Account-based marketing (ABM) platforms were hailed as game-changers for B2B marketing, promising to elevate targeting strategies by focusing on high-value accounts. These platforms shifted attention from traditional leads to account signals, offering data-driven insights and streamlined communication with sales teams. But as CMOs reflect on their experiences with these platforms, many report frustration. Despite their potential, ABM platforms present high costs, complex integration demands, and cross-department challenges that leave some marketers wondering if they’re worth the investment.
The Core Functions of an ABM Platform
ABM platforms are designed to perform three main functions: predictive analytics, programmatic bidding, and account-based measurement. Each function holds immense potential, but hidden obstacles are undermining their effectiveness.
1. Predictive Analytics
Predictive analytics is the backbone of ABM, utilising intent data, CRM information, and website behaviours to identify accounts most likely to convert. By analysing thousands of data points, ABM platforms claim to help marketers prioritise accounts showing buying signals. The integration of multiple data sources theoretically provides sales and marketing teams with a refined list of target accounts, offering clarity on where to allocate resources.
However, while intent data can be incredibly useful, integrating it seamlessly with CRM and website data requires rigorous coordination. The setup process often involves extensive time and resources, making it difficult for many companies to see the quick wins they were promised.
2. Account-Based Programmatic Bidding
ABM platforms enable marketers to deliver ads directly to key decision-makers within target accounts, ensuring that budgets are spent on high-value prospects. Unlike broad-based programmatic advertising, ABM platforms offer laser-focused targeting, allowing marketers to filter by job title, location, and company name.
This level of precision should maximise the return on marketing spend. Yet, the effectiveness of these ads hinges on the accuracy of the underlying data. Additionally, achieving this precise targeting requires collaboration between marketing and sales to ensure alignment on which accounts to prioritise. If either team is not fully on board, the results can be disappointing.
3. Account-Based Measurement
ABM platforms shift the focus from traditional metrics, like clicks and impressions, to engagement metrics within targeted accounts. Marketers can see how decision-makers interact with their content, allowing a closer look at which accounts are moving through the sales funnel. This approach provides a clearer link between marketing efforts and sales outcomes, offering transparency in B2B marketing attribution.
Yet, accurate measurement can be challenging, particularly when these platforms require marketers to rely on cross-departmental alignment. Without the right data integration and stakeholder support, measurement tools can fail to capture the full impact of marketing activities, frustrating marketing teams striving to justify their strategies.
The Hidden Costs of ABM Platforms
The promise of ABM comes with a hefty price tag—both financially and organisationally. Many platforms require multi-year contracts with significant fees, making it difficult for companies to exit if results fall short. But financial costs are only part of the story; ABM platforms also demand extensive implementation and cross-departmental collaboration, which can create roadblocks.
Cross-Departmental Confusion
ABM platforms require buy-in from sales, marketing, and IT, introducing organisational challenges. Sales teams may resist adopting a new system, preferring their established methods for targeting accounts, while IT teams may have concerns over data integration and security. Misalignment between departments often leads to conflicting priorities, undermining the platform’s potential impact.
Implementation Hurdles
Implementing an ABM platform is akin to deploying a CRM system. It requires change management, training, and ongoing maintenance. Many companies underestimate the time and effort required to get these platforms up and running, and without a dedicated project manager, platforms can become resource-draining exercises that fail to deliver value.
High Costs and Long Contracts
The financial burden of ABM platforms is significant. Many providers lock clients into lengthy contracts, sometimes costing six figures annually. The platforms may also charge extra fees for advanced features and data storage, pushing costs even higher. For smaller businesses, the ROI can be difficult to justify, especially considering the continuous management required.
Exploring Alternatives: Agile Solutions Without the Platform
For companies unable to meet the high costs and complexity of ABM platforms, alternatives exist that can deliver similar results without the financial and operational challenges. Disintermediating the functions of ABM platforms allows companies to achieve targeted marketing without the platform’s demands.
Agency Partnerships
Working with an agency skilled in ABM can provide a more flexible approach. Agencies offer the necessary tools, expertise, and data partnerships without requiring in-house teams to manage a complex platform. This approach can be a cost-effective way to access ABM capabilities and consultative services without the need for a long-term platform investment.
Point Solutions
Instead of relying on an all-in-one ABM platform, companies can select point solutions to cover each core ABM function. For instance, predictive analytics can be managed through intent data providers, programmatic bidding can be achieved through ad platforms, and account measurement can be supported by emerging analytics tools. This method allows companies to build a tailored approach that aligns with their specific needs, making it easier to adapt to changing requirements.
Managed Service Providers
Managed service providers offer a hybrid option, combining the technological capabilities of an ABM platform with hands-on management. These providers can take over campaign management, enabling internal teams to focus on strategy without being bogged down by platform administration.
Unlocking the Benefits of ABM Without the Platform
While ABM platforms can undoubtedly enhance a company’s ability to reach key accounts, they are not always the right fit for every organisation. For B2B CMOs feeling constrained by the cost and complexity of these systems, agency partnerships, point solutions, and managed service providers offer viable alternatives. By exploring these options, businesses can achieve the strategic benefits of account-based marketing without the high costs and headaches of a dedicated platform.
Ultimately, the right choice depends on each company’s unique needs, resources, and growth goals. ABM platforms can still be powerful tools, but with flexible alternatives available, companies now have more ways than ever to tailor their account-based marketing approach for maximum impact.
Source: https://martech.org/why-b2b-cmos-are-frustrated-with-abm-platforms/
