Drive Demand Performance Outcomes with ABX

Summary

With many B2B organisations looking to optimise their budgets for 2024, Account Based Marketing (ABM) continues to be a chief consideration because it allows for a targeted and personalised approach, ensuring resources are allocated strategically to engage high-value companies and maximise ROI.

The landscape of ABM in B2B marketing is marked by intriguing trends and challenges, painting a compelling picture  for businesses aiming to forge stronger connections with their target audiences. In this dynamic environment, personalisation stands as a rising trend, propelling the evolution of ABM into its successor, Account Based Experience (ABX). A significant 80% of B2B buyers now expect a personalised experience when dealing with vendors, a telling statistic reflecting the demand for tailored interactions in today's marketplace (Salesforce, 2022).

Despite the growing need for personalisation, the adoption of ABM reveals a certain level of stagnation, with few programs reaching full maturity. In fact, less than 20% of organisations report that ABM programs are fully embedded  in the business and less than 25% have solidified key elements of their approach (Momentum ITSMA, 2022).

"This stagnation is further exemplified by the fact that most marketing teams continue to execute strategies that focus on generating leads at target accounts rather than fully addressing the buying committee and all its members. This presents both a challenge and an opportunity for B2B marketers, as the potential for deeper engagement with all stakeholders within a buying group remains largely untapped."

ABM MOMENTUM DESPITE MODEST GROWTH OUTLOOK

In 2022, ABM received more than a quarter of all marketing spend, according to Momentum ITSMA. In an encouraging sign of its continued relevance, 71% of companies were poised to increase their ABM spending in 2023—a 13.1% year-over-year increase. This is in contrast to 2021 when 53% of companies planned to reduce ABM spending  (State of B2B Marketing Budgets Survey, 2023).

Such a shift in investment signifies a renewed focus on the power of ABM to drive business growth, particularly as more ABM strategies receive executive support—highlighting top-level buy-in for these initiatives. As a testament to their effectiveness, personalised ABM marketing campaigns have been proven to boost conversion rates  by up to 20% and contribute to a 40% increase in client engagement.

With 67% of brands already utilising ABM in 2023, it is evident that this strategy continues to be the most dominant GTM approach in B2B marketing. As organisations increasingly recognise the value of ABM and its ability to connect with buyers, the stage is set for 2024 to be a transformative year.

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COMMON ABM CHALLENGES

Lead lists can stand in the way of personalisation

Lead lists remain an integral component of the lead generation strategies employed by a substantial number of organisations. As per recent statistics, 68% of B2B marketers opt to purchase lead lists, with the average cost per lead ranging from $0.25 to $10 USD (Clutch, 2022).

Whilst lead lists have their place in sales and marketing strategies, they can obstruct personalisation. ABM demands a tailored marketing approach for specific target accounts, but lead lists typically offer only basic contact details, impeding deep personalisation—not to mention the challenges with opt-in requirements. Lead lists lack the depth of information required for crafting highly relevant content and programs that address the unique needs of each target account.

“Lead lists quickly become outdated as businesses evolve and team members change roles. This can result in targeting the wrong individuals or sending messages to those decision makers no longer relevant  to the buying process, hindering personalisation efforts.”

Personalisation at scale requires a focus on data management

Whilst the implementation of ABM can be a transformative strategy for organisations, it also presents formidable challenges. One of the foremost hurdles faced by companies is personalisation at scale. This challenge is exacerbated  by the fact that intent data, a crucial ingredient for personalisation, has been shown to drop off after the top of funnel (TOFU) stage for many organisations.

The personalisation dropoff: Intent data usage
declines significantly through the pipeline

Source: Momentum ITSMA’s Elevating ABM:
Building Blocks for Long-Term Growth: 2022 ABM Benchmark Study

In addition, data analytics, instrumental for interpreting and acting upon data insights to implement personalisation, remains an underdeveloped skill, with just 8% of marketers reporting proficiency or training in this area. Furthermore, there is a notable lack of investment in data management technologies within the context of ABM. In addition, only 20%  of low-performing organisations utilising ABM leverage data augmentation tools versus 37% of high-performing organisations (DemandGen, 2023).

To address these challenges and move toward an ABX framework, organisations should consider a multifaceted approach:

Training and hiring: It is imperative to invest in training current team members and hiring individuals proficient in data analytics. This will empower the organisation to better leverage data for decision making, personalisation, and performance measurement.
Data management technologies: Given the limited adoption of data management software in ABM programs, organisations should allocate resources to implement robust data management technologies. These tools will enhance the collection, storage, and analysis of data, providing a solid foundation for effective ABM strategies.
User experience (UX) and client experience (CX): ABM impacts the entire client journey. As such, enhancing UX and CX perfectly aligns with an ABX approach. Improving the experience at every touchpoint contributes to more successful ABM efforts.
Intent data across the buyer’s journey: To overcome the challenge of intent data dropping off after the TOFU stage, organisations should consider assigning resources to integrate and utilise intent throughout the entire sales funnel. This requires advanced analytics and an understanding of how intent data evolves as prospects move through the buying process.
Data augmentation tools: High-performing organisations are more likely to utilise data augmentation tools such  as Clearbit or Lattice Engines. Consider adopting these tools to enrich your existing data and enhance the personalisation and targeting capabilities of your ABM efforts.

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ABM is an organisation-wide framework

The relatively low maturity in ABM at numerous organisations suggests that it is frequently approached as a singular campaign or a short-term tactic, rather than being recognised as a comprehensive, organisation-wide framework designed for long-term success.

A notable third of organisations report that their ABM campaigns are either underperforming or significantly underperforming. More importantly, nearly half of underperforming ABM campaigns have been active for less than one year, whilst an impressive  66% of high-performing ABM campaigns have been running for over a year (DemandGen Report, 2023).

This data suggests a strong correlation between the implementation of ABM and the duration of programs with their performance. Achieving positive outcomes in ABM requires a long-term commitment and sustained investment.

This performance makes a compelling case for implementing ABX as a foundational framework, as it emphasizes an agile, organisation-wide, client-centric strategy.

“By adopting ABX as the guiding principle, organisations can gradually nurture their account based strategies to maturity and achieve a solidified ABX framework with well-defined tactics in place.”

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3 STEPS TO DRIVE PERSONALIZATION AT SCALE WITH ABX

The foundation of personalisation

The starting point of personalisation is also perhaps the most challenging: understanding the individual buyers that make up the buying committees of target accounts whilst balancing a revenue-centric approach with organisational objectives.

The independent buyer

Much like the B2B environment, B2B buyers have also gone through a significant shift. Buyers are becoming more self-reliant, demonstrating a preference for autonomy in their client journeys. In fact, according to a 2023 report by Gartner, 75% of B2B buyers prefer a representative-free sales experience. This indicates the need to build a level of digital self-service into client journeys and to be particularly cautious about contacting prospective buyers too early in the sales process, as doing so might  be perceived as intrusive.

However, it is important to strike a balance between self-service and human assistance as the same study found that buyers who made a digital self-service purchase are 1.65 times more likely to regret that purchase over traditional, sales representative-led buyers. In other words, pathways for digital purchasing with representative assistance reduce buyer regret by 50% compared to self-service digital commerce.

The younger buyer

B2B buyers are also getting younger, with 65% now ranging between the ages of 18 and 40, according to research from the American Marketing Association. The majority of B2B buying committees now include millennial and Gen Z decision makers.

These younger generations display distinct buying behaviours compared to their predecessors. They are more discerning, actively involved in numerous buying activities, and are more inclined to express dissatisfaction  with the purchasing process, according to 2023 Forrester research.

Fear of messing up

B2B buyers' high expectations also spill over into their internal organisations, creating a challenging environment  for buying committees, who are now under pressure to make carefully considered purchases that can readily demonstrate a return on investment. This pressure has led to a common phenomenon: fear of messing up (FOMU).

Organisations targeting B2B buyers must furnish campaigns with ample social proof, case studies, and demonstrations of their solution's effectiveness to gain their trust.

Driving agile and effective personalisation

Data management

Data management and analysis are paramount; however, few organisations designate enough resources or training to effectively enable personalisation.

This is a long standing challenge. Indeed, according to our own 2022 Voice of the Marketer research, only 16% of respondents use advanced buyer and account intelligence models to inform their sales and marketing outreach. This is set to continue as our latest INFUSE Insights revealed that, even with the data analysis allowed by AI solutions, personalisation remains  a low priority (46%) for many marketers in 2024.

As a result, organisations that make full use of data management and account intelligence stand to secure a competitive advantage in the market.

To ensure effective data management:

Only collect relevant data: Begin by identifying and collecting data that is pertinent to the target market, personas, and personalisation activity. This could include a range of information such as account and buying committee demographics, browsing behaviour, account purchase history, interaction with marketing materials, technographics, company funding, and more.

The key is to focus only on data that can provide insights into an account and its buying committee preferences and behaviour. Too much unnecessary data can cause bottlenecks and slow down processes (particularly in organisations that do not have access to data cleansing technology).
Integrate data sources: Consolidate data from various systems into a centralised source of truth, such as a cloud platform or data warehouse. This integration ensures that all teams have a holistic and unified view of your account data to inform personalisation.
Perform data cleaning: Implement data cleansing and validation processes to ensure the accuracy and consistency of your data. This involves identifying and correcting errors, removing duplicates, addressing incomplete or inconsistent data, and regularly updating data as client journeys evolve and decision makers move jobs or roles.
Enforce data security and privacy: Ensure that your data management practices comply with regional data privacy regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy  Act (CCPA). This involves taking steps to protect account data, establishing mechanisms for gaining consent,  and maintaining robust security measures.
Leverage analytics tools: Utilise analytics tools and platforms to extract meaningful insights from your account data. These tools help you track account behaviour, preferences, and engagement patterns, allowing you to make data-driven decisions. For smaller organisations with limited resources, focus on affordable or free analytics tools like Google Analytics or open-source alternatives.

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ABM approach

The choice of program structure in an ABX strategy can significantly impact the level of personalisation you can achieve. Each of the three approaches has its own implications for personalisation:

One-to-One

One-to-one programs offer the highest level of personalisation. In this approach, you are crafting and delivering unique, tailored experiences for each individual account and the buyers within them. These should include customised content, messaging, and engagement based on the specific needs, challenges, and characteristics  of each buyer at a single target account. Importantly, such a level of personalisation can be extremely effective and increase your chances of a conversion, but is also resource-intensive and time-consuming.

One-to-Few

One-to-few programs involve targeting a small group of accounts (usually fewer than ten) with similar characteristics or needs. This approach allows for a high degree of personalisation but is more scalable  than a one-to-one strategy. Content and messaging should be crafted to resonate with the common pain  points and objectives of this select group of accounts whilst still addressing their unique needs.

One-to-Many

One-to-many programs focus on a broader set of accounts. Whilst personalisation at the individual account level  is limited in a one-to-many strategy, it is still possible to segment your target audience into smaller, more homogenous groups and create tailored content and messaging for each segment. Whilst the level of personalisation is not as robust, this approach allows organisations to target more accounts with fewer resources. This kind of program is not the most ideal for ABX as it is harder to guarantee a high level of experience for each individual buyer. However, for organisations with fewer resources, this is the right place to start.

KEY CONSIDERATIONS FOR ABX STRATEGIES

Resources:

The more personalised the approach, the more resources (time, staffing, budget) it typically requires. One-to-one strategies are resource-intensive, whilst one-to-many strategies  are more resource-efficient.

Scalability:

The ability to scale your ABX program whilst maintaining a high level of personalisation  is a crucial consideration. One-to-few and one-to-many strategies are more scalable than one-to-one.

Account specifics:

Consider the unique qualities of the accounts  you are targeting. Some accounts may require  highly customised approaches, whilst others  can be effectively engagedwith more generalised, industry-specific messaging.

Technology:

Utilise marketing automation, personalisation,  and ABM tools to streamline your efforts.  An integrated tech stack can help segment your accounts, customise content and messages,  and automate outreach.

Account lifecycle:

The stage of the account's lifecycle can influence  the level of personalisation. High-value, strategic accounts may warrant more personalised  approaches, whilst newer or smaller accounts  might be suitable for one-to-many efforts.

In terms of specific programs for the most effective personalisation, this too will vary greatly by account, organisation, and the relationship between them. However, Momentum ITSMA found the below tactics the most effective per ABM program:

Source: Momentum ITSMA’s Elevating ABM:
Building Blocks for Long-Term Growth: 2022 ABM Benchmark Study

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Automation and AI

Automation and AI are indispensable tools in the pursuit of agile and effective personalisation within ABX programs. According to our 2024 INFUSE Insights, only 24% of marketers currently harness AI for ABM to prioritise and identify target accounts and buyers, despite its immense potential for optimisation.

The true power of automation and AI lies in their ability to provide data-driven insights into account and client behaviour, preferences, and intent. By employing these technologies, ABX programs can identify the most promising accounts, streamline their outreach efforts, and deliver content that resonates with individual accounts and committee members.

Moreover, our report reveals that 46% of marketers utilise AI for campaign personalisation and customisation, indicating a gap in realising the full potential of personalised marketing. AI's analytical capabilities enable the examination of vast datasets to fine-tune messaging, content, and interactions—all on a grand scale.

“In an era where buyers expect nothing less than personalised engagement, embracing automation and AI is not just a competitive advantage but a necessity for the success of ABX programs. If applied correctly, it allows businesses to foster deeper, more meaningful connections with their target audiences.”

This data-driven approach ensures that each interaction is tailored  to the unique needs and interests of individual accounts and buying committees, thus delivering a seamless and highly personalised experience that significantly enhances the likelihood of conversion and long-term loyalty.

How do you foresee AI being used to improve your
revenue and demand performance over the next 12 months?

Source: INFUSE Insights 2024 Voice of the Marketer

A personalised and memorable brand experience

Providing a personalised and memorable brand experience, central to ABX, is the key to success. In a time when 84% of B2B customers consider client experience an important factor in their decision-making process, and 74% are willing to pay more for it, it is crucial to explore how User Experience (UX) and Client Experience (CX) can work together to create a seamless, impactful brand engagement with targeted accounts.

ABX revolves around tailoring marketing and sales efforts to address the specific needs and preferences of high-potential accounts whilst delivering a holistic, exceptional experience. This is where brand experience plays a pivotal role:

Personalisation:

ABX demands highly personalised interactions. Brand experience is about ensuring that every touchpoint, from marketing content to the product itself, resonates with the unique requirements of target accounts. UX and CX tools help in collecting and analysing data to facilitate this personalisation of client journeys and experiences.

Consistency:

A seamless brand experience necessitates consistency across all touchpoints. UX focuses on creating user interfaces that are easy to navigate and visually cohesive, whilst CX ensures that every interaction is aligned  with a brand's values and promises.

Emotion and trust:

A remarkable brand experience invokes positive emotions and builds trust. CX strategies involve understanding  the buyer’s journey, pain points, and aspirations, whilst UX is responsible for designing interfaces and products  that tread the line between functional and enjoyable.

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INFUSING ABX INTO YOUR GTM MODEL

Incorporating ABX into a GTM model involves a strategic approach that spans various stages from foundation to growth and should always consider the size of the organisation and the resources available.

Here are five actionable steps to implement ABX into your GTM strategy:

Small
businesses

Medium-sized
organisations

Enterprise companies

Foundation

Begin by defining your Ideal Client Profiles (ICPs) and segments into buyer personas
Ensure that key messaging and content align with these personas
Establish direct feedback loops with clients to gather insights

Foundation

Define more nuanced ICPs and segments to organise a broader audience
Conduct in-depth buyer persona development and leverage data for personalisation
Implement CRM, MAP, and ABM platforms as needed, for more extensive feedback loops and data analysis

Foundation

Develop highly nuanced ICPs and segments to cater to diverse markets
Use advanced data analysis for buyer persona development and content alignment
Leverage cutting-edge analytics and AI for feedback loops

Execution

Foster collaboration within your team and prioritise clients with high potential value
Focus on a few key channels that are most effective for your business
Invest in cost-effective personalisation tools and strategies

Execution

Promote cross-functional collaboration across departments and regions
Diversify your multi-channel approach, leveraging various technologies
Access advanced personalisation tools for more comprehensive strategies

Execution

Foster cross-functional collaboration on a global scale
Implement a wide array of advanced channels and technologies
Deploy the most advanced personalisation tools and strategies available

Revenue

Identify clear upsell and cross-sell opportunities among existing clients
Prioritise client retention as acquiring new clients is more resource-intensive
Encourage referrals through personal relationships and reward systems

Revenue

Develop structured upsell and cross-sell strategies
Invest in sophisticated client retention efforts
Formalise and incentivise referral programs

Revenue

Optimise revenue through comprehensive upsell and cross-sell strategies
Implement advanced account management for client retention
Run sophisticated, data-driven referral programs

Engagement

Craft hyper-personalised messages and communications
Implement ABM for your most valuable clients
Surprise and delight your clients with personalised touchpoints

Engagement

Implement personalised communication at scale
Expand your account based experience to target more key accounts
Incorporate surprise and delight into a structured engagement strategy to keep your brand top of mind

Engagement

Develop highly personalised communication and engagement strategies
Target key accounts with advanced ABM outreach
Execute creative and automated surprise and delight efforts

Growth

Gradually expand your reach in niches where you excel (based on data insights)
Leverage close relationships with satisfied clients for advocacy
Eventually build client advisor groups to inform your go-forward strategy

Growth

Expand into new markets or industries informed by data insights
Actively explore partnership opportunities for market share reach
Establish structured client advocacy programs, potentially including influencer marketing and thought leadership

Growth

Pursue global expansion and entry into new markets
Actively seek partnership opportunities
Establish comprehensive client advocacy programs, including influencer marketing and thought leadership

Small
businesses

Medium-sized
organisations

Enterprise companies

Foundation

Begin by defining your Ideal Client Profiles (ICPs) and segments into buyer personas
Ensure that key messaging and content align with these personas
Establish direct feedback loops  with clients to gather insights

Foundation

Define more nuanced ICPs and segments to organise a broader audience
Conduct in-depth buyer persona development and leverage data for personalisation
Implement CRM, MAP, and ABM platforms as needed, for more extensive feedback loops and data analysis

Foundation

Develop highly nuanced ICPs  and segments to cater to diverse markets
Use advanced data analysis  for buyer persona development  and content alignment
Leverage cutting-edge analytics and AI for feedback loops

Small
businesses

Medium-sized
organisations

Enterprise companies

Execution

Foster collaboration within your  team and prioritise clients with  high potential value
Focus on a few key channels that  are most effective for your business
Invest in cost-effective  personalisation tools and strategies

Execution

Promote cross-functional collaboration across departments and regions
Diversify your multi-channel approach, leveraging various technologies
Access advanced personalisation tools for more comprehensive strategies

Execution

Foster cross-functional collaboration on a global scale
Implement a wide array of advanced channels and technologies
Deploy the most advanced personalisation tools and strategies available

Small
businesses

Medium-sized
organisations

Enterprise companies

Revenue

Identify clear upsell and cross-sell opportunities among existing clients
Prioritise client retention as acquiring new clients is more resource-intensive
Encourage referrals through personal relationships and reward systems

Revenue

Develop structured upsell and cross-sell strategies
Invest in sophisticated client retention efforts
Formalise and incentivise referral programs

Revenue

Optimise revenue through comprehensive upsell and cross-sell strategies
Implement advanced account management for client retention
Run sophisticated, data-driven referral programs

Small
businesses

Medium-sized
organisations

Enterprise companies

Engagement

Craft hyper-personalised messages and communications
Implement ABM for your most valuable clients
Surprise and delight your clients with personalised touchpoints

Engagement

Implement personalised communication at scale
Expand your account based experience to target more key accounts
Incorporate surprise and delight into a structured engagement strategy to keep your brand top of mind

Engagement

Develop highly personalised communication and engagement strategies
Target key accounts with advanced ABM outreach
Execute creative and automated surprise and delight efforts

Small
businesses

Medium-sized
organisations

Enterprise companies

Growth

Gradually expand your reach in niches where you excel (based on data insights)
Leverage close relationships with satisfied clients for advocacy
Eventually build client advisor groups to inform your go-forward strategy

Growth

Expand into new markets or industries informed by data insights
Actively explore partnership opportunities for market share reach
Establish structured client advocacy programs, potentially including influencer marketing and thought leadership

Growth

Pursue global expansion and entry into new markets
Actively seek partnership opportunities
Establish comprehensive client advocacy programs, including influencer marketing and thought leadership

KEY TAKEAWAYS

Tailored interactions are a key trend in ABM, emphasising the need for personalised experiences to connect with B2B buyers effectively.
ABM budgets are increasing as more companies recognise the power of ABM to drive business growth and foster personalised client engagement in the B2B sector.
Prioritise personalisation to meet the growing demand for tailored experiences and engage the entire buying committee for deeper connections and influence.
Choose the right ABX program based on resources, scalability, and account specifics whilst leveraging automation and AI for data-driven personalisation.
Craft a seamless brand experience with personalisation, consistency, emotion, and trust.
Tailor ABX integration into your GTM strategy based on your organisation's size and resources.

Our INFUSE demand experts can craft personalised ABX demand programs tailored to your target accounts and buying committees, including strategies focused on ensuring outcomes and driving revenue.

CONTACT OUR TEAM AT [email protected] TO BUILD A HIGH-PERFORMANCE ABX STRATEGY AT SCALE