Expert View: Navigating the Challenges of Account-Based Marketing (ABM) for SMEs

I’ve worked on ABM programmes in mid-large business for longer than I can remember! But when I first explored the idea of implementing Account-Based Marketing (ABM) in a smaller business, I was met with more than a few raised eyebrows. The concept of heavily investing time, resources, and effort into targeting a select few high-value accounts seemed almost counterintuitive to those used to broader marketing approaches. It’s no secret that ABM comes with its own set of challenges, particularly in where every penny and minute counts. But having been through the process, I’ve seen first-hand that when ABM is done right, it not only delivers impressive results but also brings teams together around the shared goal of meeting customer needs.

The Challenges of Implementing ABM

One of the first hurdles I encountered when advocating for ABM was pushback from sales and business leaders. I get it – ABM often requires a significant upfront investment, not just financially, but in terms of time and effort. In smaller businesses, where resources are already stretched thin, this can seem like a huge ask. Sales teams, in particular, might be sceptical, as ABM shifts the focus from quantity (more leads) to quality (better leads), which can feel risky.

From my experience, one of the keys to overcoming this resistance is clear communication about the long-term benefits of ABM. It’s essential to explain that while it might not produce immediate, high-volume results, it’s designed to build deeper, more profitable relationships with key accounts. This approach aligns marketing and sales teams around the same goals, ultimately leading to more successful outcomes.

I was recently working with a small professional services business and this was perceived as a huge shift for them. However, I compared it to how, in daily life, sales teams generally only focus on a small number of prospects – we’re replicating that and trying to help identify the right targets. Also, we were derisking to whole thing by not changing everything overnight – it was gradual and piloted to ensure we got it right.

Taking the Time to Get ABM Right

Another significant challenge is the time it takes to get ABM right. Unlike broader marketing strategies, ABM requires detailed research, personalised content creation, and ongoing collaboration between teams. It’s not something you can rush, and that can be frustrating in a fast-paced business environment.

However, I’ve found that investing this time upfront pays off in the long run. By thoroughly understanding the needs and pain points of your target accounts, you can create highly tailored campaigns that resonate more deeply with them. This level of personalisation often leads to stronger relationships, higher conversion rates, and, ultimately, increased customer lifetime value (CLV). There’s a lot of research to support this which I won’t go in to here – but it’s all very compelling and, if you think about our own experiences, we all want suppliers who actually understand what we need.

It’s also worth noting that ABM fosters a culture of collaboration within the business. In my experience, when marketing and sales teams work together to develop and execute ABM strategies, it strengthens their relationship and ensures that everyone is aligned around the needs of the customer. This alignment is crucial for delivering a seamless experience that meets—and often exceeds—customer expectations.

I recently helped turn a customer account from 1 single contact spending around £10k a year into 5 new contacts spending a total of £45k a year – still one sales person, and this growth is still continuing.

Measuring Success: KPIs to Get Right

One of the biggest challenges I’ve encountered with ABM is measuring success. Traditional marketing metrics like lead volume don’t apply here, so it’s important to identify the right KPIs that reflect the effectiveness of your ABM efforts. Again, there’s a lot of information and approached out there – but for me I try and keep to a few key metrics, which everything else feeds in to.

Here are the top KPIs I focus on:

1. Customer Lifetime Value (CLV): CLV is a critical metric in ABM because it reflects the long-term revenue potential of your targeted accounts and it aligns everyone around one goal. By focusing on increasing CLV, you can ensure that your ABM efforts are contributing to sustained business growth.
2. Account Engagement: This KPI tracks how engaged your target accounts are with your content and communications. High engagement levels are often a strong indicator that your ABM strategy is resonating with the right people.
3. Pipeline Velocity: This measures how quickly accounts move through your sales pipeline. A faster pipeline velocity indicates that your ABM efforts are effectively addressing the needs of your target accounts, leading to quicker decision-making.
4. Conversion Rate: While lead volume might decrease in an ABM strategy, the conversion rate should increase. Tracking the percentage of targeted accounts that convert into customers is a key measure of ABM success.
5. ROI on ABM Campaigns: Given the investment required for ABM, it’s crucial to track the return on investment (ROI) of your campaigns. This includes not just financial ROI but also the overall impact on account relationships and brand perception.

It’s important that sales, marketing and commercial teams discuss and analyse these KPIs regularly. I’ve found that you can quickly identify opportunities or issues and address them as a group. It also provides a forum for discussion across the teams to ensure everyone’s aligned and talking!

I’ve distilled my experience into some quick wins on challenges and benefits below.

Top 5 Benefits of ABM and How to Make Them Happen

Conclusion 

Implementing ABM in a small to medium-sized business is not without its challenges. There will likely be resistance from sales teams and leadership, especially when the upfront investment seems high. But from my own experience, I can confidently say that taking the time to get ABM right is worth it. When done well, ABM aligns your teams around the needs of your customers, fosters deeper, more profitable relationships, and ultimately drives long-term business success. The key is to stay patient, remain committed, and focus on the benefits that ABM can bring to your organisation – be the educator and help everyone through it. With the right approach and a clear understanding of your KPIs, ABM can transform your business.