ABM Dictionary: The Terms You Need to Know
Account-based marketing, often known as ABM, is a focused marketing movement that has taken B2B companies by storm. Being able to target your marketing and sales campaigns to certain accounts is game-changing. But it can also be overwhelming.
That overwhelm can happen because of the deluge of ABM-specific terms and technology. That’s why we’re sharing definitions for the must-know ABM terms. Knowing these terms will help you do ABM like a pro.
First things first, what is ABM?
ABM is a B2B strategy that concentrates sales and marketing resources on a clearly defined set of target accounts.
Unlike broad-based marketing, or mass marketing, ABM focuses on selling and marketing at the account level, rather than at the lead level. ABM empowers B2B companies to engage and convert specific accounts that are of the most importance to their business.
Because ABM concentrates efforts on a defined set of accounts, you can use it to create personalized campaigns and engagement strategies that are more likely to drive sales.
Account Tiering - Account tiering refers to the process of prioritizing certain accounts based on information you’ve collected. For example, a Tier 1 account is one that perfectly fits your Ideal Customer Profile (ICP). You may dedicate more sales and marketing resources to this segment of accounts.
Average Contract Value (ACV) - The Average Contract Value (ACV) is an average amount of spend that contracts result in. Your ACV can help you determine if you’re reaching your sales goals.
Behavioral Data - Behavioral Data is information that allows you to group individuals or companies into different segments based on behavior. This Behavioral Data includes information such as time spent on site, pages browsed, search terms, and number of assets downloaded. ABM platforms often surface Behavioral Data as signals of buying intent.
Broad-Based Marketing - Broad-based marketing, sometimes known as mass marketing, is when marketers create campaigns for a broad audience, rather than focusing on a targeted one.
Buying Journey - The Buying Journey, or Buyer’s Journey, is the process a potential buyer goes through as they make a purchase. It often includes a number of stages, such as an awareness stage when they know about the product, a consideration stage when they look into a product, and a decision stage when they decide to purchase the product.
Conversational ABM - Conversational ABM allows sales reps to instantly meet with target accounts when they arrive on their website. Real-time website conversations help sales teams forge new relationships and move deals through the sales cycle. This is an important piece of an end-to-end ABM strategy.
Cookie-Based Targeting - Cookie Targeting uses data to target groups based on behavior. For example, if someone visits your website, you can then serve up ads or additional information to this group.
Ideal Customer Profile (ICP) - Your Ideal Customer Profile (ICP) is a description of the company that’s a good fit for what you’re offering. Any company that fits your ICP is well-qualified and worthy of a sales conversation.
Intent Data - Intent Data is information collected about someone’s online activity. Intent Data is often used to build targeted account lists and personalize campaigns.
Firmographic Data - Firmographic Data is a set of characteristics that allows you to group companies into different segments. Firmographic data includes information such as company industry and sub-industry, company size, location, age of the organization, size of the department, and revenue numbers. You can connect with ABM and Data Enrichment tools to reveal firmographic data when a visitor arrives on your site.
Fuzzy Matching - Fuzzy matching technology allows you to try and match a website visitor to a target account based on a reveal IP lookup.
Marketing Funnel - A marketing funnel is a model of your customer’s journey with you. Along the way, Website Visitors will become Leads, which can become Opportunities and then Customers. At each stage of the marketing funnel, you’ll offer different types of communication and information.
Multichannel Campaigns - A multichannel campaign uses several marketing channels to communicate with prospects. For example, a multichannel campaign might use a combination of online (email, social media, advertising, etc.) and offline efforts (events, direct mail, etc.) to reach the intended audience.
Salesforce Accounts - A Salesforce Account is a business or organization within your CRM. A Salesforce Account will show you key stakeholders, past contacts, and other information that will help you personalize your sales strategy. There are two types of accounts. Business accounts store information about companies. Person accounts store information about individual people.
Salesforce Contacts - A Salesforce Contact is anyone you do business with saved in Salesforce. You can keep a database of your Contacts and include information about their accounts, behavior, and company.
Salesforce Opportunities - A Salesforce Opportunity is a deal that’s in progress. Opportunity records track details about deals, including which accounts they’re for, who the players are, and the amount of potential sales. If your organization uses leads, an opportunity is created when a lead is converted. Opportunities can also be created directly for accounts you’re working.
Target Accounts - Target Accounts are those that you’ve clearly defined as important in your ABM campaigns. Once you’ve defined your Target Accounts, you can create personalized campaigns that are more likely to convert. It's best if your Target Account lists live in Salesforce, which is the source of truth for all of your customer data.
Target Account Selling - Target Account Selling is when you create a sales strategy specifically around target accounts. Rather than sell to everyone, a salesperson would work on specific accounts. This term is often used interchangeably with Account-Based Marketing.
Total Addressable Market (TAM) - Total Addressable Market is a term used to describe the potential opportunity for a product. By counting the amount of total potential customers in a market, you’ll be able to calculate the TAM for your products and services.
There you have it– a dictionary of terms to help you understand ABM. By knowing these terms, you’ll be well on your way to rolling out an effective, end-to-end ABM strategy. After all, ABM is a proven, focused strategy that will help your company bring in more revenue.
If you’re a B2B company that wants to improve your ABM sales strategy, it’s time to try Conversational ABM. Read this book to learn the 6 key Conversational ABM plays you can run to engage and convert target accounts ⬇️