Account-based marketing

Account-based marketing (ABM), also known as key account marketing, is a strategic approach to business marketing based on account awareness in which an organization considers and communicates with individual prospect or customer accounts as markets of one. Account-based marketing is typically employed in enterprise level sales organizations.

Account based marketing can help companies to:

  • Increase account relevance
  • Engage earlier and higher with deals
  • Align marketing activity with account strategies
  • Get the best value out of marketing
  • Inspire customers with compelling content
  • Identify specific contacts, at specific companies, within a specific market

While business marketing is typically organized by industry, product/solution or channel (direct/social/PR), account-based marketing brings all of these together to focus on individual accounts. As markets become increasingly commoditized, customers see little or no difference between suppliers and their competitors, with price as the only obvious differentiators.

Background and differences with traditional business marketing

In the marketing of complex business propositions, account-based marketing plays a key role in expanding business within existing customer accounts (where, for example, wider industry marketing would not be targeted enough to appeal to an existing customer). In scenarios where the initial sale has taken several months, it is reported that account-based marketing delivers an increase in the long-term value of the customer.[1] ABM can also be applied to key prospect accounts in support of the first sale. For example, Northrop Grumman employed ABM to aid in the completion of a successful $2 billion deal.[2] Account Based Marketing has also been used at Shell to drive a $13 million deal.[3]

Research demonstrates that buyers are looking for their existing suppliers to keep them updated with relevant propositions, but are often disappointed with this. In UK research, existing suppliers came top of all the different information channels that IT buyers use to look for new solutions – but more than 50% felt that marketing by their suppliers was poor.[4] The research also demonstrates how much easier it is for organizations to generate more sales from existing customers than from new customers - 77 per cent of decision-makers say that marketing from new suppliers is poorly targeted and makes it easy to justify staying with their current supplier. By treating each account individually, account-based marketing activity can be targeted more accurately to address the audience and is more likely to be considered relevant than untargeted direct marketing activity.

The roles of sales and marketing teams

ABM is an example of the alignment of sales and marketing teams.[5] In the aligned model, organizations able to unite tactical marketing efforts with defined sales goals and use feedback from sales to identify new potential markets. For ABM to succeed, joint working relationship with sales is essential and marketing needs to be measuring and optimizing based on accounts.[6] ABM is targeted at accounts (or companies as a whole) as opposed to traditional inbound marketing, which is targeted at leads (or people within these companies). The need for sales and marketing alignment also comes from the fact that there is an inherent disconnect between marketers, who market to people, and sales people, who sell to companies (or structured groups of people).

Marketing will also take an increased role in developing intelligence on key accounts – as proposed by Peppers and Rogers (1993): “When two marketers are competing for the same customer’s business, all other things being equal, the marketer with the greatest scope of information about that particular customer […] will be the more efficient competitor.[7]

Account-based marketing and the IT industry

Organizations which are seeing the greatest current benefit from account-based marketing are IT, Services and Consulting companies. With complex propositions, long sales cycles and large customers, these organizations are ideal candidates for the approach. It is, though, spreading into other sectors and a benefit can be seen to be an increased return on time (ROT). Many suppliers have woken up to the fact that the revenues of some of their customers exceed the GDP of some nation states. They are changing the amount of their resourcing accordingly.

The first to codify the trend was Bev Burgess, VP of ITSMA. She co-created the approach with organizations like Fujitsu, BT, HP, and Accenture. Others have adapted it and modified it since.

Choosing the key account

Key accounts are accounts that are identified within organizations as being a focus for account-based marketing. Not all accounts meet the requirements to be designated as a strategic or key account and organizations need to be careful about which accounts to focus on for their account-based marketing efforts or risk losing a valuable client. When choosing, organisations should look at revenue history, account history, margins and profitability as well as the viability that the client in question would be interested in a long-term relationship. Lastly, asking what the client and the company have in common helps in solidifying the approach that the client cannot find this kind of service anywhere else.

There are also some red flags that help recognize that a relationship with a key account is about to change:.[8]

  • business that regularly would have come to the company goes elsewhere
  • a re-organization within the company forces a change in relationship
  • both involved companies aren’t seeing ROI from the relationship
  • mutual goals are not achieved

ABM programmes

Program frameworks

There are a number of different frameworks for account-based marketing campaigns but, in general, the following approach is used:

  • Create the strategic framework: methodology for selecting the accounts that will be focused on and framework of objectives and measures for the ABM programme
  • Planning workshop: joint marketing and sales session around each account to agree goals and explore understanding of the account and relevant propositions
  • Required research: marketing activity to build a more complete picture of the structure of the target organisation and its requirements
  • Create plan: bringing together existing corporate marketing activities with new account-specific communications to achieve account-specific goals
  • Execute: build a joint sales and marketing team to deliver on the plan
  • Review: apply measures such as the value of sales, amount of potential revenue in the sales pipeline, coverage of communications in the account, perception-shifts or appointments made

ABM framework Example

  • Account selection: Opportunity sizing & Propensity Modelling
  • Planning and insight: Account research and profiling
  • Messaging and propositions: Account vision and Propositions
  • Content and communication: Content, Digital Media and marcomms
  • Execution and engagement: Campaigns, events and seminars


Channel ABM

Where account-based marketing is delivered through channel (e.g. reseller partners), there are additional considerations to generating value from an account-based approach [10]

  • Partner Selection: assessment of partners in terms of marketing resource and capability
  • Multiple Stakeholders: partner and vendor marketing and stakeholder involvement is key in execution and nurture
  • Messaging and proposition: there is an opportunity to deliver hybrid vendor/ partner propositions and visions into the accounts
  • Orchestration: pragmatic execution of multi partner programs through ABM platforms can be problematic and costly - a platform tenancy model is required

Account-based marketing (ABM) products


  1. Account-based marketing: How it can help your company improve demand, awareness and profitability
  2. How Northrop Grumman Used Account-Based Marketing to Win a $2B Deal
  3. Momentum ABM's case study Archived November 29, 2014, at the Wayback Machine
  4. "The Marketing Practice's Decision-Maker Index research into account-based marketing perceptions". Archived from the original on 2008-09-26. Retrieved 2008-08-14.
  5. Kotler, Rackham and Krishnaswamy; Ending the War Between Sales and Marketing (2006) Harvard Business Review
  6. "Why Your Demand Team Can't Ignore Account Based Attribution". Retrieved 2016-01-12.
  7. Peppers and Rogers; The One-to-One Future (1993); Page 140
  8. "Fast Forward: Choosing and Working With Strategic Accounts". Archived from the original (PDF) on 2011-05-30. Retrieved 2009-02-11.
  9. Reference ABM Framework from Momentum ABM Archived November 29, 2014, at the Wayback Machine
  10. Ltd, Sherpa Marketing. "Channel ABM - ABM | Sherpa Marketing". Retrieved 2019-04-15.
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