Rethinking ABM: Outperforming the Market in the World of AI
Executive Summary
Rethinking ABM: Outperforming the Market in the World of AI provides a comprehensive analysis of the current state of account-based marketing (ABM) in 2023. Based on the 7th annual benchmark study by Momentum ITSMA and the ABM Leadership Alliance, the report offers insights into ABM strategy, staffing, tools, and metrics. Key findings highlight the transformative potential of AI in ABM, while also identifying fundamental challenges that need addressing.
Great Expectations
ABM remains a top priority in B2B marketing, with companies dedicating a significant portion of their marketing budgets to it. Over 66% of companies plan to increase ABM spending in 2024, and ABM is the leading marketing priority for the third consecutive year. Companies are adopting various ABM approaches, with over half using at least two types of ABM, reflecting a shift towards more comprehensive strategies.
Promise vs. Reality
Despite substantial investment, most ABM programs achieve only modest success. Only a small minority of programs significantly improve key metrics (more than 10%). Challenges remain similar to those faced 10 and 20 years ago, including aligning with sales, leveraging data for engagement, and demonstrating ROI. Many programs continue to focus primarily on lead generation rather than long-term growth.
Priorities for 2024
Key priorities for 2024 include:
- Strategic Alignment: Aligning ABM with corporate goals and fostering an ABM mindset within the organization.
- Tech Mobilization: Integrating data, developing insights for real-time engagement, and accelerating with AI tools.
- Balanced Investment: Optimizing cross-channel opportunities and allocating resources effectively.
- All-in Marketing: Ensuring integrated efforts across marketing channels and customer processes.
- Sales Integration: Enhancing collaboration between sales and marketing to drive account growth.
Transformation Potential with AI
Generative AI holds significant potential for transforming ABM, but its implementation is still in its early stages. Most programs are just starting to explore AI applications, with early adopters creating successful use cases across various aspects of ABM. However, the risks of misapplication are significant, and companies must navigate these challenges carefully.
Key Data Points
Budget Allocation:
- 2023 Marketing Budget Dedicated to ABM: 30%
- Plan to Increase ABM Spending in 2024: 66%
Focus on Accounts:
- Selling to New Accounts: 47%
- Growing Business with Existing Accounts: 44%
- Strengthening Executive Relationships: 29%
Types of ABM Deployed:
- One-to-One: 75%
- One-to-Few: 61%
- One-to-Many: 68%
- Single Type: 30%
- All Three Types: 25%
- Two Types: 45%
ABM Program Status with Generative AI:
- Overall Average: 1.9 (Just scratching the surface)
- Small Companies: 2.2 (Moderate progress)
- Large Companies: 1.6 (Early exploration)
These insights provide a clear roadmap for organizations looking to enhance their ABM strategies and capitalize on the transformative potential of AI.
