Account-Based Marketing (ABM) Basics, Examples, and Ideas

Great things can happen when sales and marketing combine their unique skill sets to achieve a common goal, especially in today’s fast-paced marketplace. One proven technique is account-based marketing (ABM). ABM involves selecting high-value B2B accounts and then targeting each with a well-planned, personalized marketing campaign to enhance the buyer’s journey, shorten the sales cycle, and increase revenue.

Below, we outline how ABM works, identify the elements used to create and implement a successful ABM campaign, explain why ABM can produce substantial marketing return on investment (MROI), and provide helpful account-based marketing examples.

What is account-based marketing?

ABM is a versatile strategy that unites sales and marketing to select qualified B2B leads and then develop highly customized marketing campaigns for them. The process is designed to land new high-value accounts and drive sales with existing accounts. ABM can target an individual client or a well-defined market segment or subsegment. It can also be a critical component of startup marketing plans for new companies, showcasing its adaptability to various business contexts.

Compared to traditional inbound and outbound marketing, ABM custom-tailors marketing campaigns directly to the needs, preferences, challenges, and pain points of specific companies or decision-makers within those companies. In doing so, ABM increases engagement quality throughout the buyer’s journey and can build and foster stronger client relationships.

For example, a startup technology team may identify a specific company that is a perfect target for their employee performance management software. By demonstrating that their cost-effective solution reduces time spent on the process and increases quality of the output, they may convert that customer and win word-of-mouth support for future opportunities.

Types of ABM

Three types of account-based marketing are most common:

1. Strategic ABM (one-to-one). Ultra-personalized campaigns that focus on a single high-value account, often involving highly customized content and unique forms of direct engagement.
2. ABM lite (one-to-few). Targets a select group of accounts that share common characteristics or challenges, using semi-customized marketing tactics and content.
3. Programmatic ABM (one-to-many). Leverages technology and data to target a larger number of accounts, such as a market subsegment, with more generalized, scalable marketing efforts, typically through digital channels.

The best choice for your company depends on the size and quality of your sales pipeline, the number of accounts you want to target with customized marketing campaigns, and your budget. Each ABM type requires varying levels of monetary investment and time the sales and marketing team must devote to it.

Strategic ABM (one-to-one marketing)

Strategic ABM targets an individual high-value account. To be successful, marketing and sales must have a firm grasp of the target account’s needs and goals to create hyper-targeted marketing campaigns. Although strategic ABM typically requires the most resources, it generally yields the highest MROI. This is the most traditional ABM.

ABM lite (one-to-few marketing)

ABM lite involves grouping accounts with similar challenges and goals into clusters of five to 10 to leverage creative and other resources. Sales and marketing teams must understand the customer profiles for targeted marketing, but the marketing isn’t as hyperfocused as strategic ABM. Compared to strategic ABM, ABM lite is best suited for teams with flexible budgets but somewhat limited numbers of team members.

Programmatic ABM (one-to-many marketing)

Programmatic ABM, or one-to-many marketing, markets toward larger groups of businesses with similar goals and needs. Customer demographics and market segmentation data are used to group hundreds or even thousands of accounts.

Typically, companies use customer relationship management (CRM) platforms, marketing software, or marketing automation tools to carry out this type of ABM. Programmatic ABM is more suitable for companies with more limited budgets because it uses fewer resources to target a large swath of customers.

Examples of ABM

Despite industry differences, several common types of ABM applications will have similar positive outcomes. Consider these examples and adapt for your own needs to create awareness, increase engagement, or provide guidance.

1. Personalized content campaign

In this example of healthcare account-based marketing, a specific hospital system or set of systems is selected for a strategic ABM campaign to promote and sell a new medical technology. Marketing messaging and content are uniquely tailored to different hospital stakeholders and decision-makers for each account.

The campaign may begin with a customized report detailing how the technology addresses the hospital's current challenges and goals, complemented by personalized emails or videos featuring success stories from similar healthcare institutions. A video or infographic targeted to the chief nursing officer (CNO) might highlight how the new technology can help improve the quality of care and streamline care efficiency. For the hospital’s CTO (chief technical officer), a video or webinar could focus on groundbreaking technical capabilities and explain how the technology would integrate into existing hospital systems. The ABM campaign may also include an exclusive invitation to the CMO (chief medical officer) to a virtual roundtable discussion with industry experts, focusing on the technology's impact on quality patient outcomes.

Outcome. Increased engagement with each key decision-maker to elevate chances of conversion.

2. Custom microsite campaign

This example of account-based marketing for an SaaS (software-as-a-service) platform involves using a small, focused website (microsite) created specifically for a particular enterprise client and showcases how the SaaS platform can address its unique challenges.

Elements may include a personalized welcome message from the CEO or account manager, case studies that highlight successful SaaS implementations in similar organizations, an ROI calculator, interactive demos, and a collection of white papers, webinars, and infographics tailored to the company’s pain points.

Outcome. Increased brand and product awareness and engagement, creating a path to follow-up meetings, demos, proposals, and sales.

3. ABM-focused content hubs

These personalized digital spaces give target accounts special access to a curated collection of industry-specific content tailored to their needs, interests, and pain points.

An ABM content hub may include insightful white papers, thought leadership articles, solution deep dives, and webinars dedicated to the latest industry trends and research reports. A content hub may also feature interactive tools like ROI calculators, assessment quizzes, and diagnostic tools that allow an account to input their data and see how the solutions offered could benefit their business.

Outcome. Engage a set of high-value accounts by providing relevant, valuable, and individualized content that guides them through their buyer's journey and drives sales.

Pros and cons

ABM has become a popular strategy, but like any strategy, it comes with its own set of advantages and challenges. Fortunately, with upfront planning, you can leverage the benefits and minimize disadvantages.

Pros

ABM's personalized marketing approach is a powerful tool for capturing the attention of sophisticated B2B customers, leading to more revenue and ROI in a shorter period.

For example, let’s say your business targets a niche within a certain market segment. Your umbrella messaging to that market may not resonate with them, so they ignore it or, possibly worse, decide you don’t understand their business. To overcome this and other challenges, ABM custom-tailors content and outreach at the account level, specifically to key decision-makers and influencers within the account.

Sales and marketing alignment

Sales and marketing teams often work together, but alignment between them can be challenging. With ABM, sales and marketing become allies, working toward a common goal through a shared strategy, intertwined process, and aligned compensation system. This can result in greater resource efficiency and overall efficacy.

Shorter sales cycles

An internal team of motivated, cross-functional stakeholders can generate more brand and solution awareness, capture an account’s attention, engage key decision-makers, and convert them into customers. Often, this results in an expedited sales cycle.

Clearer and improved ROI

According to a survey from Demand Gen Report, 76% of businesses using ABM report that a higher ROI is achieved more often than delivered by a generalized marketing program. An account-centric approach also makes attributing revenue and identifying direct costs easier, thus verifying ROI. Equally important, ABM streamlines the sales and marketing process compared to traditional lead generation. Removing unqualified prospects upfront lets you focus time and energy on the accounts most likely to convert.

Better resource allocation

Leads from broad-brush marketing campaigns require time and effort to qualify, groom, and advance through a sales funnel. ABM accounts are targeted before a campaign launches, so resources are laser-focused on exactly what is required to convert and generate revenue.

Cons

While ABM may sound like a marketing panacea, consider these potential disadvantages and adjust your expectations and plans to help ensure success.

Expense

ABM may require more time and resources to create highly personalized, account-level programs versus a traditional one-size-fits-all marketing campaign or a broad-brush segment-focused campaign.

With added expense, account-based marketing services are usually better suited for larger companies that can devote enough resources to make it a winning solution. Businesses striving to limit their ABM campaign spending due to budget concerns should consider putting the effort on hold until they have the necessary resources or, if possible, trial a programmatic ABM campaign that’s more cost-effective.

Narrows the target customer pool

Small or midsize companies interested in making a bigger splash in the market and gaining more customers may wish to target a broader audience versus focusing on a smaller selection of accounts in the sales and marketing funnel.

Failure to align on the correct target accounts

Enough time and resources must be allocated upfront to determine which accounts to target and develop and execute a sustainable strategy for each. Shortcuts at the outset of an ABM campaign can lead to failure to achieve sales and revenue goals.

Lack of accurate shared data

Accurate B2B data and intelligence are required to choose the correct target accounts, customize content and messaging, and select the most efficient channels.

Unrealistic expectations

During a time when sales and marketing teams are pushed to generate more revenue more quickly with improved ROI, you may be tempted to overpromise and hope to get lucky. Instead, set realistic expectations and achievable goals.

Sample ABM strategy

Account-based marketing allows you to target high-value potential customers and forge strong connections through individualized marketing and sales plans. However, you need a solid account-based marketing strategy for ABM to work.

Consider these steps when designing your ABM approach.

1. Establish your vision. How can an ABM strategy improve company revenue and create new business prospects for your organization? What companies are you hoping to reach? Don’t jump ahead to later steps without first envisioning the end goal.
2. Set goals. Consider setting goals that are specific, measurable, achievable, relevant, and time-bound (SMART) to clarify further what success looks like.
3. Define key metrics. Common examples include customer acquisition cost, conversion rate, and customer lifetime value.
4. Create a budget. Have a strong understanding of what you’ll need to spend to secure a new account. Factors like competition, brand awareness, and technology can impact your project budget.
5. Encourage buy-in from your team. For your strategy to succeed, your entire team must row in the same direction. Encourage greater buy-in by agreeing on the desired outcomes and educating leaders about the benefits of the campaign.
6. Align sales and marketing. For an account-based marketing strategy to be successful, the sales and marketing team must share a spirit of collaboration and accountability. Schedule regular meetings where both teams can come together to share wins, discuss progress, and ensure everyone is on the same page. Ensure compensation plans are aligned for goal achievement.
7. Invest in tools and training. Consider what marketing software or platforms can help you identify potential accounts and implement your plan.

How to implement account-based marketing

Don’t underestimate the time, human resources, and budget it takes to design, implement, and manage an ABM program. Understanding the steps can help ensure accurate estimates.

1. Identify high-value target accounts

Look for accounts that align with your offerings and are more likely to become long-term, valuable customers. Consider factors like their current pain points, the competitive landscape, and the potential for upselling or cross-selling opportunities.

2. Research and gather data

In addition to online research, tap into your existing customer base and sales teams to gather valuable insights about your target accounts. Conduct interviews or surveys to understand their specific needs, preferences, and buying behaviors. The more comprehensive your data, the better you can tailor your strategies.

3. Define your goals and objectives

Ensure that your goals and objectives align with both your marketing and sales teams. Break down your overall goals into smaller milestones to track progress more effectively. Regularly review and communicate these goals with your team to keep everyone motivated and focused.

4. Segment your accounts

Continuously analyze and refine your account segmentation as you gather more data and insights. Consider factors like their level of engagement with your brand, the potential for a partnership or collaboration, and the urgency of their needs. This dynamic segmentation will allow for more personalized and targeted approaches.

5. Build account personas

Conduct interviews or schedule meetings with stakeholders from your target accounts to gather firsthand information. Use this opportunity to empathize with their challenges, understand their priorities, and build relationships. This deeper understanding will enable you to tailor your messaging and content to resonate on a more personal level.

6. Craft personalized content

Use customer testimonials, case studies, and success stories to illustrate how your solutions can address the specific pain points of each account. Consider creating interactive content or hosting webinars to actively engage stakeholders and provide them with valuable insights and actionable takeaways.

7. Determine channels and tactics

Experiment with different channels and tactics to find the right mix that resonates with your target accounts. Use social media listening tools to identify platforms where your accounts are most active and engage in conversations. Consider retargeting ads to stay in potential customers’ minds and nurture relationships throughout their buying journey. Consider assigning consistent liaisons from your team for the most valuable accounts to further build relationships.

8. Execute and measure

Use A/B testing to assess the effectiveness of different content variations and tactics. Monitor the performance of your campaigns in real time, tracking metrics like click-through rates (CTR) and conversion rates. Regularly review the data and share insights with your team to optimize your strategies.

Measuring ABM success

As with any marketing program, success can be measured in several ways, although ROI and revenue generation are typically the ultimate objectives.

Because ABM aims to shorten the sales cycle and boost revenue with an improved ROI, metrics that go into your formula should include:

• Average contract value. Since ABM targets high-value accounts, the average contract value should be higher than the average value of all accounts.
• Win rate. Super-focused targeting and account-level customization should result in a higher-than-average conversion rate.
• Sales cycle length. ABM skips a lot of the lead generation and sales cycle process, potentially decreasing the time from the point of first engagement to closing a sale.
• Retention rate. Sales teams have always used account-based selling as a strategy, but using ABM to engage key decision-makers and influencers upfront will likely result in even stronger client relationships. ABM also helps you extend your messaging and offerings to clients more quickly to beat your competition to the mark.
• Net promoter score. This index, ranging from -100 to 100, measures customers’ willingness to recommend your products or services. ABM aims to develop stronger relationships with various individuals in a client’s organization and create a more enjoyable buyer journey. This can increase customer satisfaction and lead to a higher net promoter score.

Account-based marketing ideas

You can engage in account-based marketing in several ways. Every business and customer is different, so every ABM campaign should be different. Let’s review five account-based marketing examples in action.

Personalized video campaigns

Create short, personalized videos addressing each target account's specific pain points and challenges. You can send these videos by email or share them on personalized landing pages to grab the attention of key decision-makers.

The brand Brightcove creates “Meet Your Account Manager” videos to introduce team members to new customers. In each video, the account manager defines their role and shares how they can use videos to help the brand grow their business.

Source: Brightcove
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Host account-specific workshops

Host exclusive workshops or training sessions tailored to the needs of individual target accounts. Provide hands-on guidance and solutions to their specific challenges, demonstrating your expertise and building stronger relationships.

Since 63% of customers cite onboarding or training as a key reason to purchase a product, these workshops can be incredibly helpful. Consider how you can use a training session to provide useful information and high value while also encouraging potential clients to envision what you can offer through a paid service.

Let’s say you’ve identified a potential client at a software company. To connect with key decision-makers, you can create an interactive workshop focused on their specific needs while showing how your product can provide a solution. You can foster a deeper connection between your team and their company and offer a better understanding of how your product could meet their needs.

Use LinkedIn’s account targeting feature

Use LinkedIn’s account targeting feature to deliver personalized content and ads directly to the LinkedIn feeds of key individuals within target accounts. Tailor the messaging and visuals to resonate with their industry and pain points.

For example, you can target ad campaigns based on specific demographics to reach the decision-makers at companies in your targeted group with the highest possible financial return. Doing so can drive more qualified leads and allow you to guide decision-makers throughout the buying journey.

Collaborate on content creation

Partner with key decision-makers from target accounts to cocreate valuable content like ebooks, reports, or industry insights. This collaborative approach can generate high-quality content and foster stronger relationships with the accounts.

For the best results, choose a partner who shares your vision and has similar goals, ensuring you avoid potential conflicts and work together effectively. It’s also wise to clarify your format and style from the beginning to avoid possible confusion.

Imagine you’re working with a cybersecurity company that provides data protection to banks and other financial institutions. You identify a global bank you’d like to work with and reach out to the bank with an idea about a collaborative project.

By working together, you can demonstrate your expertise, communicate an understanding of the bank’s key challenges, and build a deeper relationship with the bank’s leadership while also delivering a product that will provide reach to other potential customers.

‍Launch a podcast

Create a podcast designed for your target accounts. Invite industry experts from those accounts as guests to discuss relevant topics and address their pain points. This can establish your brand as a thought leader while strengthening connections with the target accounts.

For example, a consulting firm that focuses on helping executive teams develop better alignment and organizational health could create a podcast and invite key leaders from target organizations as guests.

The guests will appreciate the opportunity to share their expertise and benefit from the exposure, and your audience will find value in hearing what these leaders have to say.

FAQ

What’s the difference between account-based marketing and inbound marketing?

You may think ABM and inbound marketing are at odds, but they can work well together. ABM focuses on outbound tactics, such as starting a conversation with an account and sending personalized messages. Inbound marketing draws customers to you through content marketing, social media, search engine optimization (SEO), and advertising.

Example: Paid advertising is traditionally an inbound marketing tool, but it’s also a successful tool for ABM. So, instead of separating ABM and inbound marketing into silos, look at ways they complement one another and leverage these.

Is account-based marketing better than lead generation?

Traditional lead generation uses a broad approach to generate as many leads as possible, whereas ABM addresses a select set of high-value accounts. Typically, ABM accounts are known entities and not necessarily new leads, whereas lead generation can identify new leads.

Depending on your product or service mix, you may need both. The key to success is having the bandwidth and resources to support both.

What tools and technologies are commonly used in ABM?

ABM tools often include CRM (customer relationship management) systems such as Salesforce and Pipedrive, marketing automation platforms, data analytics tools, personalization software, and account-based advertising platforms.

What industries benefit most from ABM?

A wide range of industries successfully utilize ABM to drive sales and revenue, including financial services, technology and software, professional services, manufacturing, and healthcare and pharmaceuticals.

How does ABM fit into a broader marketing strategy?

ABM complements your overall marketing strategy by focusing on high-value accounts. In contrast, other campaigns like content and outbound marketing attract a wider audience, creating a comprehensive approach to brand awareness, lead generation, and conversion.

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Upwork is not affiliated with and does not sponsor or endorse any of the tools or services discussed in this article. These tools and services are provided only as potential options, and each reader and company should take the time needed to adequately analyze and determine the tools or services that would best fit their specific needs and situation.