No matter how great your ad campaigns are, the reality is that most of the eyeballs they capture and leads they generate will not become sales. For businesses looking to see the greatest return on investment (ROI), account-based marketing offers a way to focus sales and marketing efforts on high value accounts from the very beginning of the sales cycle.
Learn more about the benefits of account-based marketing and how to implement the strategy for your business.
What is account-based marketing?
Account-based marketing (ABM) is a strategic approach to B2B marketing that focuses on identifying, targeting, and engaging with specific buyers known as accounts. ABM takes into account the specific needs and goals of key accounts by combining sales and marketing efforts to deliver more personalized and relevant communications to prospective customers.
According to a 2024 report, B2B marketers primarily use ABM for:
- Customer acquisition (60%)
- Product-led growth (48%)
- Upselling (48%)
- Cross-selling (43%)
- Adoption (39%)
Account-based marketing vs. lead-based marketing
Account-based marketing and lead-based marketing are two different approaches to marketing a business.
Lead-based marketing is an inbound marketing strategy that seeks to generate general interest and then converts the interest into sales. Think of it like casting a wide net in the hopes of capturing a few good fish.
ABM, by contrast, is an outbound marketing strategy in which a company targets specific businesses it wants to turn into accounts. Think of it like seeking a prize fish and using a specific bait to catch it.
You will probably catch a fish either way, but if you have limited time or resources, or seek a specific type of fish, a more targeted approach might be more successful.
Benefits of account-based marketing
Certain leads are more likely to convert than others, and an ABM program allows you to account for those differences. Rather than pouring money into outbound efforts, you can focus on targeting those who have the highest likelihood of converting, or who might have the most long-term value. There are several benefits to account-based marketing strategies:
Align sales and marketing teams
With inbound marketing, it’s common for sales and marketing teams to operate independently: The marketing team focuses on bringing in as many leads as possible, and it’s up to the sales team to close the deals. ABM requires marketing and sales teams to work together from the very beginning.
With both teams focused on the same handful of accounts, it becomes imperative that they agree on which accounts to target and work together closely throughout the sales cycle. For example, a sales rep might learn about an account’s pain points during a meeting, then relay that information to the marketing team so they can craft messaging that aligns with those needs.
This collaborative process allows each team to benefit from the other’s expertise and ensures a consistent customer experience.
Increase efficiency
Account-based marketing (ABM) is a strategic approach to marketing that focuses on targeting specific accounts rather than individual leads. This approach is more efficient because it allows marketers to tailor their message to the specific needs of each account, resulting in more relevant and engaging content that resonates with their target audience.
ABM eliminates the need for marketers to create content for a broad range of leads and instead allows them to focus their efforts on the most promising potential customers.
Streamline the sales cycle
The sales cycle in B2B transactions can be long and complicated thanks to the multiple decision-makers involved. Account-based marketing, however, can help buyers reach a purchase decision more quickly by streamlining the sales process. It does so by targeting all stakeholders from the beginning of the buyer’s journey rather than working upward, one by one, to the final decision-maker.
How to implement an account-based marketing strategy
- Identify target accounts
- Know when your account is ready to buy
- Research key players
- Define content and personalize messaging
- Execute targeted campaigns
- Continue to support your accounts
1. Identify target accounts
Any ABM strategy begins with identifying the accounts you want to target. You need to not only ensure that your product is a good fit for the potential customer, but also that they are a good fit for your business. This includes wholesale business opportunities.
“It’s so hard for entrepreneurs—who are so desperate for people to like us—to say no, and it is critical,” Brad Charron, CEO of protein-bar brand Aloha, says on Shopify Masters. For Brad, that meant saying no to big-box stores and focusing on smaller regional partners until Aloha had grown.
Once Aloha had expanded, Brad went after large retailers. “I could go to that naturally from a position of strength, as opposed to just trying to throw stuff on the wall and see what hits,” he says.
Sean Frank, CEO of accessories brand Ridge, agrees with this strategy. “Do not rush into a retail relationship,” he says on Shopify Masters. “It is one of the few things you do that can kill your brand.
“I’ve seen a lot of great brands go bankrupt because they pursued too big of wholesale relationships for the size that they were in right now.”
Before targeting the biggest accounts in your industry, make sure you have the resources to meet their needs.
In addition to financial considerations, ask yourself if the account’s business model and core values align with yours. It will be much easier to market to an account that shares your goals.
For example, Brad explains why Aloha targeted online grocery store Thrive Market and not drugstore chains.
“Thrive Market felt like the most discerning consumer. They have so many values-based decision factors,” Brad says. “They care about what they offer to consumers. That was important.”
On the other hand, he says, “[Drug stores are not interested in making sure the shelves are stocked with the best and greatest protein bars or drinks or powders. It’s not their primary business model.”
2. Know when your account is ready to buy
Timing is crucial for ABM.
“Even if [the buyers] love you, you have to align with their buying cycle and their shelf space,” says Sean Frank, CEO of accessories brand Ridge.
If your target account has a buying schedule, find out when that is so you can plan your marketing strategy around their calendar. This might involve working with the product team to ensure new offerings will be ready on your customer’s timeline or securing renderings or samples of new products before buying starts. It could involve launching a public relations (PR) campaign ahead of the buying cycle to create buzz.
Kat Kavner, cofounder of Heyday Canning Co. explains in an episode of Shopify Masters how this works for grocery stores.
“Most of the bigger retailers have what are ‘called category review cycles,’” Kat says. “We’re in the bean category, there’s the baking-mix category, the ice cream category. For all of those different sections of the store, there is a set calendar when the buyers who make the decisions of what goes on the shelf and what maybe gets kicked off the shelf review everything and decide if they’re going to bring something new in.”
During the review period, you can submit your products for consideration. Outside that window, you may not be able to pitch your product. But that doesn’t mean you can’t use ABM techniques the rest of the year. Just be aware of your accounts’ buying cycles so you can build your marketing strategy around these crucial periods.
3. Research key players
Figure out who’s who with your target customer. Determine who makes the purchase decision and identify anyone else who might be a stakeholder in the buying process, including who will actually be using your product or service (the end user).
Some good ways to do this are:
- Checking the account’s website, particularly the About page, for staff bios
- Searching for the account on LinkedIn and identifying potential stakeholders by job title
- Asking current customers for referrals within their industry
After identifying key internal players, marketing and sales teams should work together to craft a strategy that focuses on building long-term, authentic relationships with key players. For example, a member of the sales team might ask a contact to set up an introductory meeting with a key player.
During the meeting, the sales rep asks if they can send some product samples. The marketing team uses the information from the call to send a personalized selection of product samples with a note explaining how each product is relevant to the client’s needs. The sales rep can then follow up to ask the client what they thought of the product. This information can be used to adjust messaging, packaging, or the product itself.
4. Define content and personalize messaging
With ABM, you have the opportunity to speak directly to your target accounts about why they should choose your product.
Research your target accounts’ needs and pain points so you can create marketing materials that highlight how your product can solve their particular problems. Talking to key players is a great way to get this information. Your account will likely be considering multiple options, so stay up to date on what your competitors are doing as well.
For example, when marketing to grocery stores, “You have to be very clear in understanding everything else that they have in the store, everything else in the competitive landscape for your given brand, and be able to clearly argue why your product is different and better and brings something new to that category that they don’t currently have,” says Kat of Heyday Canning Co.
“It all starts with really digging in and doing your research in the category and being able to speak to why you deserve that very precious limited shelf space that they have available.”
5. Execute targeted campaigns
Once you know what you want to communicate to your target accounts, you have to figure out how to reach them. Examples of targeted marketing campaigns include:
Paid advertisements
Platforms like Facebook and LinkedIn that sell digital ads allow granular targeting. These platforms can help you reach your target customers (e.g., office managers in your city) with tailored ad creative.
Custom landing pages
You don’t have to send people who click your ads to your homepage—in fact, you probably shouldn’t. Instead, consider designing custom landing pages to speak directly to the specific customers who see and engage with your targeted ads.
Webinars
Webinars can nurture relationships by speaking directly to high-quality buyers’ specific needs and concerns. For buyers early in the sales cycle, a webinar or online course can help show how your product or service can solve a problem or meet a need. You can also use webinars to nurture relationships with existing customers by showing them how to make the most of their purchases.
Events
In-person events like sponsored booths at conferences or festivals and VIP dinners can be valuable opportunities to meet face-to-face with stakeholders from high-value accounts.
Email campaigns
ABM email campaigns should feel more personal than traditional lead-based drip campaigns. Toward the end of the sales cycle, touching base with decision-makers via email can be an effective way to reinforce your messaging from other areas (like webinars and events) and close deals.
6. Continue to support your accounts
Your work isn’t done once you’ve won an account. You need to keep that account by doing the following:
Providing support
If you sell products to wholesalers, you might provide them with marketing materials, such as assets they can use to promote your product in-store or online.
For example, Roxana Ontiveros, product marketing lead at skin care company Topicals, writes product copy “that will not only go in our product pages but will also help support some of our assets at Sephora and some of our retailers.”
This ensures a consistent customer experience for those who visit both Topicals’ website and Sephora.
Continuing to market new features
Send emails to customers when you release a new feature or fix a bug. If you have a physical product, let wholesalers know when you plan to release a new product or if you’re reformulating or changing your packaging.
Marketing your products directly to consumers
Once you’ve forged a relationship with a wholesaler, don’t forget about marketing to your end users as well.
“Getting in the store is one thing, and then staying in the store is a whole other thing,” Kat of Heyday Canning Co. says. “And the way that you stay is to make sure that the product actually sells off the shelf once it gets on.”
Kat recommends doing everything that you can to support sales, from building brand awareness to offering coupons to doing in-store sampling.
Maintaining relationships
Schedule regular check-ins with your accounts to better understand their evolving needs and pain points.
Read more
- Marketing Campaign- A Guide to Building Marketing Campaigns
- How to Create a Referral Marketing Strategy [+Definition
- The 13 Most Powerful Shopify Discount Apps To Use
- 5 Free Advertising Strategies True Rivalry Uses to Gain Exposure
- Shopify’s Entrepreneur-in-Residence- 'No, Influencer Marketing Isn’t Overhyped'
- 7 Best Inbound Marketing Strategies for Your Business
- What Is Marketing? A Definition and Basics Guide
Account-based marketing FAQ
What is an example of account-based marketing?
An ecommerce skin care brand might use an ABM strategy to close a deal with Sephora. They first might look at what kinds of skin-care products Sephora already sells and position themselves as filling a need that isn’t being met for Sephora’s customers. The brand would then look up Sephora buyers so that they could target multiple stakeholders with product samples and communication.
Is account-based marketing B2B?
Yes, account-based marketing (ABM) is a B2B marketing strategy. It is a personalized approach to marketing that focuses on targeting a specific set of accounts that are identified as high-value prospects. Account-based marketing is used to build relationships with individual accounts, as opposed to marketing to a wide audience.
Why is account-based marketing better?
Account-based marketing (ABM) is a strategic approach to marketing that focuses on targeting specific accounts rather than individual leads. This approach can be more effective than other B2B marketing strategies because it allows marketers to tailor their message to the specific needs of each account, resulting in more relevant and engaging content that resonates with their target audience.
