2. Why ABM works

... and why your playbook doesn’t anymore.

What you don’t know about your buyers

At some point, every business will need to purchase a product or service from another company, whether to solve a current challenge or prepare for future ones. But how does the decision-making process unfold? Let’s break it down...

Research from 6sense shows that buyers typically make their first direct contact with a business when they’re already 70% through their buying journey. Moreover, 83% of buyers initiate that first contact themselves.

This means that by the time a buyer reaches out to your company, they've already defined most of their purchasing requirements.

In fact, the 6sense study also reveals …

84% of deals are won or lost before you’re even aware of them, underscoring the need to understand the buyer’s journey from the start.

6sense research

The MQL is dead

For years, marketers and sales teams have clung to Marketing Qualified Leads (MQLs) as the gold standard for measuring success. But let's be honest—many are now noticing that MQL-based marketing isn't driving revenue like it used to, if it ever truly did.

This realization has ignited a significant shift toward prioritizing entire accounts rather than zeroing in on individual leads.

The "death of the MQL" has been a hot topic in the B2B space for several years, especially as ABM continues to gain popularity.

While it can be challenging to move away from a long-standing metric, there's a compelling case for embracing an account-based approach that focuses on the right leads, not just any lead.

The fundamental issue with relying on MQLs is their focus on individual behavior, even though research consistently shows that most B2B purchasing decisions are made by groups.

By concentrating solely on individual leads, we miss the broader context of group dynamics and collective decision-making.

This narrow focus leads to what's known as Buying Group Blindness.

For instance, Forrester’s 2021 B2B Buying Study found that over 80% of B2B buying decisions involve groups of three or more people.

Imagine this scenario: a prospect from a company submits an inquiry and gets labeled as an MQL, which is then passed along to the Sales Development team. Later on, another person from the same company submits an inquiry.

Instead of seeing this as a sign of heightened interest, it's often dismissed because the account is already being pursued.

As a result, high-intent signals from multiple individuals within the same account slip through the cracks.

This "blindness" doesn't just hinder us from capturing valuable insights from other group members; it also means missing out on opportunities to understand the inner workings of the buying group.

By not engaging with all the key players, we risk slowing down the deal—or worse, losing it altogether.

In today's complex B2B landscape, can we really afford to overlook these crucial connections?

Buying Groups and Journeys

Shifting away from a sole focus on individual MQLs opens our eyes to a fundamental truth: buying decisions are rarely made by just one person—they're made by a group.

So, when a new lead comes in, the real question is, what does this action signal show about the rest of the buying group?

If one member downloads content or fills out a form, what are the other members doing?

What content are they engaging with, and who are they consulting throughout the buying journey? Ultimately, how can we address their collective needs?

This is where ABM comes into play. ABM makes it possible to engage entire buying groups through personalized messaging and coordinated outreach at every stage of the buyer journey.

But who exactly are the key players in a buying group, and what does their journey look like?

There are typically three types of people involved in B2B buying decisions:

THE KEY BUYING GROUP
These individuals drive the initiative from start to finish. They are responsible for evaluating and selecting the product or service. For instance, an HR manager might lead the evaluation of a new HR software.

THE ULTIMATE APPROVERS
These are the decision-makers who give final approval. They ensure the purchase aligns with the company’s goals and budget. For example, a CFO may need to sign off on a significant investment.

THE INFLUENCERS
These could be end-users or experts who provide valuable input. An IT specialist might influence the decision on a new tech solution based on technical requirements.

Because no two buyer journeys are exactly alike, the roles and involvement of these personas will vary throughout the decision-making process. This is where understanding the dynamics of the buying journey becomes crucial.

Several factors influence the buyer’s journey, including:

TRIGGER EVENT
A new project or regulatory change can start the buying process. For example, compliance updates might require new software.

COMPANY SIZE
Larger companies may involve more stakeholders, making the decision-making process longer and more complex. Smaller companies may decide more quickly.

DEAL SIZE
Larger deals often involve a more extensive evaluation process and longer timelines, while smaller deals are typically faster and less formal.

RISK LEVEL
High-risk purchases tend to involve detailed assessments and more stakeholders. For instance, adopting a new enterprise system requires thorough evaluation.

INDUSTRY
Different industries have unique buying processes and requirements. A healthcare provider’s procurement process, for instance, will differ from that of a tech firm.

MARKET TYPE
Niche markets often have more complex buying processes due to less familiarity with the available solutions.

Let’s look at some specific cases to illustrate the diversity of B2B buyer journeys. →

Example 1 – General

Many marketers assume a straightforward buyer journey, but this often overlooks the complexities involved. In this example, the trigger event starts with the key buying group and initiates a buying journey that involves influencers and ultimate approvers at different times and varying levels of engagement. Most people might think this model fits most scenarios. However, in reality, this overlooks all the other attributes that create unique buying journeys.

Example 2 – Small Company

In a small company, a trigger event like a strategic shift initiated by the CEO can lead to a swift decision-making process, with influencers consulted as needed. The ultimate approver (the CEO) requires assistance from the key buying group to investigate potential solutions and seeks input from influencers to evaluate criteria before giving final approval.

Example 3 – Larger Company

A large multinational might face technical issues with existing software, triggering a journey that involves an HR specialist (influencer), the HR Manager (key buying group), and the Chief Human Resources Officer (ultimate approver). This process is more prolonged and involves multiple layers of approval.

Adapting to the buying journey

These examples highlight how different attributes—like company size and trigger events—can significantly alter the buyer journey.

By understanding these nuances, we can tailor our marketing strategies to engage each member of the buying group effectively, ultimately accelerating the decision-making process and closing more deals.

In summary, moving beyond MQLs to an account-based approach allows us to see the full picture of the buying group.

It helps us ask the right questions, engage the right people, and deliver the right content at the right time.

This holistic view not only improves our marketing effectiveness but also builds stronger relationships with our prospects, leading to better outcomes for everyone involved.

Efficiently Addressing Buying Groups

Implementing an ABM strategy empowers revenue teams to focus on key accounts by delivering personalized messages and campaigns that address the unique needs and challenges of each member within the buying group. Creating a seamless buying experience that resonates with every stakeholder involved in the decision-making process is essential.

Step 1

Identify Buying Group Personas

The first step is to pinpoint who the personas in the buying group are and understand how they interact throughout the buying journey. For example, in the purchase of a software solution:

HR Manager: Might initiate contact.
IT Department: Consulted to ensure compatibility with existing systems.
CFO: Evaluates ROI before approving any purchase.

Knowing when these personas become involved, the type of information they need to advance through the journey, and how they communicate with their peers is critical.

Step 2

Address Buying Group Concerns with Targeted Content

Once you've mapped out your personas and their journeys, the next step is to address the buying group's concerns with targeted content. Each persona has different priorities and decision-making criteria, so your messaging must be tailored to speak directly to their needs. This involves:

Understanding each persona's thought process and pain points at every stage of the journey.
Determining the optimal channel, timing, and format to deliver your message.
Crafting content that resonates with their specific challenges and objectives.

Step 3

Align Revenue Teams for Cohesive Strategies

Achieving this level of personalization requires strong alignment between all revenue teams. Both marketing and sales must work together to develop a unified view of key accounts and ensure cohesive strategies that effectively engage the entire buying group. This collaboration helps to:

Maintain consistent messaging across all touchpoints.
Share insights and feedback to refine targeting and outreach.
Accelerate the buying process by addressing concerns promptly and effectively.

By implementing these steps, you can create a more engaging and effective ABM strategy that not only reaches but also resonates with every member of the buying group.

This holistic approach enhances the likelihood of closing deals and building long-term relationships with key accounts.

Intent Data and In-Market Accounts

Understanding intent data to help identify in-market accounts and drive targeted engagement.

Casting a Wide Net vs. Targeted Focus

Many traditional demand generation programs aim to cast the widest net possible, hoping to capture as many leads as they can.

However, this strategy often falls short because it ignores a crucial fact: some of the companies reached will never actually be able to purchase your product or service.

Reasons include restricted geography, budget constraints, incompatible technology, or other demographic factors.

The Essence of ABM: Focusing on Good-Fit Accounts

At its core, ABM is about zeroing in on accounts that are a good fit for your product or service.

After all, there's little point in generating leads from companies that will never be willing or able to buy what you're selling.

By concentrating on good-fit accounts, you eliminate wasted ad spend, prevent sales teams from chasing unviable leads, and foster better alignment between sales and marketing teams.

The Power of Narrowing Down

This strategic focus can be refined on multiple levels, with benefits increasing exponentially at each stage:

Total Addressable Market (TAM)

This represents all the accounts that could potentially purchase your product or service.

Think of it as latent demand—these accounts may have a pain point your solution can address but might be unaware of the problem or the available solutions.

While some of these accounts may engage with your brand, significant effort is needed to move them toward a purchase.

Ideal Customer Profile (ICP)

Narrowing down further, the ICP includes accounts that meet specific criteria making them a go-to-market (GTM) fit.

These accounts resemble your best existing customers or align with your target customer base in terms of geography, culture, language, risk profile, and other factors.

Opportunities with these accounts tend to be larger and convert more easily.

In-Market Accounts

At the most focused level are the "in-market" accounts—those actively looking to purchase products or services like yours and who have either begun or are about to begin their buying journey.

Studies estimate that, on average, only about 5% of a B2B company's ICP is in-market at any given time.

Prioritizing In-Market Accounts

In-market accounts should be at the top of your priority list. They're more likely to convert, and deal cycles are typically shorter due to their explicit interest in what you're offering.

By focusing on these accounts, sellers can allocate their resources more effectively and achieve better results.

Leveraging Intent Data

Determining which accounts are in-market is often fueled by intent data, which has surged in popularity in recent years. Intent data providers aggregate a range of signals, including:

Website Visits
Keyword Searches
Activities Logged in CRMs and Marketing Automation Platforms
Engagement on Peer-Review Sites, Social Media, and Advertising Platforms

While intent data is an exciting development, it's not a silver bullet. When used outside the context of a comprehensive ABM strategy, intent-based campaigns shouldn't be expected to perform any better than traditional demand generation efforts.

The Importance of a Holistic ABM Strategy

Intent data is most effective when integrated into a broader ABM approach. Without the context of a well-defined strategy, intent signals can be misleading or misinterpreted.

A holistic ABM program ensures that:

Marketing and Sales Are Aligned: Both teams work together to interpret intent signals and engage accounts appropriately.
Messaging Is Personalized: Communications are tailored to address the specific needs and challenges of each account.
Resources Are Allocated Wisely: Efforts are concentrated on accounts most likely to convert, maximizing ROI.

Shifting from a broad demand generation approach to a focused ABM strategy enables you to concentrate on accounts that truly matter.

By narrowing down from your TAM to your ICP and finally to in-market accounts, you can engage prospects more effectively and efficiently.

REMEMBER…
Intent data enhances this process but must be used within the framework of a comprehensive ABM strategy to realize its full potential.

When to use ABM

Account-Based Marketing isn't a one-size-fits-all solution. It's best suited for businesses with longer sales cycles, complex products or services, and high customer lifetime value. In this section, we'll explore when to deploy ABM and how to determine if it's the right strategy for your organization, helping you make informed decisions based on your business model and target audience.

When the buying group is small and the transaction volume is limited, investing in expensive sales resources early in the buyer's journey doesn't make sense. In such cases, ABM may be too costly to justify for smaller purchases with shorter sales cycles.

Traditional demand generation strategies typically work best here, as they are more cost-effective and aligned with quicker decision-making processes. On the flip side, when dealing with prospects that are "too big to ignore"—usually larger companies with bigger budgets—you need to step up your game.

These high-value accounts require incredibly personalized content delivered across both digital and human touchpoints at scale. This is where ABM shines.

In complex and lucrative markets—such as when you're introducing a new concept that most people don't yet understand—ABM is worth the extra investment because it allows you to deeply engage with key accounts that have significant revenue potential.

However, implementing true ABM isn't just about allocating more budget. It also demands organizational change. Traditional mindsets and processes that keep Sales and Marketing in separate silos simply won't cut it.

For ABM to be effective, Sales and Marketing need to collaborate closely from the very beginning and throughout the entire process. Without this synergy, it's not genuine ABM.