What Does Account Based Marketing Mean?

Account Based Marketing (ABM) is a strategic approach to B2B marketing that focuses on targeting and engaging a specific set of high-value accounts, rather than pursuing a broader audience. ABM involves a collaborative effort between marketing and sales teams to create personalised campaigns that speak to the specific needs and pain points of each targeted account.

Why Use Account Based Marketing?

ABM has become increasingly popular in recent years as B2B companies look for more effective ways to reach and engage key decision-makers within target accounts. By focusing on a smaller set of high-value accounts, ABM allows companies to deliver more relevant and personalised messaging, which can lead to higher conversion rates and a shorter sales cycle.

"Account Based Marketing (ABM) is a strategic approach to B2B marketing that focuses on personalised campaigns targeting high-value accounts. Do it well and you can align sales and marketing, increase relevance, and shorten sales cycles for better ROI."

Paul Mills
CEO & Founder, VCMO

Advantages of Account Based Marketing.

1. Better Alignment Between Sales and Marketing: ABM helps to break down silos between sales and marketing teams by creating a shared goal of targeting and engaging a specific set of high-value accounts. This alignment allows for better collaboration and communication, which can lead to more effective campaigns and higher conversion rates.
2. Increased Relevance and Personalisation: Because ABM campaigns are targeted at a specific set of accounts, they can be highly personalised and relevant to the specific needs and pain points of each account. This can help to increase engagement and build stronger relationships with key decision-makers within those accounts.
3. Shorter Sales Cycles: By focusing on a smaller set of high-value accounts, ABM allows sales teams to prioritise their efforts and focus on accounts that are most likely to convert. This can lead to a shorter sales cycle and increased revenue for the company.

Disadvantages of Account Based Marketing.

1. Resource-intensive: ABM requires a significant investment in time, resources, and technology to execute effectively. This can be a challenge for smaller companies or those with limited marketing budgets.
2. Limited Reach: By focusing on a specific set of high-value accounts, ABM campaigns may not reach a broader audience of potential customers. This can limit the overall impact of the campaign and may not be effective for companies looking to build brand awareness.
3. Difficulty in Measuring Success: Because ABM campaigns are highly personalised and targeted, it can be difficult to measure the success of the campaign in terms of overall impact on revenue or ROI. This can make it challenging to justify the investment in ABM to senior leaders within the company.

How does Account Based Marketing work?

• Identify High-value Accounts: The first step in ABM is to identify a specific set of high-value accounts that the company wants to target. This can be done using a variety of criteria, including company size, industry, revenue, and other demographic or firmographic data.
• Create Personalised Campaigns: Once the high-value accounts have been identified, the marketing and sales teams work together to create personalised campaigns that speak to the specific needs and pain points of each account. This may involve creating customised content, developing targeted ads, or hosting personalised events.
• Engage Key Decision-makers: The goal of ABM is to engage key decision-makers within each targeted account. This may involve reaching out to contacts at the company via, customer relationship marketing, email marketing or social media, hosting one-on-one meetings or demos, or creating targeted ads that speak directly to the needs of those decision-makers.
• Measure and Optimise: As with any marketing campaign, it's important to measure the success of ABM campaigns and optimise them over time. This may involve tracking key metrics such as engagement rates, click through rates, conversion rates, or revenue generated from each account, and using that data to adjust the campaign strategy as needed.

Recap of Account Based Marketing.

In conclusion, Account Based Marketing is a powerful approach that allows companies to focus their marketing efforts on high-value accounts, resulting in more targeted, personalised, and effective marketing campaigns. By creating a customised experience for each account, businesses can improve their chances of winning new customers, generating more revenue, and achieving better ROI on their marketing investments.

However, ABM requires careful planning, resources, and coordination between marketing and sales teams. It also requires a deep understanding of the target accounts and the ability to create relevant content and messaging that resonates with them. Therefore, before embarking on any ABM program, companies should assess their readiness and capability to execute such a strategy, and determine whether it aligns with their overall business goals and objectives. With the right approach, tools, and team in place, ABM can be a game-changing strategy that drives business growth and success.

About VCMO

VCMO helps SMEs and portfolio companies with the high-level marketing leadership they need to grow and succeed across the full business lifecycle. Its roster of highly accredited Fractional Chief Marketing Officers brings the expertise, strategy and execution to transform marketing potential into a competitive advantage that delivers predictable revenue and sustainable growth.