Glossary of Marketing Terms
View GlossariesAccount-Based Marketing
Account-based marketing (ABM) is a strategic approach to B2B marketing that focuses on targeting specific accounts or companies rather than individual customers. In ABM, marketers identify a select group of high-value accounts and develop personalized marketing campaigns and content tailored to the specific needs and challenges of those accounts.
The goal of account-based marketing is to build long-term relationships with high-value customers by providing them with relevant and personalized content, experiences, and solutions that address their unique pain points and challenges. ABM typically involves close collaboration between sales and marketing teams to ensure that the messaging and content align with the needs and goals of the target accounts.
ABM can be a highly effective approach for B2B marketers looking to engage with key decision-makers and influencers within specific accounts, build stronger relationships, and ultimately drive revenue growth. However, it requires a significant investment in research, content development, and personalized outreach, which can make it more resource-intensive than traditional marketing approaches.
What is account-based marketing (ABM)?
Account-based marketing (ABM) is a strategic approach to B2B marketing in which a company focuses on specific, high-value accounts and creates personalized campaigns tailored to the needs and characteristics of those accounts.
What are the benefits of account-based marketing?
Account-based marketing (ABM) can offer several benefits to businesses looking to increase revenue and build stronger relationships with high-value accounts. Here are some of the key benefits of ABM:
- Increased Revenue: By focusing on high-value accounts and using personalized messaging and a tailored approach, ABM can help businesses generate more revenue and increase customer lifetime value.
- Better Customer Relationships: ABM is focused on building strong, long-term relationships with high-value accounts. By tailoring your messaging and approach to the specific needs of each account, you can create a more personalized and engaging experience that strengthens your customer relationships.
- More Efficient Marketing Spend: Because ABM is focused on a smaller set of high-value accounts, it can be a more efficient use of marketing resources compared to traditional marketing approaches. By targeting only the accounts that are most likely to generate revenue, you can reduce waste and increase the ROI of your marketing efforts.
- Improved Sales Alignment: ABM requires close collaboration between sales and marketing teams, which can help to improve alignment and create a more cohesive revenue-generating machine.
- Faster Sales Cycles: By building strong relationships with high-value accounts, ABM can help to shorten sales cycles and drive more efficient revenue growth.
- Increased Customer Retention: By focusing on building long-term relationships with high-value accounts, ABM can help businesses increase customer retention and reduce churn.
How does account-based marketing differ from traditional marketing?
Traditional marketing typically casts a wide net in the hopes of attracting as many leads as possible, while ABM is much more targeted and focused. Rather than creating generic campaigns for a broad audience, ABM creates personalized campaigns for specific accounts.
What are the key components of an account-based marketing strategy?
The key components of an account-based marketing (ABM) strategy include:
- Target Account Selection: The first step in developing an ABM strategy is to identify the high-value accounts that you want to target. This involves analyzing data and conducting research to understand which accounts are most likely to convert into customers and generate revenue for your business.
- Personalized Messaging: Once you've identified your target accounts, the next step is to create personalized messaging that speaks directly to the needs and pain points of those accounts. This can involve creating customized content, email campaigns, social media messaging, and other marketing collateral that is tailored to the specific needs of each account.
- Multi-Channel Approach: To reach your target accounts effectively, you need to use a variety of channels to engage with them. This might include email, social media, direct mail, events, and more. The key is to ensure that your messaging is consistent and relevant across all touchpoints so that you can build a strong relationship with your target accounts.
- Sales and Marketing Alignment: In order for an ABM strategy to be successful, sales and marketing teams need to work closely together. This involves aligning on messaging and goals, sharing data and insights, and collaborating on account-specific campaigns and initiatives.
- Measurement and Optimization: As with any marketing strategy, it's important to measure the success of your ABM efforts and optimize your approach over time. This might involve tracking metrics such as engagement rates, conversion rates, and pipeline contribution, and using this data to refine your messaging and tactics as needed.
What are examples of companies doing account-based marketing?
Here are a few examples of account-based marketing (ABM):
- Terminus: Terminus is a leading ABM platform that uses personalized advertising, email, and web experiences to engage with target accounts. They have a case study that details how they helped construction management software company Procore Technologies increase their marketing ROI by 38% through account-based marketing.
- LinkedIn: LinkedIn is a social media platform that has built an entire ABM solution around its existing database of over 700 million professionals. LinkedIn's ABM offering allows marketers to target specific companies with personalized content and advertising based on job titles, industry, and other factors.
- Demandbase: Demandbase is a B2B marketing platform that offers account-based advertising, website personalization, and lead scoring. They have a case study that showcases how they helped cybersecurity company Proofpoint increase their deal sizes by 30% through account-based marketing.
- Uberflip: Uberflip is a content experience platform that helps marketers create personalized content experiences for target accounts. They have a case study that details how they helped a software company increase their conversion rates by 300% through account-based marketing.
These are just a few examples of companies that have successfully implemented account-based marketing strategies. ABM can be used in a variety of industries, from healthcare to finance to technology, and is a powerful tool for B2B marketers looking to engage with high-value customers and build long-term relationships.
How to do account-based marketing?
Here are the steps to follow to execute an effective account-based marketing (ABM) strategy:
- Identify High-Value Accounts: The first step in ABM is to identify the accounts that are most likely to generate revenue for your business. This involves analyzing data and conducting research to understand which accounts have the highest potential value.
- Develop Personalized Messaging: Once you've identified your target accounts, the next step is to create personalized messaging that speaks directly to the needs and pain points of those accounts. This can involve creating customized content, email campaigns, social media messaging, and other marketing collateral that is tailored to the specific needs of each account.
- Select Channels and Tactics: To reach your target accounts effectively, you need to use a variety of channels and tactics to engage with them. This might include email, social media, direct mail, events, and more. The key is to ensure that your messaging is consistent and relevant across all touchpoints.
- Align Sales and Marketing: In order for an ABM strategy to be successful, sales and marketing teams need to work closely together. This involves aligning on messaging and goals, sharing data and insights, and collaborating on account-specific campaigns and initiatives.
- Measure and Optimize: As with any marketing strategy, it's important to measure the success of your ABM efforts and optimize your approach over time. This might involve tracking metrics such as engagement rates, conversion rates, and pipeline contribution, and using this data to refine your messaging and tactics as needed.
- Repeat and Scale: Once you've developed a successful ABM strategy for your target accounts, you can repeat the process with new high-value accounts to continue driving revenue growth.
How do you measure the success of an account-based marketing campaign?
Measuring the success of an account-based marketing (ABM) campaign requires a different approach than traditional marketing. Here are some metrics that can be used to measure the effectiveness of an ABM campaign:
- Account Engagement: ABM campaigns are designed to build relationships with high-value accounts, so measuring engagement is an important metric. This can include tracking how many people within the target accounts are interacting with your messaging and content.
- Conversion Rates: ABM is focused on driving revenue growth, so conversion rates are a key metric to measure. This could include tracking how many target accounts have moved from the awareness stage to the consideration stage and then to the purchase stage.
- Pipeline Contribution: ABM is also focused on driving revenue growth by generating qualified leads and increasing pipeline contribution. Measuring pipeline contribution can help determine how much revenue your ABM efforts are generating.
- Sales Cycle Time: ABM can also help to shorten the sales cycle by building strong relationships with high-value accounts. Measuring the time it takes to move target accounts through the sales funnel can help determine the effectiveness of your ABM efforts.
- Customer Lifetime Value: ABM is not just about acquiring new customers, but also about building long-term relationships with high-value accounts. Measuring the lifetime value of your target accounts can help determine the overall success of your ABM campaign.
- Account-based Advertising Metrics: If your ABM campaign includes account-based advertising, metrics such as impressions, clicks, and conversions can be tracked to measure the effectiveness of your advertising efforts.
- Social Media Engagement: If you're using social media as part of your ABM strategy, measuring engagement metrics such as likes, shares, and comments can help determine how well your messaging is resonating with your target accounts.
How to build an ABM strategy?
Building an effective account-based marketing (ABM) strategy requires careful planning and execution. Here are the steps to follow to create a successful ABM strategy:
- Define Your Target Accounts: The first step in building an ABM strategy is to identify the high-value accounts that you want to target. This involves analyzing data and conducting research to understand which accounts have the highest potential value.
- Develop a Personalized Messaging Strategy: Once you have identified your target accounts, the next step is to develop a personalized messaging strategy that speaks directly to the needs and pain points of those accounts. This can involve creating customized content, email campaigns, social media messaging, and other marketing collateral that is tailored to the specific needs of each account.
- Choose Channels and Tactics: To reach your target accounts effectively, you need to use a variety of channels and tactics to engage with them. This might include email, social media, direct mail, events, and more. The key is to ensure that your messaging is consistent and relevant across all touchpoints.
- Align Sales and Marketing: In order for an ABM strategy to be successful, sales and marketing teams need to work closely together. This involves aligning on messaging and goals, sharing data and insights, and collaborating on account-specific campaigns and initiatives.
- Measure and Optimize: As with any marketing strategy, it's important to measure the success of your ABM efforts and optimize your approach over time. This might involve tracking metrics such as engagement rates, conversion rates, and pipeline contribution, and using this data to refine your messaging and tactics as needed.
- Repeat and Scale: Once you have developed a successful ABM strategy for your target accounts, you can repeat the process with new high-value accounts to continue driving revenue growth.
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