What Is Account-Based Marketing? Complete Guide to ABM

Are your sales and marketing teams wasting resources on bad-fit leads or low-value accounts? With** account-based marketing (ABM),** you narrow your targeting and focus on specific high-value accounts.

That means you can stop spending time on leads that will never convert. Instead, you can identify and engage the accounts that matter most, ultimately closing deals more efficiently.

In this guide to account-based marketing, we'll share an ABM definition, discuss key benefits, and cover how to set up a campaign. We'll also explore ABM tools and best practices so you can take steps to start now.

What is account-based marketing?

Account-based marketing is a growth strategy that uses personalized content and campaigns to target and engage certain companies. At the core of any successful ABM program is a list of high-value accounts.

Sales and marketing teams work together to tailor the buying experience to each of these accounts. They use marketing automation tools across multiple campaigns, creating customized experiences for each decision maker.

The goal is to establish as many touchpoints as possible. This strategy keeps your business top of mind with these accounts and unlocks opportunities for sales.

ABM allows B2B companies to create stronger relationships with target accounts. When implemented correctly, this B2B marketing strategy can also improve pipeline quality and increase ROI.

ABM vs inbound marketing

To understand this strategy fully, it's helpful to compare the account-based marketing definition above with inbound marketing. Here are a few important differences:

• Targeting: ABM focuses on decision makers within specific accounts, while inbound targets a much wider set of prospects based on more general behaviors.
• Personalization: ABM creates custom content and experiences at every stage of the customer journey, while inbound uses minimal personalization.
• Goals: ABM aims to nurture and convert high-value accounts, while inbound focuses on using demand and lead generation to build awareness and qualify leads.

Types of account-based marketing

There's more than just one way to run an ABM program. Most B2B companies** use two or more of these methods** to balance reaching mission-critical accounts with scaling the program successfully.

Strategic ABM

Strategic ABM uses significant resources to target a very high-value account using a one-to-one approach. Essentially, each account becomes a market of one. It's most common with enterprise customers.

An experienced marketer researches a specific account and works with a dedicated team to develop a strategy and a series of touchpoints. Then, the team produces custom content that aligns with the account.

Strategic ABM works best when you have deep research on a specific account and sufficient resources to develop a library of content that's likely to resonate. Consider using this method when the value of the account far outweighs the cost of the ABM program.

ABM lite

ABM lite uses a one-to-few approach. Instead of targeting a single account, ABM lite segments accounts into groups with shared qualities—such as the same vertical or similar business challenges.

With ABM lite, the team typically develops a single set of marketing materials to engage accounts. However, they customize the content for each company and role across marketing and sales channels.

ABM lite works best when you want to target multiple accounts in a certain segment but you don't have deep research for any of them. Consider using this method when the value of each account doesn't warrant a dedicated team.

Programmatic ABM

Programmatic ABM uses a one-to-many approach. With programmatic ABM, you can reach a much larger group of target accounts more efficiently.

Instead of manual customization, programmatic ABM relies more heavily on marketing automation. As a result, the sales and marketing content has the potential to reach thousands of accounts while still remaining relevant.

Programmatic ABM works best when you want to reach a large set of accounts at scale. Consider using this method when you have less data on your target accounts and you're willing to sacrifice some personalization.

Why you should use account-based marketing

Now that we've defined account-based marketing, let's cover why to use it. Here are some of the most important advantages for B2B marketing and sales teams.

Shorter sales cycles

One of the biggest benefits of account-based marketing is its ability to shorten sales cycles. In some cases, ABM programs have helped B2B companies reduce time to close by half.

This happens because ABM doesn't rely on a standard inbound marketing approach. Instead of using demand generation tactics to spark interest and then taking time to qualify prospects, ABM skips these steps entirely.

With ABM, you identify and connect with target accounts first. By building relationships with key decision makers, you can influence deals and generate conversions more efficiently.

Better alignment between marketing and sales

For many B2B companies, misalignment between sales and marketing is a major issue. In fact, 90% of sales and marketing professionals** report misalignment**.

Almost 100% believe this lack of alignment negatively affects both the business and the customer. After all, it can lead to wasted time for the business and inconsistent experiences for the customer.

ABM requires sales and marketing teams to pool resources and collaborate on strategy and execution. As a result, this method improves alignment between sales and marketing and makes marketing more efficient.

More deliberate use of resources

When marketing and sales teams collaborate on ABM, they devote resources to winning high-value accounts. As a result, they allocate resources more efficiently and focus effort on accounts that are likely to convert.

In contrast, inbound marketing tends to be far less efficient. Between prospecting and lead generation, teams often waste time and effort on accounts that never convert.

Greater relevance for key accounts

Personalization is a core component of any ABM strategy. By delivering custom content at each touchpoint, you increase the relevance of each interaction with a target account.

The more you tailor experiences to accounts, the better you can capture attention and build trust. As a result, you can create a better customer experience from the first touchpoint to when you close the deal.

Higher return on investment

For most B2B businesses, ABM pays off in a measurable way. Over 75% of marketers** report that ABM has a higher ROI than traditional marketing efforts**. And 26% report that ABM drives significantly higher ROI.

This happens because ABM prioritizes a specific set of target accounts rather than casting a wide net. As a result, it focuses on marketing and sales efforts that make an impact and encourage more efficient spend.

How to build an account-based marketing strategy

Use these steps as a guide to map out an ABM strategy for your business.

Clarify your ideal customer profile

Start by getting clear on your company's ideal customer profile (ICP). In other words, define the customer that's most valuable to your business and that will benefit the most from the solutions you offer.

To guide your ABM strategy, you need to know your ICP's:

• Industry
• Location
• Company size
• Annual revenue
• Tech stack

For B2B, an ICP refers to a business. We'll cover buyer personas (i.e., decision makers) later.

Identify high-value accounts

Once you've defined your ICP, you'll know the characteristics to seek out in a customer. The next step is creating a list of high-value accounts that fit your ICP.

Use a prospecting tool or a dedicated ABM tool to identify companies that align with your ICP. To maximize ROI, focus on accounts with the highest possible potential value.

Get to know target accounts

Next, research the list of accounts you've identified. Look for information like:

• Pain points, which tell you whether you can help the company
• Goals, which tell you if the company needs your solution
• Timeline, which tells you how soon the company plans to purchase
• Engagement, which tells you if the company has interacted with your business

You don't have to do this research manually. Many ABM tools provide this information, often using predictive analytics to understand how companies are likely to behave.

Score or rank target accounts

In many cases, you can't target all the accounts you've identified at once. By ranking the accounts, you'll know which to prioritize so your team can allocate ABM efforts and resources effectively.

One option is scoring the accounts manually. Assign scores to each account based on factors like how well the company fits your ICP, how likely they are to convert soon, and how much value they would generate.

Another option is using a lead scoring tool to simplify this part of the process. All you have to do is input your ICP data and account research. The tool layers on intent data to score the leads and rank them for you.

Pinpoint stakeholders for each account

Until this point, the process has focused solely on accounts. But to run a successful ABM program, you have to connect with people—not businesses.

The next step is identifying which stakeholders to connect with at each target account. Outreach tools and B2B databases can help you find relevant decision makers, including their current contact information.

Build a content library

Once you've made all account-related decisions, focus on the content you'll use for engagement. If you plan to prioritize strategic ABM and focus on a single account, you can simply build a custom content library.

For example, you might develop reports that address issues your top account is dealing with. Or you might design webinars based on the account's specific needs or use cases.

If you plan to use ABM lite or programmatic ABM, you'll need to create a content library that includes resources you can personalize later. For example, Livestorm's content library includes:

• Ebooks that serve as in-depth guides on issues our target customers often ask about
• Reports with original data that help our target customers understand current trends
• Webinars that educate and engage our target customers on relevant topics

Personalize content for each account and stakeholder

Next, personalize your content library to create custom content for each account and stakeholder. In addition to personalizing the formats above, consider developing custom:

• Outreach emails
• Display or social ads
• Dynamic website content

Run ABM campaigns on relevant channels

Once you've created a content library, you're ready to put your ABM approach into action. The best ABM channels to use depend on the accounts you want to target and the decision makers you need to reach.

Some of the best sales and marketing channels include:

• Social media platforms like LinkedIn, where you can connect with decision makers via direct messages or by commenting on their posts
• Ad networks like the Google search and display network, where you can target accounts and send them to personalized landing pages
• Email marketing, where you can send personalized outreach messages and share links to resources like webinars, ebooks, and reports

Engage decision makers

ABM is about much more than broadcasting information. With every touchpoint, focus on account engagement and building relationships with decision makers.

For example, when you host live webinars with Livestorm, you can engage with attendees in real time. Then, you can follow up with personalized emails or conference calls to continue the conversation.

Make sure to share data from each interaction with your sales and marketing team. This way, your team can continue to personalize every touchpoint based on past interactions and next steps in the customer journey.

Metrics to measure for ABM success

To determine if your ABM efforts are as successful as you'd hoped, you have to measure the right metrics. At a high level, you want to answer a few basic questions.

First, are you successfully building relationships with decision makers within target accounts? Next, how efficiently are you guiding accounts to a closed-won deal? Finally, what's the ROI of your efforts?

Here are some of the most useful ABM metrics to answer these questions:

• Website visits: The number of times decision makers from your target accounts have visited your website, including personalized landing pages
• Engagement rate: How frequently accounts open or view your content, such as downloading a report or watching a webinar
• Booked meetings: How many sales calls or demos you've booked from ABM activities
• Conversion rate: How frequently accounts turn into customers due to ABM activities
• Customer acquisition cost (CAC): The total cost of acquiring a customer, including marketing, sales, and advertising spend
• Revenue generated: The total amount of revenue you've generated from ABM activities
• ROI: The ratio of the cost of acquiring a customer to the revenue generated, which helps you measure the efficiency of your ABM spend
• Customer lifetime value (LTV): The total value of an account over the course of the relationship, which helps you compare different customers and find more high-value accounts
• Sales velocity: The time it takes to close deals, which can help you determine how well you're deploying content and building relationships

Account-based marketing tools

ABM runs much more smoothly when you use the right tools. Here are a few to consider for your tech stack.

Customer data tools

These tools are essential for identifying accounts and scoring leads.

Demandbase

With Demandbase, you can combine your data with third-party data and AI to identify target accounts and analyze intent. Then, you can segment accounts, manage opportunity lists, and monitor engagement to determine how decision makers interact with your business.

UserGems

UserGems provides buying signals and intent data so you can spot the ideal time to connect with relevant decision makers. You can use the platform's workflows to act on signals automatically and avoid missing important moments.

MadKudu

With MadKudu, you can analyze buying signals and use AI-powered lead scoring to identify the right leads to prioritize. Then, you can equip your sales team with customized signal-based playbooks to ensure they create the most relevant touchpoints.

Campaign execution tools

These tools are ideal for developing personalized content across channels.

Livestorm

Livestorm is ideal for creating customized webinars and virtual events for top accounts. With Livestorm, you can host live webinars to prioritize real-time engagement or offer automated webinars to connect with accounts at scale. Livestorm also provides analytics so you can see how viewers engage with your content.

Mutiny

With Mutiny, you can personalize website content for top accounts using AI-powered tools. Mutiny identifies website visitors and generates microsites for target accounts automatically. It also shares engagement data with your team so you know how decision makers engage with your site.

PathFactory

PathFactory uses AI to generate personalized content experiences on your website. With this platform, you can automatically display the most relevant content to visitors from specific accounts, route visitors more efficiently, and use the results to optimize your approach.

Influ2

Influ2 generates person-based ads so you can target decision makers with the right ad every time. This platform works across all major social and display networks so you can always reach and retarget with relevant ad content.

Marketing automation tools

These tools help with automating and optimizing ABM campaigns.

HubSpot

With HubSpot ABM, you can organize target accounts by tiers and use AI-powered recommendations to expand your list. You can also engage decision makers and track every touchpoint using HubSpot's built-in CRM and analytics tools.

Adobe Marketo Engage

Adobe Marketo Engage can automate email marketing, website personalization, and content delivery. It can also build AI-powered lists of top accounts and share insightful analytics to keep sales and marketing on the same page.

Salesforce

With Salesforce Marketing Cloud Account Engagement, you can automate campaigns, connect with key accounts, and track results across channels. Since Salesforce has AI-powered lead scoring and CRM tools, it may also help you build a leaner tech stack.

Account-based marketing best practices

Keep these best practices in mind to make your ABM campaigns as successful as possible.

Align marketing and sales teams

Account-based marketing doesn't rely on marketing alone. Instead, it must be a partnership. Sales and marketing alignment is critical for ABM.

From the beginning, the two teams have to align on both the ICP and the top accounts to target. They also have to agree on a lead scoring strategy so all efforts go toward prioritizing the same accounts.

Next, sales and marketing must be on the same page in terms of messaging and content. This kind of alignment is much easier to accomplish when you have a shared content library.

Finally, the two teams have to agree on which technology to use and which metrics to track. This way, everyone will be able to access the same data, work toward the same goals, and know when to make changes.

Use reliable data sources

From research to measurement, ABM relies on data at every step of the process. To run efficient sales and marketing campaigns, you need accurate data. Almost 80% of marketers who use five or more data sources report that sales accepts more than half of their leads.

Choose your customer data tools wisely. You'll avoid wasting resources on bad-fit prospects or reaching out to the wrong decision makers.

Be selective about reporting and analytics tools. You'll have an easier time identifying what's working so you can optimize your efforts.

Create the right tech stack for your team

It's possible to manage some elements of ABM manually. But when you want to increase ROI and improve efficiency, you have to invest in the right tools.

Aim to build a tech stack with tools that integrate with one another. When your tools share data, you'll have an easier time automating marketing tactics and analyzing results.

For example, Livestorm integrates with 1,000+ apps. From marketing automation tools to customer relationship management (CRM) tools to collaboration tools, it has the integrations you need to work more efficiently.

Revisit your approach and adjust as necessary

Like any marketing strategy, ABM isn't something you can set up and expect to run in the background with no oversight. Instead, it requires regular reviews and optimizations.

Use the metrics above to measure what matters most. Establish benchmarks and set KPIs for your ABM strategy.

Then, use your benchmarks and KPIs to see what's working and what isn't. Consider investing more in what's working and adjusting what isn't. Test new channels, try new tactics, or modify touchpoints.

Livestorm for your ABM strategy

When you want to include live or automated webinars in your ABM strategy, Livestorm can help. Our video conferencing and webinar software is ideal for connecting with decision makers one on one, in small groups, or at scale.

With Livestorm, you can:

• Develop unique webinars for target accounts
• Build custom landing pages for each event
• Connect with decision makers via video calls
• Sync data with 1,000+ Livestorm integrations

Curious how Livestorm works with your tech stack? Sign up for Livestorm and test it for free.