems they encounter are:

1. Challenges with scalability: While ABM has been effective for targeted, high-value accounts, many organisations struggle to scale these efforts. The complexity and resource demands, particularly in executing one-to-one ABM strategies, have made it difficult for smaller companies to maintain momentum.  

2. Budget reallocations and shifting priorities: ABM budgets have remained relatively stable, with only a modest decline. However, there has been a noticeable shift in how these budgets are allocated, with more spending on digital advertising at the expense of traditional ABM tactics. This suggests that while ABM remains a priority, companies are re-evaluating how best to implement it amidst changing market conditions​.  

3. Resource intensity: ABM requires substantial investments in time, personnel, and technology. Each campaign must be tailored to individual accounts or small clusters, demanding a high level of customisation. This approach quickly becomes costly and labour-intensive.

4. Account selection: It is estimated that 46% of marketers struggle with choosing the right accounts to target. ABM is celebrated for its precision in targeting specific, high-value accounts. However, this precision can come at a significant cost – both literally and figuratively.  

5. Proving value: Measuring the return on investment (ROI) for ABM can be complex, particularly in the short term. The success of ABM campaigns often involves multi-touch attribution across various stakeholders, making it difficult to quantify the exact impact. This complexity can make it challenging for businesses to justify continued investment in ABM.

In response to concerns over the limitations of ABM, many businesses are adopting a full-funnel approach to growth and revenue. This strategy addresses the entire buyer's journey, from initial awareness to post-purchase engagement, ensuring that no potential customer is overlooked.

Account-based strategies are growing in popularity due to their ability to deliver a higher ROI and revenue growth than any other marketing discipline for 73% (Elevating ABM, 2022) and 53% (2022 State of ABM report) of B2B marketers respectively. ITSMA, ThinkJPC1

Look to the full-funnel for far-reaching, sustainable growth

Anyone still relying solely on ABM, is not just playing with fire – they’re ignoring the blazing inferno of market evolution that's happening all around them. To truly thrive organisations of every shape and size need to broaden their account-based strategies to embrace the full funnel.  

A full-funnel approach provides a comprehensive framework that covers every step on the buyer's journey. This means engaging with potential customers from the moment they become aware of your brand through to their decision-making process and beyond. Addressing each buying stage, ensure that less opportunities are missed and that customers are supported throughout their journey.

By building a broader marketing strategy that reaches from top of funnel awareness and early engagement to opportunity pursuit and on to renewals and customer lifetime value, businesses can attract and nurture a larger audience while still providing personalised experiences at key touchpoints. This scalability allows them to adapt quickly to changes in the market and capitalise on new opportunities as they arise.

Continuous engagement with prospects, helps to move them through the funnel more efficiently. By providing the right content and support at each stage, businesses can shorten the sales cycle, as prospects are more informed and ready to make decisions more quickly. Essentially, they are better conditioned for a sales approach.  

Marketing efforts are better aligned with overall business goals, including brand awareness, lead generation, and customer retention. This alignment is crucial for sustainable growth and revenue generation. By taking a holistic view of the customer journey, businesses can ensure that all aspects of their sales and marketing efforts are working together towards the same objectives.

A full-funnel approach harvests data from all stages of the customer journey, enabling richer insights to inform more effective marketing strategies. By analysing data across the entire funnel, businesses can refine their targeting, messaging, and overall campaign effectiveness, leading to better outcomes.

Gartner research finds that when B2B buyers are considering a purchase‚ they spend only 17% of that time meeting with potential suppliers.

Sales and marketing teams alignment can improve deal closing rate by 67% Marketo and Reachforce, Unboundb2b2

Don’t take your eye off your ABM goals – just broaden your horizons

While Account-Based Marketing offers a powerful approach for targeting specific high-value accounts, its limitations can sometimes hinder broader growth initiatives. A full-funnel approach, on the other hand, provides a more balanced and scalable strategy that supports long-term growth and revenue generation. However, this does not mean that ABM should be discarded. Instead, the most effective strategy may lie in the integration of ABM with a full-funnel approach.

In an increasingly competitive B2B landscape, the ability to adapt and evolve is critical. By expanding their account-based approach beyond ABM, ambitious organisations will position themselves for long-term success, building stronger customer relationships to drive sustainable revenues and growth.  

It’s time to challenge the status quo, to disrupt your own strategies before the market does it for you. The full-funnel approach isn’t just an alternative; it’s the future. And those who fail to adapt increasingly risk falling behind.

Aligned teams close more and churn less. Businesses with strong sales and marketing alignment are 67% more effective at closing deals and 58% better at retaining customer. Foundry, WebFX3