Account based Marketing ABM is transformative to many B2B marketing strategies but is also the bugbear of many SaaS companies as they explore their marketing options. But as it continues to gain popularity, why does it seem like such a simple yet simple question has never found an answer? This blog dives into this dilemma, unravels the confusion behind ABM, and offers insight for SaaS companies that wish to implement this strategy successfully.
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What Is Account-Based Marketing, Exactly?
Account-based Marketing (ABM) is a highly focused approach that includes coordinated efforts between sales and marketing teams to target specific high-value accounts for engagement and conversion rather than a more generalized strategy to generate leads. It is different from traditional marketing methods that generate a large quantity of leads.
But this definition, simple on the surface, splinters into many interpretations in the field. Some critique ABM as just a way to target accounts, others see ABM as a way of doing business that fundamentally changes the go-to-market motion.
Why Does Everyone Define Account-Based Marketing Differently?
These numerous factors have led to the ambiguity surrounding Account Based Marketing definitions:
Platform Diversity: New technology continually shapes what is possible within an ABM framework and, as this technology has evolved, the platforms around ABM have begun to be diverse.
Industry Nuances: ABM definitions vary from SaaS to manufacturing to professional services to construction, so your industry nuances will affect the definition.
Scale Variations: ABM at the enterprise level and ABM at the Startup (or Mid Market) Level couldn’t be more different
Hybrid Approaches: Many organizations combine ABM with inbound marketing or other approaches, resulting in hybrid models that aren’t suited to simple classification.
How Does Account-Based Marketing Differ in the SaaS Context?
When applied to SaaS businesses, ABM has its characteristics that make its definition even less straightforward. SaaS has its own sets of considerations due to the subscription-based model, product-led growth strategies, and complex buying committees:
Recurring Revenue Focus
SaaS companies are different in that they need to look at the lifetime value of accounts and the possibility of expanding further in comparison to one-time purchase businesses. ABM in SaaS is not only for winning new accounts but expanding and retaining existing ones.
Product-Usage Data Leverage
However, by the nature of their work, SaaS businesses have access to granular data on how their products are being used, which can help inform an ABM strategy. It creates a feedback loop between product engagement and marketing efforts that you don’t get in other industries.
Complex Buying Committees
Enterprise SaaS buying decisions often involve many stakeholders with diverse concerns. All of this means that you need to layer the complexity of ABM in SaaS: targeting different personas in your account.
Focus on the Trial-to-Paid conversion
Most SaaS companies have a free trial or freemium model, creating a pivotal role in conversions from trial to paid subscription for ABM.
These unique characteristics ensure Account Marketing for SaaS includes product-led growth, customer success alignment, and usage-based targeting that other ABM definitions from other industries do not include.
When Did Account-Based Marketing Become So Confusing?
The confusion about ABM has a historical basis. ITSMA coined the term Account Based Marketing in the early 2000s as a methodology to target and sell into large enterprise accounts. But when marketing technology started advancing through the 2010s — especially with the emergence of marketing automation and predictive analytics — ABM started to change.
The timeline of ABM’s evolution shows several key inflection points:
- Early ABM focused on high personalization & manual efforts on a handful of strategic accounts (2003-2010)
- 2013 to 2015: ABM technologies emerge, allowing for scaling beyond a few accounts, as terms like “ABM Lite” and “Programmatic ABM” are introduced.
- 2016-2018: With ABM integration with MAPs, the lines started getting blurred for what is inbound marketing and what is ABM.
- 2019 to Present: The sheer number of ABM platforms proliferating and the “ABM Cleaning” of other martech has created further definitional fuzziness.
What that has led us to is a range of Account Based Marketing definitions, rather than a uniform one.
Who Should Own Account-Based Marketing in a SaaS Organization?
Adding to the difficulty of defining ABM is the ownership question. Marketing leads ABM initiatives at some organizations, while other organizations put sales in the driver’s seat. More and more, we’re seeing collaborative approaches:
- Marketing-Led ABM: Concentrates on producing tailored content and experiences for target accounts.
- Sales-Led ABM: Focuses on sales intelligence and outbound prospecting to key accounts.
- Revenue Team ABM: Aligns sales, marketing, and customer success around the same account-based objectives.
These differences in ownership structures have an impact on how companies define Account Based Marketing and which activities they classify as ABM..
Where Does Account-Based Marketing Fit in the Modern SaaS GTM Strategy?
The definition chasm deepens when considering the placement of ABM within the larger go-to-market strategy. Most SaaS companies take one of a few approaches:
Account-Based Marketing as an Additive Channel
A few businesses consider Account Based Marketing to be, the channel in a multi-channel strategy, whether it be along content promotion, events, or digital advertising.
ABM as the Primary GTM Strategy
Some companies elevate ABM to serve as the focal point of their entire go-to-market strategy, with all marketing and sales activities being aligned along account-based lines.
Tiered ABM Approaches
Many SaaS companies take a tiered approach, providing different ranges of account-based treatment for each segment — from the one-to-one approach for enterprise prospects to the one-to-few or one-to-many approaches for mid-market and SMB accounts.
That strategic positioning plays a part in what you have as your working definition of an ABM and the extent to which it’s important to the way your organization operates.
Why Can’t We Just Agree on an Account-Based Marketing Framework?
Despite many initiatives, ATPs do not have a high level of acceptance as the standard for Account Based Marketing. There are several reasons it’s still an uphill battle:
- Diversity in Business Models: Different types of SaaS business models (self-serve vs. sales-led, vertical SaaS vs. horizontal platforms) require different types of ABM frameworks.
- Rapid Evolution: The field is also evolving too fast for standardization to ever take hold.
- Measurement Variations: ABM is measured differently by companies, from pipeline influence to account engagement to closed revenue.
- Combining Methodologies: Many organizations use a mix of elements from various ABM methodologies instead of following a single framework.
These elements pose challenges in devising a universal framework applicable to the varied terrain of SaaS.
How Do You Implement Account-Based Marketing Without a Clear Definition?
Whatever the definitional problems, SaaS companies have to do ABM. The secret is to emphasize underlying principles instead of strict definitions:
Start with Account Selection
Whatever your interpretation of ABM, the key to developing your strategy is identifying high-value target accounts to acquire based on fit, intent, and potential value.
Align Sales and Marketing
All successful Account-based Marketing aligns sales and marketing teams to common account objectives and coordinated outreach.
Personalize at Scale
Create systems for providing tailored experiences to priority accounts at scale, in a way that balances personalization and scalability.
Measure Account Engagement
Measure target account engagement across channels rather than focusing on lead-based metrics.
Continuously Refine
Re-mentalize account lists, engagement games, and other related metrics based on performance data.
As long as people agree on these principles, SaaS companies can develop and execute compelling ABM programs despite differing opinions on what ABM is.
What Are the Common Account-Based Marketing Misconceptions in SaaS?
This definitional confusion has led to several misconceptions about Account Based Marketing in the SaaS context:
Misconception 1: ABM Is Only for Enterprise Sales
Although ABM started in enterprise sales, ABM tools today allow account-based plays for companies targeting the mid-market and even SMB segments.
Misconceptions 2: ABM Kills Inbound Marketing
In reality, successful SaaS companies treat ABM as a complement to the inbound strategies, not a replacement.
Misconceptions 3: ABM Will Require Huge Resources
Resource-limited teams can still effectively implement account-based strategies using scaled ABM approaches.
Misconception No. 4: AMB is All About Technology
ABM is an approach that is more about alignment, process, and content than a specific platform, although technology can underpin ABM at scale.
Misconceptions 5: ABM RESULTS ARE QUICK
These types of programs in Account Marketing are known to have a delayed effect because, for complex SaaS sales, it usually takes about 6–12 months for any major results to be reflected.
Clearing these misconceptions helps to set more realistic expectations about ABM implementation.
How Will Account-Based Marketing Evolve for SaaS in the Future?
Moving forward, a few trends may contribute to the ongoing evolution of ABM definitions in SaaS:
Integrating with Product-Led Growth
More than ever, usage data will drive both account targeting and engagement, as the lines between Account Based Marketing and product-led growth strategies blur.
AI-Driven Personalization
AI will power far deeper personalization at scale — completely transforming what ABM programs are capable of.
Revenue Operations Alignment
The growth of RevOps means that ABM will be integrated into wider revenue generation strategies, rather than considered a separate marketing tactic.
Account-Based Experience (ABX)
While ABM primarily focuses on marketing touchpoints, the progression toward ABX recognizes that coordinated experiences matter at all stages of the customer journey.
Expanded Success Metrics
Extensive metrics measuring account relationship health beyond pipeline and revenue will evolve from these definitions.
These trends support the hypothesis that instead of becoming increasingly uniform, Account Based Marketing definitions are likely to diversify, as the methodology develops.
Conclusion: Embracing the Fluidity of Account-Based Marketing
Maybe the lack of a precise definition of Account Based Marketing isn’t an issue to solve but a characteristic to embrace. As ABM can be very fluid, it evolves with the changing nature of the Software as a Service business, as well as changing market conditions, technologies, and methodologies.
Instead of forcing a square peg inside a round hole with a rigid definition, SaaS companies need to formulate an ABM approach that addresses business pains, aligns with their go-to-market strategy, and provides a measurable impact on revenue goals.
The best Account Marketing programs aren’t those that fit a textbook definition — they are the ones that iteratively adjust based on account signals, performance data, and net new opportunities. This paradigm shift opens the door for SaaS companies to escape definitional quibbles and get down to the nitty-gritty of what ABM is really worth: Building authentic relationships with high-value accounts that drive sustainable growth.
As Account Marketing changes over time, its definition will probably continue to shift looking a different things —and not necessarily in a bad way. What will set apart the companies that excel with ABM is the ability to make the principles of ABM work for their business, instead of squeezing their strategy into a one-size-fits-all ABM mold.
So maybe the better question is not “What is Account Based Marketing? but instead “What Account-Based Marketing mean for our SaaS business? By pondering that question, you’ll create an ABM strategy that delivers results — and never mind how it compares to anyone else’s definition.
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