In the fiercely competitive world of B2B marketing, Account Based Marketing (ABM) has emerged as a game-changer.
ABM is not just another buzzword; it’s a strategic approach that laser-focuses your marketing efforts on key accounts, treating each one as a market of one.
The results speak for themselves:
- 97% higher ROI than traditional marketing methods
- 92% faster sales cycles
- Larger deal sizes and better sales-marketing alignment
But as we head into 2024, the ABM landscape is evolving rapidly.
To stay ahead of the curve, you need to understand the latest strategies, tools, and metrics that drive ABM key success.
In this guide, we’ll dive deep into the world of ABM, exploring everything from account selection and personalization to multi-channel engagement and performance optimization.
Whether you’re an ABM veteran or just getting started, this article will arm you with the insights and best practices you need to take your account-based marketing to the next level.
What is Account Based Marketing (ABM)?
- ABM is a B2B marketing strategy that focuses on key target accounts
- Personalized campaigns engage decision makers at each account
- Alignment between marketing and sales is crucial for ABM success
Account Based Marketing (ABM) is a strategic approach to B2B marketing that concentrates resources on a set of target accounts within a market. It uses personalized campaigns designed to engage each account, basing the marketing message on the specific attributes and needs of the account.
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Examples of Account Based Marketing
ABM campaigns are highly targeted and personalized. They often involve creating custom content, such as whitepapers or case studies, that speak directly to the needs of the target account. The goal is to address the specific pain points and challenges that account faces, rather than delivering a generic message.
Multi-channel engagement is another hallmark of ABM. Marketers use a combination of tactics, such as email, social media, targeted advertising, and even direct mail, to reach key decision-makers at the target account. The idea is to surround the account with relevant messages across multiple touchpoints.
- Personalized content and messaging for each target account
Personalization is at the heart of ABM. Marketers create content and messaging that speaks directly to the needs, challenges, and interests of each target account. This could include custom whitepapers, case studies, videos, or even personalized websites. For example, a case study highlighting how a similar company in the target account’s industry solved a specific challenge.
- Multi-channel engagement across email, social, ads, direct mail
ABM campaigns leverage multiple channels to engage target accounts. This multi-channel approach helps to reinforce the message and reach decision-makers wherever they are. Companies using ABM report 97% higher ROI than those that don’t.
- Email: Personalized emails are sent to key contacts at the target account, often with custom content.
- Social Media: Marketers use social media to engage with target accounts, share relevant content, and build relationships.
- Targeted Advertising: Digital ads are targeted specifically to the target account, often using IP-based targeting or account lists.
- Direct Mail: Physical mailers, such as custom packages or gifts, can make a tangible impression on the target account.
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Types of Account Based Marketing
There are three main types of ABM: One-to-One, One-to-Few, and One-to-Many. The approach varies based on the level of personalization and the number of accounts targeted.
- One-to-One ABM
One-to-one ABM, or Strategic ABM, is the most personalized and resource-intensive type. It focuses on a small number of high-value accounts, often the business’s largest and most strategic accounts.
In this approach, a dedicated team is assigned to each account. They create highly customized campaigns and content, often involving bespoke value propositions and solutions. The sales cycle is typically longer, but the deal sizes are larger. For instance, a software company created a custom product demo and on-site workshop for a major enterprise client.
- One-to-Few ABM
One-to-Few ABM, also called ABM Lite, involves targeting small clusters of accounts with similar needs or characteristics. The level of personalization is not as high as One-to-One ABM, but the campaigns are still tailored to the specific needs of each cluster.
This approach allows for more scalability than One-to-One ABM while still providing a high degree of personalization. It’s often used for second-tier accounts that are not quite as strategic as the top tier but still represent significant opportunities. For example, a marketing agency groups clients by industry and creates industry-specific content and events.
- One-to-Many ABM
One-to-many ABM, or Programmatic ABM, is the most scalable approach. It targets many accounts and relies more heavily on technology and automation to deliver personalization.
While the level of customization is lower than the other approaches, One-to-Many ABM still aims to deliver relevant, account-specific messages. Tactics often include personalized emails, targeted advertising, and account-specific web pages. According to a survey by ITSMA, 56% of B2B marketers use a one-to-few approach.
Regardless of the approach, the key to success with ABM is tight alignment between marketing and sales. Both teams need to work together closely to identify target accounts, develop account-specific strategies, and coordinate outreach and engagement.
By treating each account as a market of one, ABM allows B2B companies to deliver the personalized, relevant experiences that today’s buyers expect. In the next section, we’ll explore the benefits of this targeted approach.
Account-Based Marketing Strategies
- Identify and prioritize high-value accounts that fit your ideal customer profile.
- Develop personalized content and messaging that resonates with each target account.
- Orchestrate multi-channel engagement to build relationships and drive revenue.
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Identify and Prioritize Target Accounts
The foundation of a successful ABM strategy is selecting the right accounts to target. Start by defining your ideal customer profile (ICP) based on firmographic data like company size, industry, and revenue, as well as behavioral data such as website visits, content downloads, and event attendance.
“Prioritize accounts that have the highest revenue potential and the greatest likelihood to close,” advises ABM expert Megan Heuer. “Use a tiered approach to focus your resources on the accounts that matter most.”
Tier 1 accounts should get the most personalized attention, while Tier 2 and 3 accounts can be engaged with lighter-touch programs.
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Develop Personalized Content and Messaging
Cookie-cutter content won’t cut it in ABM. To capture the attention of your target accounts, you need to demonstrate a deep understanding of their unique challenges and goals.
“ABM is all about treating an account like a market of one,” said Nate Skinner, VP of Product Marketing at Salesforce. “Research the company, the key personas you are targeting, and their specific pain points. Then develop content and messaging that speaks directly to their needs.”
- Content Types for ABM
Some effective ABM content formats include:
- Personalized web pages
- Industry-specific white papers and ebooks
- Case studies featuring similar companies
- Custom demo videos and product tours
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Orchestrate Multi-Channel Engagement
ABM is not a single channel strategy. To effectively engage your target accounts, you need to surround them with coordinated touchpoints across multiple channels.
Jon Miller, CEO of Engagio, recommends “orchestrating interactions across email, phone, social media, digital advertising, direct mail, and in-person events. Each touchpoint should reinforce your key message and provide value to the account.”
Some tactics to consider:
- LinkedIn advertising targeted at key decision makers
- Personalized email sequences from sales and executives
- Direct mail gifts and invitations to exclusive events
- 1:1 meetings at conferences and trade shows
The goal is to build familiarity and trust with the account over time, until they are ready to engage in a sales conversation.
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Measure and Optimize ABM Programs
As with any marketing strategy, measurement is critical for ABM success. But instead of focusing on lead volume and vanity metrics, ABM requires tracking engagement and revenue at the account level.
“Key metrics for ABM include account coverage, engagement, reach within each account, and influence and sourced pipeline,” says Brandon Redlinger of Demandbase. “Use these insights to optimize your account list, messaging, content, and channel mix over time.”
Tools like Engagio, Terminus, and 6sense can help aggregate account data across systems and provide actionable reporting.
By focusing on the right accounts, delivering personalized value, engaging across channels, and measuring what matters, B2B marketers can drive higher ROI and stronger customer relationships through account based marketing.
Benefits of Account Based Marketing
- ABM delivers higher ROI, shorter sales cycles, and better alignment between sales and marketing teams
- Personalized campaigns lead to stronger relationships with key accounts and increased customer loyalty
- Focusing resources on high-value accounts results in more efficient use of marketing budgets
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Higher ROI and Deal Size
Account Based Marketing allows companies to focus their efforts on high-value accounts that have the potential for larger deals. By targeting specific decision-makers within these accounts with personalized content and campaigns, ABM can lead to a significant increase in ROI compared to traditional marketing methods.
According to a study by Forrester, ABM delivers 97% higher ROI than other marketing strategies. This is because ABM campaigns are highly targeted and relevant to the specific needs and pain points of each account. By engaging with multiple stakeholders within an account simultaneously, ABM can help move deals along faster and increase the likelihood of closing larger contracts.
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Shorter Sales Cycles
One of the key benefits of Account Based Marketing is the ability to shorten sales cycles by engaging with multiple stakeholders within an account simultaneously. Traditional marketing methods often focus on engaging with a single point of contact, which can lead to longer sales cycles as that individual needs to communicate with other decision-makers before making a purchase.
With ABM, marketers can create targeted content and campaigns that address the specific needs and concerns of each stakeholder. This helps to build consensus within the account and move deals along faster. In fact, 92% of companies that have implemented ABM report a faster sales process compared to traditional marketing methods.
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Better Sales and Marketing Alignment
Account Based Marketing requires close collaboration between sales and marketing teams. By focusing on the same set of target accounts, both teams can work together to create a seamless customer experience from initial engagement to closed deal.
With ABM, marketing teams are responsible for creating personalized content and campaigns that support the sales team’s efforts. This includes creating targeted ads, emails, and landing pages that speak directly to the needs of each account. Sales teams, in turn, can provide valuable insights into the specific challenges and priorities of each account, which can inform the marketing team’s content creation.
This alignment between sales and marketing leads to a more efficient use of resources and a higher likelihood of success. According to a study by Marketo, companies that align their sales and marketing teams achieve 67% higher conversion rates and generate 209% more revenue from marketing efforts.
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Increased Customer Loyalty
Account Based Marketing is not just about acquiring new customers; it’s also about nurturing and retaining existing ones. By providing personalized attention and support to key accounts, companies can build stronger relationships and increase customer loyalty over time.
ABM campaigns can be used to engage with existing customers in a variety of ways, such as:
- Providing exclusive content and resources that address their specific needs and challenges
- Inviting them to VIP events and experiences
- Offering personalized support and service
- Celebrating their successes and milestones
By making customers feel valued and appreciated, companies can increase retention rates and generate more revenue from existing accounts. According to a study by Bain & Company, increasing customer retention rates by just 5% can lead to a 25-95% increase in profits.
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More Efficient Use of Marketing Budgets
Finally, Account Based Marketing allows companies to use their marketing budgets more efficiently by focusing resources on the accounts that are most likely to generate revenue. Rather than casting a wide net with broad-based campaigns, ABM enables marketers to create highly targeted campaigns that are tailored to the specific needs of each account.
This targeted approach not only leads to higher ROI, but it also helps to reduce waste and inefficiency in marketing spend. By focusing on the accounts that matter most, companies can allocate their resources more effectively and achieve better results with less overall investment.
According to a study by ITSMA, companies that implement ABM see a 171% increase in average annual contract value (ACV) compared to those that do not. This suggests that ABM not only helps to generate more revenue, but it also helps to generate more valuable contracts over time.
- Case Study: Snowflake Computing
Snowflake Computing, a cloud data warehousing company, implemented an ABM strategy to target their top 50 accounts. By creating personalized content and engagement plans for each account, they were able to achieve a 50% increase in deal size and a 285% increase in pipeline value within the first year of their ABM program.
Account-Based Marketing Tools
As we dive deeper into Account Based Marketing (ABM), it’s crucial to explore the tools that enable these strategies. This section’ll introduce the key categories of ABM tools and highlight some of the top players in each category.
To properly evaluate and compare these tools, we’ll be using the following criteria:
- Unique Selling Point (USP)
- User Experience and Interface
- Integrations and Compatibility
- AI Technology and Customization
- Performance and Reliability
- Accuracy and Error Rate
- Cost Comparison
- Learning Curves
- Customer Support
Throughout the rest of this article, we’ll break down each tool based on these criteria, assigning a winner in each category. By the end, you’ll clearly understand which tool comes out on top overall.
Let’s start by looking at the three main categories of ABM tools:
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Account Selection and Insights
In this category, we have:
- 6sense for account identification and predictive intelligence
- ZoomInfo for building target account lists and buyer personas
These tools help you identify and prioritize the accounts most likely to convert based on data-driven insights.
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Engagement Orchestration
Here, we’ll compare:
- Terminus for multi-channel ABM campaigns
- Demandbase for account-based advertising
These platforms enable you to create and manage personalized, cross-channel campaigns to engage your target accounts effectively.
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Sales Enablement
Finally, we’ll evaluate:
- Highspot for sales content management and analytics
- SalesLoft for sales engagement and automation
These tools empower your sales team with the content, insights, and automation they need to close deals faster.
By the end of this in-depth comparison, you’ll have the knowledge to select the best ABM tools for your organization’s unique needs and goals. Let’s get started!
Account Based Marketing Metrics
- Measure the success of ABM campaigns with coverage, engagement, and impact metrics.
- Track the percentage of target accounts reached, stakeholders engaged, and time spent with content.
- Evaluate ABM ROI through opportunities generated, pipeline created, and revenue won.
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Coverage
Tracking coverage helps ABM teams understand how effectively they are reaching their target accounts. Two key metrics to monitor are:
- Percentage of target accounts reached by ABM campaigns
- Number of stakeholders engaged at each account
According to a 2023 TOPO study, top-performing ABM programs reached an average of 85% of their target accounts, compared to just 61% for less mature programs. Best-in-class teams also engaged 5.8 stakeholders per account on average.
- Tactics to Improve Coverage
Some tactics to boost account coverage include:
- Partnering with sales to identify and prioritize key stakeholders
- Leveraging intent data to detect in-market accounts
- Utilizing account-based advertising to reach buyers across channels
“The foundation of a strong ABM program is tight alignment between marketing and sales on the accounts that matter most,” says Megan Heuer, VP of Research at TOPO. “From there, it’s about orchestrating personalized, multi-touch campaigns to blanket those accounts and engage the buying committee.”
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Engagement
Engagement metrics provide a view into how actively target accounts are interacting with your ABM efforts. Important engagement indicators are:
- Time spent with content by each account
- Frequency and recency of interactions
In LinkedIn’s 2022 State of ABM Report, 87% of marketers cited engagement as their top indicator of ABM success. The report also found that best-in-class programs generated 3x more engagement within target accounts compared to peers.
Metric Definition Benchmark Time spent per account Total content engagement time for each account 2.5 hours per quarter Interactions per account Count of content interactions (downloads, video views, etc.) 18 per quarter Some ways to drive higher engagement:
- Developing account-specific content journeys
- Triggering sales outreach based on engagement thresholds
- Measuring engagement by buying stage and persona
“Engagement data gives you a real-time pulse on account interest and intent,” says Erik Matlick, CEO of Bombora. “By monitoring content consumption patterns and layering on intent signals, you can identify the accounts and contacts most likely to buy, then focus your efforts there.”
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Impact
Ultimately, ABM programs must show bottom-line impact through pipeline and revenue generation. Key performance indicators include:
- Number of target accounts converting to opportunities and customers
- Pipeline and revenue generated from ABM efforts
A TOPO benchmark study found that ABM-focused companies generated 73% more pipeline from their target accounts compared to non-ABM-deploying peers. Top performers also saw 3x higher account win rates.
Provable revenue impact is the holy grail of any ABM program. “At the end of the day, sales cares about one thing – generating more pipelines and closing more deals,” says Jon Miller, CMO of Demandbase. “If you can show that ABM is moving the needle on those metrics, you’ll have no trouble getting buy-in and investment.”
To tie ABM to revenue outcomes:
- Set up account-specific opportunity and pipeline tracking
- Measure marketing-influenced pipeline and closed/won business
- Report on ABM-sourced vs ABM-influenced revenue
( Also Read: Account Based Marketing vs. Account Based Selling )
Account-Based Marketing Best Practices
- Maximize ABM success with executive buy-in, dedicated teams, and ongoing optimization
- Experiment with various ABM approaches to find the most effective tactics for your organization
- Regularly evaluate and evolve your ABM strategy based on performance metrics and business growth
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Get Executive Buy-In
Securing executive support is crucial for the success of any Account Based Marketing initiative. Start by educating leadership on the business case for ABM, highlighting its potential to drive revenue growth, improve customer retention, and enhance sales and marketing alignment. Present compelling data and case studies from similar organizations that have achieved success with ABM. For example, a study by SiriusDecisions found that ABM programs can result in a 20% increase in conversion rates and a 15% increase in deal size.
Next, set clear goals and objectives for your ABM program. These should be aligned with overall business objectives and be specific, measurable, achievable, relevant, and time-bound (SMART). By setting well-defined goals, you can demonstrate the value of ABM to executives and secure a dedicated budget for your efforts.
- Building an ABM Business Case
When building a business case for ABM, consider including the following elements:
- Market opportunity: Highlight the potential revenue growth and market share gains that can be achieved by targeting high-value accounts. According to a report by Forrester, 71% of B2B marketers use ABM to target high-value accounts.
- Competitor analysis: Demonstrate how ABM can help differentiate your organization from competitors and win key accounts.
- ROI projections: Estimate the expected return on investment based on historical data, industry benchmarks, and your organization’s unique factors. Ensure these projections are realistic and based on accurate data by consulting with finance and sales leaders to validate assumptions.
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Build a Dedicated ABM Team
To execute an effective ABM strategy, it’s essential to have a dedicated team with clearly defined roles and responsibilities. This team should include representatives from sales, marketing, and customer success who will collaborate closely to identify, engage, and nurture target accounts.
Assign specific ABM roles within each department:
- Sales: Account executives, sales development representatives, and customer success managers
- Marketing: Content creators, demand generation specialists, and field marketers
- Customer Success: Onboarding specialists, account managers, and renewal managers
Foster ongoing collaboration between these teams through regular meetings, shared dashboards, and communication channels. Encourage knowledge sharing and celebrate successes together to maintain momentum and enthusiasm for the ABM program.
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Experiment with Different ABM Approaches
There are several approaches to Account Based Marketing, each with its own advantages and challenges. Experiment with different tactics to find the most effective mix for your organization:
- One-to-One ABM: Highly personalized, high-touch engagements with a small number of high-value accounts. This approach requires significant resources but can yield substantial returns.
- One-to-Few ABM: Targeted campaigns aimed at clusters of accounts with similar characteristics or needs. This approach balances personalization and scalability.
- One-to-Many ABM: Programmatic campaigns that reach a larger number of accounts with tailored messaging and content. This approach is more scalable but less personalized.
Test these different approaches and measure their performance against your ABM goals. Double down on the tactics that generate the best results and phase out underperforming strategies. Analyze case studies and best practices from organizations in your industry to identify proven ABM tactics, such as those highlighted in a report by ITSMA.
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Evaluate and Evolve Your ABM Strategy
Account-based Marketing is an iterative process that requires continuous evaluation and optimization. To assess the effectiveness of your efforts, regularly report on key ABM metrics, such as engagement rates, pipeline velocity, and closed-won deals. Use these insights to refine your targeting criteria, messaging, and content assets.
As your business grows and evolves, so should your ABM strategy. Expand your target account lists to include new high-value prospects and adjust your processes to accommodate changes in the market or your organization’s priorities.
- ABM Optimization Tactics
To continuously improve your ABM performance, consider implementing the following tactics:
- A/B testing: Experiment with different subject lines, calls-to-action, and content formats to identify the most effective variations.
- Predictive analytics: Leverage machine learning algorithms to identify high-propensity accounts and prioritize outreach efforts.
- Intent data: Monitor online behavior and content consumption patterns to identify accounts that are actively researching topics related to your solutions.
Evaluate your current MarTech stack and identify any gaps in ABM capabilities. Research ABM platforms and tools that can help streamline and automate your efforts, such as those listed in a report by Gartner.
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Embrace a Customer-Centric Mindset
A deep understanding of your target accounts’ needs, challenges, and objectives is at the core of any successful ABM strategy. Embrace a customer-centric mindset by investing in buyer persona research, conducting customer interviews, and analyzing account-level data.
Use these insights to create highly relevant and valuable content, personalized experiences, and tailored solutions that address each account’s unique requirements. You can build trust, foster long-term relationships, and drive revenue growth by demonstrating a genuine commitment to your customers’ success.
Conduct a thorough review of your existing customer data and identify any gaps or inconsistencies. Consider implementing a customer data platform (CDP) to unify and enrich your account-level data, as recommended by a Forrester report.
ABM in 2024: Your Path to B2B Success
Account based marketing is a powerful strategy for B2B companies looking to drive higher ROI and faster sales cycles. By focusing on personalized engagement with high-value accounts, ABM delivers results that traditional marketing can’t match.
To succeed with ABM in 2024, align your sales and marketing teams around a shared list of target accounts. Develop customized content and messaging that speaks directly to each account’s unique needs and pain points. Then, orchestrate a coordinated campaign across multiple channels to surround decision makers with your brand.
As you execute your ABM program, closely monitor account-level engagement and pipeline metrics. Use these insights to continually refine your target account list, content assets, and campaign tactics. With the right tools and best practices, you can scale your ABM efforts and drive significant revenue growth for your business.
Ready to take your B2B marketing to the next level? Implement these ABM strategies and watch your results soar. Which high-value accounts will you target first?
