What is account-based marketing?

Account-based marketing (ABM) is a focused growth strategy in which Marketing and Sales collaborate to create personalized buying experiences for a mutually-identified set of high-value accounts.

Before we take a look at the additional benefits of account-based marketing and specific tactics you can implement at your company, let’s review its relationship with another important strategy: inbound marketing.

Account-Based Marketing and Inbound Marketing

Similarly, when paired, account-based marketing and inbound marketing have the power to make waves (the good ones) for your business.

Account-Based Marketing Framework

ABM works differently from a traditional sales funnel. Though ABM can be implemented across different industries and types of businesses, a general framework needs to be followed to ensure its effectiveness. Here are the key components of an account-based marketing framework.

Marketing-Sales Alignment

The working relationship between sales and marketing organizations is mentioned several times throughout this article, because its importance can’t be overstated. To have a comprehensive approach to ABM, and to ensure target accounts receive an engaging buying experience, marketing and sales have to be on the same page.

When implementing ABM, sales and marketing organizations will need to agree upon resource allocation for each target account, assigning roles and responsibilities to ensure a seamless transition for the customer between marketing and sales activities, and determining how to measure the success of their efforts.

Account Qualification

How does your company determine what constitutes as a high-value account? Creating an ideal customer profile for the accounts your company wants to target is a key component to answering this question and creating an ABM framework. It’s also worth noting both marketing and sales should be participating in these conversations.

As you determine what qualifies a potential account, consider these factors:

• Financials: With your company’s sales goals in mind, consider how much revenue can be generated from an account.
• Scalability: Based on what you know about the potential account’s business performance, is there potential to grow the account in the future? Consider additional offerings your company could provide to retain and grow the account.
• Competitive Landscape: Who are your competitors selling to? Understanding who is currently in the market for products and offerings like yours can help you identify future account opportunities.

Go-to-Market Approach

Once marketing and sales are aligned on approach and which accounts to target, it’s time to map out a go-to-market plan.

Understand exactly how a new customer would move through the sales process using an ABM approach. While preparing to go to market, you may find areas of friction that need to be addressed or areas of poor communication that can be strengthened.

Additionally, because a personalized experience is so important in account-based marketing, your team will want to be on the lookout for additional ways to add value and deliver a premium experience to these accounts.

Account-Based Marketing Strategy

In order to get the most out of an account-based marketing approach, you’ll need a sound strategy in place. Consider following these steps to create and implement an effective account-based marketing strategy.

1. Create alignment between your sales and marketing teams.

Marketing-sales alignment is crucial for successful account-based marketing implementation. In order to create a custom buying experience, a customer will need to have a seamless transition from being acquired as a lead through the final sale.

To improve synergy between marketing and sales, both organizations must commit to clear communication and find a middle-ground to ensure the marketing team is acquiring leads the sales team can properly sell to.

If you’re just getting started with ABM, having a small task force of one marketer and one salesperson who work together to identify and sell to target accounts is sufficient. As your efforts scale, prioritize having your marketer support additional salespeople, as one marketer can typically remain aligned with up to 10 salespeople, and each salesperson can manage up to 10 accounts.

2. Conduct research to determine account personas.

Once marketing and sales align on their approach, the organizations can work together to ensure your company is targeting the correct account personas.

This usually begins with a period of research to identify which accounts to pursue. When identifying customer personas for an account-based marketing approach, marketers should consider:

The mission, vision, and business objectives of their ideal customer.

• If any high-value accounts are currently engaging with your company’s Inbound approach.
• The current stage of business maturity, company size, and growth trajectory.
• Revenue model, and spending patterns.
• The tools and platforms their ideal customer is currently using.
• Though there are countless ways to identify key accounts, what’s most important is that marketing and sales agree on which accounts to target.

3. Create account plans.

After determining which accounts to target, it’s time to build account plans. This entails having the marketing and sales teams work together to map out the potential leads they’ll need to attract to reach their target accounts, and what content they’ll need to produce to engage with this audience

4. Attract contacts associated with target accounts.

Ideally, using Inbound methodology will help you attract contacts associated with your target accounts. If you need additional contacts, your next step is to determine where your ideal contacts are currently going to find solutions related to what you offer and make sure your company is visible and represented in these spaces.

Places you may get in front of contacts include events, industry publications such as blogs and newsletters, and targeted ad placements. While it can be tempting to try to get visibility for your company through all available avenues, prioritize the channels that are most relevant to your target accounts and contacts.

5. Get the buying committee involved.

As you build relationships with key contacts, make sure both sales and marketing are actively engaging everyone who will be involved in the buying decision. Though this point in the buying process is typically led by sales, marketing should be ready to support by creating relevant materials to reinforce messaging.

To measure the health of an ABM strategy, marketing and sales teams can use the following metrics:

• Identifying the buyers associated with target accounts and tracking interactions with these buyers.
• Data points related to the health of the deal—creation date, velocity, and close rate.
• Revenue attributed to target accounts.
• Once this strategy is in place, your marketing and sales organizations can repeat the process with new and existing key accounts to attract and retain high-value customers.