Why B2B CMOs are frustrated with ABM platforms

Account-based marketing (ABM) platforms came with the promise of revolutionizing B2B marketing. They reminded us that it’s all about the account and transformed that insight from a concept into a craft. They recognized that the value of a lead extends beyond MQLs and SQLs, reframing it as a powerful account signal for prioritization and scoring. 

ABM platforms enabled marketers to peer into the crystal ball of intent data, identifying which accounts were in-market for solutions. They unlocked digital marketing superpowers at the company level, helping marketers communicate more effectively with executive leaders and colleagues in sales.

We live in the age of the great ABM platforms, so why is frustration with them so widespread? Talk to CMOs who have used these platforms for at least nine months, and you’ll often see steam start to blow from their ears like a train whistle. What went wrong and can it be fixed?

To understand, we’ll tackle the three core jobs an ABM platform is designed to do and the hidden costs and complexities that make these platforms challenging for marketing teams to integrate. We’ll also look at alternatives that allow brands to disintermediate the roles of ABM platforms and achieve similar or better outcomes.

The core functions of an ABM platform

1. Predictive analytics

This is the first and arguably most critical function of an ABM platform. The promise here is simple: use a combination of intent data (such as keyword searches, third-party signals and industry-specific trends), CRM data and website visitation behavior to prioritize accounts most likely to convert. This process involves using machine learning models to analyze thousands of data points, which help marketers predict which accounts are showing buying signals and are ready to be targeted. Sounds great, right? That’s because it is.

Intent data alone is invaluable and offers an enormous amount of directional benefit, but marrying it with CRM and website behavior, ABM platforms can offer a more holistic and accurate account prioritization process. The result is supposed to be a finely tuned list of accounts, giving sales and marketing teams clarity on where to focus their time and resources. 

2. Account-based programmatic bidding

This function allows marketers to hyper-target digital ads to the high-value accounts they have identified. Unlike traditional programmatic ad buying, which casts a wide net across various audiences, account-based programmatic bidding is laser-focused, aiming ads only at the decision-makers or influencers within target accounts.

This is achieved using granular filters such as job titles, geographic locations and company names to ensure that only the relevant people (think buying committee) from the target accounts are exposed to your campaigns. This level of precision maximizes the efficiency of marketing spend, ensuring that every dollar goes toward engaging the right people at the right companies.

3. Account-based measurement

Finally, ABM platforms offer account-based measurement capabilities, which are meant to track and report on the performance of account-based campaigns. Rather than focusing on traditional metrics like clicks or impressions, they zero in on how specific accounts engage with your content and move through the sales funnel.

These platforms offer a comprehensive view of how marketing activities influence key decision-makers within a target account, whether engaging with ads, visiting your website or downloading content. This makes it easier to tie marketing activities to sales outcomes, providing transparency into the often murky world of B2B marketing attribution.

Dig deeper: How to measure what matters in account-based marketing

The hidden costs of ABM platforms

ABM platforms do more than just offer exciting features; they let companies use ABM as a complete system, not just a one-off tactic. This distinction is crucial. In B2B, every marketing tactic — whether it’s demand generation or brand marketing — benefits from an account-based approach.

However, hidden costs make these platforms much harder to use effectively than they first appear. Here are key issues that reduce an ABM platform’s value — which help explain why such powerful platforms have such significant churn.

Cross-department ownership and confusion

A major issue with ABM platforms is that using them effectively requires buy-in and cooperation from multiple departments, like sales and IT. This introduces the need for organizational change management. Sales teams may resist new self-serve systems due to different priorities, while IT teams often have their own approaches to data integration, security and governance.

These teams need to align from the start and understand how platforms work. The marketing department may prioritize accounts based on the predictive analytics provided by the ABM platform. However, if sales isn’t looped in, they may target different accounts based on their personal preferences or historical success. Similarly, IT may have reservations about how data is being collected and used, leading to implementation bottlenecks. All these moving parts can quickly lead to frustration and misaligned efforts across departments. 

The burden of implementation

ABM platforms are often self-service. Marketers are expected to set up, integrate and manage the system themselves. This process is far from simple. Implementing an ABM platform is akin to implementing a CRM system — it demands rigorous change management, staff training and ongoing maintenance.

Given the complexity of these platforms, many companies underestimate the time and resources required to get them up and running effectively. Without dedicated project management and stakeholder involvement, the platform becomes a drain on resources before it delivers transformational results. Moreover, because ABM platforms are often used across multiple departments, the burden of implementation is shared unevenly, leading to situations where no single department takes full ownership.

The not-so-hidden high costs and long contracts

ABM platforms are expensive. Many providers require long minimum contracts, often locking companies into a year or more of service with six-figure annual fees. These contracts also often include hidden fees for advanced features, data storage or integrations with other tools, which can push the cost even higher.

For many organizations, especially small and medium-sized businesses, the ROI of an ABM platform makes justifying the upfront cost difficult. Because these platforms demand continuous management and optimization, the ongoing costs of staff time and resources can be significant.

That said, we live in the age of the great ABM platforms for a reason. They unlock an account-based approach to marketing, which is the right GTM for any business selling to an account.

Dig deeper: Maximizing your B2B spend: Is account-based marketing worth it?

Disintermediating ABM platforms: Another alternative

Many organizations use these platforms successfully and have made the necessary investments to adopt an account-based approach. However, for those who don’t have the means to invest in annual fees and organizational change management, there are still alternatives to building an account-based approach to drive faster and more efficient growth.

Agency partners

Consider working with an agile and modern agency partner specializing in ABM. Agencies bring expertise, tools and data partnerships to the table without needing internal teams to manage a complex platform. Whether it’s helping to integrate and manage an ABM platform or replicating the three jobs an ABM platform does, they can offer consultative services to help your business deliver a more effective go-to-market motion. 

Point solutions

Instead of using an all-in-one ABM platform, companies can create point solutions to handle each of the three core functions. For example, predictive analytics can be handled through specialized intent data providers, programmatic bidding through innovative new ad platforms and measurement through emerging account-based measurement tools. This approach allows companies to build a more agile solution that fits their needs.

Managed service partners

Managed service partners provide a hybrid option, offering the technological capabilities of an ABM platform alongside hands-on management and strategy. They can take over the day-to-day management of campaigns, freeing up internal teams to focus on higher-level strategy and execution.

Dig deeper: The small B2B marketing team’s guide to ABM

Agile alternatives to unlock ABM potential

It’s never been a more exciting time to be a B2B marketer. B2B CMOs are making up for lost time as they pioneer innovative uses of data and martech to deliver faster and more measurable growth. We have the ABM platforms to thank for delivering so much innovation in the last five years. 

That said, what’s right for one company is not right for all companies. There are innovative ways to deliver targeted, efficient and measurable marketing account-based marketing without using an ABM platform. By using alternatives like agency partners, point solutions or managed service providers, organizations can disintermediate the “jobs to be done” of an ABM platform and still achieve account-based marketing success — without the high costs and headaches.

The post Why B2B CMOs are frustrated with ABM platforms appeared first on MarTech.

Source link