Account-based marketing (ABM) is a B2B marketing strategy that focuses on targeting specific accounts or companies, rather than individual leads. It is a highly effective approach for businesses looking to generate high-quality leads and close more deals.

This is reflected in companies’ uptake of the strategy. In 2021, Hubspot’s State of Marketing report found that 70% of marketers were using account based marketing tactics, up 15% from 2020. Research from Dun & Bradstreet shows 64% of companies are using an ABM strategy, with a further 21% who weren’t using ABM planning to implement in the next 12 months. 

Account Based Marketing Benefits 

According to Gartner, when executed with expertise ABM can increase pipeline conversions by 14%. And 72% of respondents to Momentum ITSMA’s survey reported that ABM delivers higher ROI than other types of marketing.

As a result, it tops the spending priorities list with almost a third (28%) of the marketing budget dedicated to it. 71% of respondents expected their budget to increase by an average of 13.1%. 50% of respondents also said their companies were planning additional ABM hires.

Companies invest in ABM because it works. When asked about their satisfaction with the impact ABM had for their organisation, 16% respondents to the 2022 Demand Gen ABM Benchmark Survey said it was ‘greatly exceeding expectations. A further 31% said it was ‘exceeding’ and another 35% that it was ‘meeting’ expectations. Only 18% felt that their ABM efforts were underperforming. 

In Dun & Bradstreet’s research, respondents who reported being ‘confident’ or ‘extremely confident’ in their sales and marketing strategy were more likely to use an ABM strategy (78% extremely confident, 66% confident, 48% non-confident).

ABM Leadership Alliance research demonstrates that ABM programs generate substantial business results across the three Rs of marketing - Reputation, Relationship, and Revenue. 

Relationship: 71% of companies surveyed said they had seen measurable improvements in account engagement, relationship strength, and the breadth and depth of their relationships

Revenue: 55% reported an increase in revenue measures such as revenue per account, pipeline growth, deal size, and portfolio penetration.

Reputation: 34% of respondents reported that ABM returned value in the form of brand equity, improved perception, awareness, and customer knowledge.

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Choosing Your ABM Approach

ABM offers practitioners three distinct approaches to provide breadth and depth across different types of accounts.

• One-to-Many ABM where sales and marketing define priority accounts and use technology to engage and personalise the experience

• One-to-Few ABM where sales and marketing focus on small groups of accounts with similar business needs.

• One-to-One ABM where sales and marketing form individual account teams to execute highly-customised programs for specific accounts.

53% of ABM practitioners currently only use one type of ABM. The rest run blended strategies, combining types of ABM to balance the requirements of target accounts. 29% reported using two types, with 18% running all three types of ABM. (Momentum ITSMA, 2022)

ABM can be used for both new and existing clients. In Dun & Bradstreet’s research, 55% of respondents expected their organisation to focus on new client acquisition. Whereas 60% expected a focus on growing business with existing accounts, and 59% on customer retention and reducing churn.

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Defining Target Accounts

The first step to ABM success is in targeting the best-fit, most valuable accounts. This involves identifying the companies that are most likely to benefit from your product or service by defining your Ideal Customer Profile (ICP). 

This is an evolutionary process. When thinking about the accounts to include in their ABM program, respondents to the Demand Gen survey reported different levels of maturity in this area.

• 36% were still trying to define and strengthen their ICP.

• 47% said they have a strong handle on their ICP, but there was room to improve coverage of the target accounts.

• 40% felt sales and marketing were aligned on ICP, and had strong coverage of their target accounts.

Identifying target accounts is a common challenge. When asked to identify roadblocks to ABM success, 22% of Dun & Bradstreet’s respondents cited the company’s inability to identify target accounts. This was echoed by Demand Gen’s survey, where 33% of respondents said identifying or predicting in-market and ready to purchase accounts was a challenge. In Gartner’s research, 40% of companies report difficulty with collecting account and contact data.

According to the ABM Leadership Alliance, One-to-Many ABM strategies identify on average 6221 accounts, with One-to-Few ABM targeting 177 accounts, and One-to-One strategies targeting 39 accounts.

There are several ways to define target accounts, including:

• Firmographic data, including information such as company size, industry, location, and revenue.

• Technographic data, including information about the technology stack used by a company.

• Intent data, including information about a company's online behaviour, such as website visits and content downloads.

To effectively define your target accounts, use a combination of these data sources. According to Demand Gen 37% of ABM practitioners used standard firmographics and technographics. 30% leveraged intent data to identify buying signals and new target accounts and industries.

Tools such as LinkedIn Sales Navigator, DiscoverOrg, and Bombora can be helpful in identifying potential target accounts.

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Creating a Comprehensive Account-Based Marketing Plan

Once you have defined your target accounts, it's important to create a comprehensive ABM plan. This plan should include the following components:

Goals

Clearly define what you hope to achieve with your ABM strategy. According to Momentum ITSMA, the top goals of ABM programs are selling to new accounts (47%), growing business with existing accounts (44%), supporting specific deals or opportunities (29%), changing perceptions or strengthening reputation with target accounts (28%), entering new markets or selling to new types of buyers (12%)

Messaging

Develop messaging and content that resonates with your target accounts. For example, ABM marketers report creating content that is tailored to specific industries (64%), specific roles (42%), and that is based on the challenges and needs of a particular account (61%)

Tactics

Determine which tactics you will use to reach your target accounts. The most commonly used ABM tactics are email (84%), in-person events (70%), account based advertising (64%), outbound tele-prospecting (53%), direct mail (46%), and personalised website content (45%) according to Demand Gen.

Budget

Allocate resources appropriately based on the tactics you have chosen. According to Forrester, costs can vary widely. In 2019 the average ABM budget was around $350,000 (excluding headcount costs). Pilot programs averaged about $200,000, with more mature programs coming in at around $600,000. Very large organisations can have budgets running into the millions.

Timeline

An ABM strategy needs to be focused on long-term success, so set realistic timelines. According to Dun & Bradstreet, having sufficient time to execute the program was the second most critical factor cited for driving ABM success. Demand Gen’s benchmarking survey concurs. They found that ABM programs tend to be more successful for committed marketers who make a strategic investment. 59% of experienced ABM practitioners with programs over a year old reported that their ABM programs meet or greatly exceed expectations, while only 45% of novices reported the same level of success.

Sales and Marketing Alignment

A strong relationship between sales and marketing teams is the foundation for any successful ABM program. According to a report by Forrester, marketing and sales teams that work together are more likely to exceed their revenue goals by up to 6%, compared to teams that are less aligned.

66% of companies investing in ABM report a significant improvement in sales and marketing alignment. However, it still presents a hurdle to those just getting started. 38% of respondents to Demand Gen’s survey indicated alignment was an issue, with 41% of beginners versus 35% of experienced practitioners saying it was a problem.

By working together, sales and marketing teams can ensure that they are targeting the right accounts with the right messaging. Some examples of sales and marketing alignment tactics include:

• Account mapping: Work together to map out the key decision-makers within each target account. 

• Joint planning: Collaborative planning of campaigns and messaging for each target account.

• Shared metrics: Alignment around a common view of account data was reported as a priority by 97% of respondents to Dun & Bradstreet, with 60% saying it was “very important” to the success of the program.

It is important to create alignment early on in the process by agreeing on ultimate goals, direction, and key performance indicators (KPIs). This is an ongoing process, not a one-time effort. While technology can be used for reporting, the focus should be on communicating frequently to build and maintain agreement on accounts, approaches, responsibilities, and outcomes.

29% of respondents to the Demand Gen benchmarking report listed providing sales with the right content and messaging for target accounts as a top 10 challenge. But by addressing this challenge and providing sales enablement tools and resources, you can increase the likelihood of closing deals.

It’s also key to build a community of ABM practitioners that goes beyond sales and marketing to share best practices, learn from each other, and drive innovation. Provide teams with training on how to effectively engage with target accounts. Create playbooks that outline best practices for engaging with different types of decision-makers.

To effectively implement sales enablement tactics, it's important to have open communication. Ensure you provide a framework for sharing content and plays across functions and account teams. Leading ABM programs are more likely to collaborate with other teams and functions, including sales, customer success, and product marketing, to create a more comprehensive and effective ABM program. 46% of ABM leaders vs just 16% of all others take this step. 

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Multichannel Marketing Tactics

Multi-channel marketing is another key component of a successful ABM strategy. By using multiple channels to reach your target accounts, you can increase the likelihood of engagement and build stronger relationships with key decision-makers. 

This can include channels such as email, social media, direct mail, and targeted online advertising. 84% of respondents to Demand Gen’s benchmarking survey said they used email to engage their ABM list. 70% used in person events, 64% account based advertising, 53% outbound tele-prospecting, and 46% direct mail.

When asked about the 5 most effective program tactics for each type of ABM, respondents to the Momentum ITSMA survey identified:

• One to One: Account specific/bespoke content and thought leadership, executive relationship programs, email marketing and newsletters, in person events, webinars and virtual events.

• One to Few: Email marketing and newsletters, account specific/bespoke content and thought leadership, webinars and virtual events, paid social media, in person events

• One to Many: Email marketing and newsletters, paid social media, reverse IP/targeted digital ads/ retargeting, webinars and virtual events, paid search

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Personalisation and Content

Personalisation and customisation are key components of any successful ABM strategy. According to McKinsey, 71% of customers expect a personalised experience and 76% are frustrated when they don’t get it. 

By tailoring your messaging and content to specific individuals within an organisation, you answer your buyer’s expectations, increase engagement, and build stronger relationships.

Momentum ITSMA found that leading ABM programs are more likely to leverage account insights to create messaging and content that is tailored and relevant. 

• 62% of ABM leaders reported tailoring value propositions, versus only 33% of others.

• 40% of leaders created original assets specific to target accounts, versus 29% of others.

• 54% of leaders tailored existing content for individual accounts, versus 37% of others.

When Demand Gen asked what type of targeted content practitioners were leveraging in their ABM outreach, 51% said they created custom content for each account. 64% targeted content tailored to specific industries, 61% targeted content based on account challenges/needs, and 42% targeted content tailored to specific roles.

However, 34% also identified personalisation at scale as their biggest ABM challenge, with a further 32% identifying developing targeted content for specific accounts or personas as theirs.

In a 2021 B2B Buyers survey, 80% of marketers reported that their purchasing decisions are influenced by high-quality and easy-to-consume content and ABM marketers rely on a wide range of content formats. 

Most popular in the Demand Gen ABM benchmarking survey were whitepapers (65%) that provide in-depth analysis of industry trends or challenges. These were followed by case studies (62%) that showcase how a or service has helped similar companies. Also popular were articles/blog posts (56%), analyst reports (54%), original research (54%), video content (49%), interactive content (45%), and influencer or advocate content (35%).

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Social Selling

Social selling is another effective tactic for engaging with target accounts. By using platforms like LinkedIn, you can identify key decision-makers within target accounts and engage with them directly.

In Hubspot’s 2023 State of Marketing Report, 33% of marketers said their company uses LinkedIn to connect. The platform’s ability to search and target by company, role and seniority level helps you to both research and reach out.

It’s Sales Navigator tool is also indispensable for ABM practitioners. According to LinkedIn, using Sales Navigator to identify and connect with key decision-makers within target accounts leads to +45% larger deals and +15% pipeline.

You can monitor social media channels for mentions of your brand or industry and engage with individuals who are discussing relevant industry topics. Other than Sales Navigator, tools such as Hootsuite, Sprout Social, Brandwatch, and BuzzSumo can provide insights to help identify and engage with key decision-makers on social media.

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Account Based Advertising

Account-based advertising complements other ABM tactics as part of a well orchestrated campaign.

40% of B2B marketers surveyed indicated LinkedIn as the most effective channel for driving high quality leads. This is unsurprising thanks to LinkedIn’s professional audience and advanced targeting capabilities. You can upload a list of targets and deliver ads to specific individuals within each company, or use retargeting ads to reach individuals who have previously engaged with your content or website. 

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Measurement and Optimisation

Measurement and optimisation are critical components of any successful ABM strategy.  

According to the ABM Alliance, the most effective ABM programs are significantly more likely to measure ROI than other programs. 73% of the most effective programs measure ROI, compared to only 56% of all other programs.

ABM leaders invest in technology and data for deeper market and account insights to enable them to optimise performance. 76% of leaders in Momentum ITSMA’s research had invested in account insights, vs just 54% of others. 58% (vs 33%) had invested in intent data. 56% (vs 39%) in engagement insights. 52% (vs 35%) in attribution reporting. And 29% (vs 12%) in data management.

When asked to identify which metrics are most important to measure the success of their ABM initiatives, respondents to the survey identified pipeline growth (increase in sales funnel), revenue growth, engagement with events, meetings, campaigns etc, ABM ROI, and win rate/number of deals closed.

In a separate study, 62% of respondents cited the number of qualified leads as their top method for measuring the success of their ABM efforts. 51% cited net-new accounts engaged, 49% account engagement score, 44% contribution to pipeline revenue, and 42% win rate.

Conduct regular reviews of campaign performance KPIs and tie results back to revenue. Track multi-channel attribution to understand which tactics and campaigns are driving results so you can double down on what’s working.

Optimised campaigns required optimal data. Review target account lists regularly to ensure they are accurate and up-to-date. The Demand Gen survey found 30% of respondents review their lists quarterly and 29% do so monthly. Frequency is key to keeping ABM data clean.

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Give Yourself a Competitive Edge with ABM

According to the research, companies using ABM achieve higher returns, shorter sales cycles, and stronger customer retention. In short, account-based marketing is a highly effective strategy for B2B marketers. 

The key to ABM success is taking an orchestrated, data-driven approach to reach the right stakeholders with the right message when they are in-market. This requires tight coordination between sales and marketing to define target accounts, map decision-makers, develop personalised campaigns, engage on multiple channels, and continuously optimise based on performance data.

Strong account intelligence and execution underpins it all. New tools and technologies are making it easier than ever to gather account intelligence, target key decision-makers, tailor content, and track engagement.

Though ABM does require an investment of time and resources up front, the potential benefits for revenue growth, sales productivity, and customer retention make it a worthwhile growth strategy. With the right ABM tactics in place, and tight cross-functional collaboration, companies can transform their marketing and sales performance.

ABM success is within reach with the right partner. 1827 Marketing can provide the expertise and experience to make it happen. Connect with us today to learn more about how we help B2B companies like yours grow with our comprehensive account-based marketing services.