Account-based marketing (ABM) is a B2B strategy that points sales and marketing at a short list of named companies instead of a wide crowd. The team picks the accounts first, then builds messages for the people who buy at each one. A small team can start with as few as ten accounts.
This guide explains what ABM is, how it differs from lead generation, the three common types, and a simple way to run a first pilot.
What ABM means
MarTech describes ABM as a strategy that lines up sales and marketing to deliver targeted advertising and personal content to high-value accounts. It rests on a simple fact: in B2B, a group of people often makes the buying decision, not one person.
CXL notes that if you ask ten people what ABM is, you will get ten answers. Some see a sales tactic. Others see a content plan. Its own working definition is an approach where marketing and sales work together to nurture target accounts and win or keep customers.
Sources: MarTech, "What is account-based marketing or ABM and why are B2B marketers so bullish on it?"; CXL, "A Complete Guide to Account-Based Marketing"
How ABM differs from lead generation
Lead generation casts a wide net. Marketing attracts many people, scores them, and hands the best to sales. The company is found as a result of who responds.
ABM turns that order around. The team names the companies it wants, then reaches out to the people inside them. MarTech says ABM "flips" the usual funnel: it starts with a small group of accounts and widens as they move toward a deal. CXL quotes Sangram Vajre, who says ABM turns the lead funnel into a cone: you identify the accounts you want to engage, then market to each contact in them.
| Question | Lead generation | Account-based marketing |
|---|---|---|
| Where does the work start? | With a broad audience | With a list of named companies |
| Who gets the message? | Anyone who fits and responds | The buying group at each chosen account |
| Who owns it? | Mostly marketing, then a handoff | Sales and marketing together |
| How is it measured? | Leads and their quality | Progress and revenue at the target accounts |
The two can live side by side. MarTech points out that inbound marketing stays important, and many marketers add ABM to take back some control of the process.
Sources: MarTech, "What is account-based marketing or ABM and why are B2B marketers so bullish on it?"; CXL, "A Complete Guide to Account-Based Marketing". The table is the editors' own summary of those descriptions.
The three types of ABM
The research firm ITSMA groups programs by how much they are tailored. MarTech and CXL both use its three labels.
| Type | Reach | What it looks like | ITSMA benchmark, as reported by CXL |
|---|---|---|---|
| Strategic ABM | One to one | Highly customized work for a single account | Average of 14 accounts; deals of $2M and up |
| ABM Lite | One to few | Lightly customized programs for clusters of similar accounts | Average of 50 accounts; deals of $250K and up |
| Programmatic ABM | One to many | Software helps personalize messages for many named accounts | Median of 725 accounts; deals of $50K to $250K |
The pattern is easy to see. The bigger the deal, the fewer the accounts and the more custom the work. MarTech adds that smaller firms may lean on the one-to-many style, while large firms may want one-to-one work for their key accounts. Many companies mix types.
Sources: MarTech, "What is account-based marketing or ABM and why are B2B marketers so bullish on it?"; CXL, "A Complete Guide to Account-Based Marketing", citing ITSMA benchmarks
How a small team can start with ten accounts
CXL advises a pilot before any big commitment. A pilot should be big enough to measure and small enough that a miss does no harm. In the editors' view, ten accounts is a sensible size for a small team, since one or two marketers and one or two sellers can serve that many by hand. Here is a plain way to run it.
- Pick one goal. CXL says the top goal for 90% of companies is new business. Others are bigger deals, faster sales or keeping customers.
- Agree on the list together. Sales and marketing choose the ten names. MarTech suggests starting from your ideal customer profile: industry, company size, budget, region and the technology the account uses.
- Look for signs of interest. CXL suggests free steps such as Google Alerts on key topics, and watching LinkedIn for hires and departures at the account.
- Map the buying group. List the roles who will weigh in, not just one contact.
- Make something for each account. That could be a short note, a useful chart for their industry, or an invite to a call. Keep it relevant to what they do.
- Review every few weeks. Check which accounts replied or moved forward, and adjust.
Scale matters here. CXL gives an example: if your usual inbound close rate is 5%, winning 20 new customers would mean about 400 target accounts. It warns that a team of two would struggle to serve 400. A list of ten is where a small team can learn the method before it grows.
Sources: CXL, "A Complete Guide to Account-Based Marketing"; MarTech, "What is account-based marketing or ABM and why are B2B marketers so bullish on it?"
A real-world example
CXL describes how the data company Snowflake used ABM. It had only 25 salespeople and wanted to triple revenue. It moved away from broad demand generation to a focused ABM program.
The team limited each marketing development rep to 100 accounts. Each salesperson then picked a top 10 for the most custom, one-to-one work, and the team reviewed those ten each quarter. Other accounts got lighter one-to-few programs. CXL reports that within 15 months Snowflake grew more than 300% and lifted click-through rates by 150% on its one-to-one ads. These are results CXL attributes to the company, and your own results will differ.
Sources: CXL, "A Complete Guide to Account-Based Marketing", Snowflake case study
Mistakes to avoid
- Choosing accounts alone. If sales does not agree with the list, it will not follow up.
- Going too big. A long list with thin content looks like ordinary mass marketing.
- Skipping measurement. MarTech reports that more than a third of B2B marketers surveyed by ITSMA named tracking and measuring ABM results as a top challenge. Decide how you will judge success before you begin.
Sources: MarTech, "What is account-based marketing or ABM and why are B2B marketers so bullish on it?", citing ITSMA research
Sources
- CXL, "A Complete Guide to Account-Based Marketing: Win Over Your Ideal Customer," published June 2, 2022, updated December 27, 2022. cxl.com
- MarTech, "What is account-based marketing or ABM and why are B2B marketers so bullish on it?" September 24, 2022. martech.org