Metrics and Insights Behind the ABM Revolution

ACCOUNT BASED MARKETING

METRICS AND INSIGHTS BEHIND THE ABM REVOLUTION

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JESSICA FEWLESSDEMANDBASE

CRAIG ROSENBERGTOPO

© 2016 TOPO. All rights reserved.

THE SPEAKERS

Craig RosenbergChief Analyst and Co-Founder | TOPO@funnelholic

Jessica FewlessSenior Director of Field & Partner Marketing | Demandbase@JFewlessB2B


THE EVOLUTION OF ABM

…INTERESTING, MAYBE NEXT YEAR.2015

…TELL ME HOW!2016

…WHAT IS THAT EXACTLY?2014

2017 …TELL ME HOW TO DO IT BETTER!

We’re an Analyst Firm that Helps 100s of Demand Generation, Sales Development, and Sales Organizations Grow Revenues in a Scalable Manner.


3 WAYS OF DELIVERING SCALABLE REVENUE GROWTH

A customized “owner’s manual” for various salesor marketing functions

Analyst support for big issues like process, organizationand technology

Detailed, engaging training on playbooks and best practices

PLAYBOOKS1 ADVISORY2 TRAINING3


AGENDA

1. INTRO

2. RESEARCH METHODOLOGY

3. THE STATE OF ABM

4. THE FINDINGS

5. FINAL TAKEAWAYS


WE TALKED TO 50 MARKETERS ABOUT THEIR ABM PROGRAMS

3Q16: Data collection of current ABM programsHIGHLIGHTS§ 60 minute, in-depth interviews§ 50 CMOs, VPs and Directors of

Marketing and Demand Gen § All stages of maturity§ Primarily high tech but with mix

of fin-service, healthcare, manufacturing, telecom, energy, and publishing

REVENUE CLASSIFICATION:SIZE REVENUE

RANGEAVERAGE ($M)

REPONSES(%)

Large > $501M $11.4B 20%

Growth $51M - $500M $171M 42%

Early $0 - $50M $22M 38%

TIME IN ABM % RESPONSES

>2yr 22%

1yr-2yr 24%

<1 year 40%

Inception 14%

MATURITY:


THE STATE OF ABM:

ABM OUTPERFORMS TRADITIONAL MARKETING METHODS


ABM OUTPERFORMS TRADITIONAL METHODS

3.98

4

4.02

4.14

4.2

4.31

4.64

1 2 3 4 5

Customer Retention Rate

Initial Contract Value

Close Rate

Return on Sales & Mktg. Investment

Upsell/Cross-sell

Overall LTV

Alignment Between Sales & Marketing

ABM provides much greater benefit than traditional approach

ABM and traditional are same

Traditional approach benefit is much greater

Benefits of ABM vs. Traditional Marketing Approach


ABM INCREASES ACV BY 171%

$71,941

$195,294

$0

$40,000

$80,000

$120,000

$160,000

$200,000

Pre-ABM ACV Post ABM ACV

Average Annual Contract Value (ACV)

171% lift


ABM DELIVERS DEAL VELOCITY AND EFFICIENCY

5%

5%

6%

11%

17%

27%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Brand Preference

Improved Perception of Marketing

Target Account Engagement

Higher ACV / Mktg. ROI

Sales / Marketing Efficiency

Accelerate Pipeline / Deal Velocity

Organizational Focus

% of Mentions

Benefits of ABM


THERE ARE CHALLENGES – BUT ALL ARE SOLVABLE

7%

11%

11%

12%

14%

21%

25%

0% 5% 10% 15% 20% 25% 30%

Developing Content

Technology

Lack of ABM Metrics / Results

Executive and Organizational Buy-in

Target List/Account Selection

Execution: Process, Data, Orchestration

Sales & Marketing Alignment

Key ABM Challenges


LEARNING #1:

THE IDEAL CUSTOMER PROFILE (ICP) IS THE FOUNDATION OF ABM


DEFINING THE ICP IS CORE TO ABM STRATEGY

4.1

4.2

4.2

4.3

4.3

4.4

4.6

3.8 3.9 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7

Aligning Account Teams

Using Account-centric Metrics

Personalizing Offers and Content

Developing Alignment Strategy

Orchestrating Campaigns

Maintaining Account Data

Targeting the Right Accounts

Observed / Expected Value of ABM Strategies


DEFINE THE ICP AND CREATE A TARGET ACCOUNT LIST

The Ideal Customer Profile defines the accounts that are most likely to buy from you at a viable economic threshold (e.g., CAC and LTV)

DATA ICP TARGET LISTATTRIBUTE DEFINITION

Ad Spend >$50M/yearadspend

Geos NorthAmerica,EMEA,APAC

Industries • FinancialServices• Automotive• Travel• Retail

Behaviors • $15M/yeartechspend

• In-houseprogrammaticfunction

• 25+campaigns

Complete CRM data (target accounts and key personas) and regular data cleanse and update

3. QUALITATIVE(e.g. sales rep feedback)

2. INTERNAL(e.g. closed-won by segment)

1. EXTERNAL(e.g. predictive analytics)


LEARNING #2:

ORCHESTRATION IS NOTAS SCARY AS YOU THINK


ORCHESTRATION IS A CHALLENGE BUT IS SOLVABLE

7%

11%

11%

12%

14%

21%

25%

0% 5% 10% 15% 20% 25% 30%

Developing Content

Technology

Lack of ABM Metrics/Results

Executive and Organizational Buy-in

Target List/Account Selection

Execution: Process, Data, Orchestration

Sales & Marketing Alignment

Key ABM Challenges


ABADVERTISING

DIGITALMARKETING

PERSONALIZATION

DIRECTMAIL

MARKETING “AIR-COVER” LEADS

EXECOUTREACH

SDROUTREACH

OUTREACH

ACCOUNTSIDENTIFIED

ACCOUNTRESEARCH

CAMPAIGNCREATED

CAMPAIGN CREATED

HIGH-VALUECALL TO ACTION

MEETING SET

START WITH MARKETING - SDR COLLABORATION


LEARNING #3:

ABM IS ABOUT CUSTOMERSAS WELL AS PROSPECTS


ABM IS ABOUT CUSTOMERS AS WELL AS PROSPECTS

73%

63%

35%

24%

33%

58%

3% 4% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Early (< $50M) Growth ( $50-$500M) Large ( > $500M)

Prospects Customers Partners

Relationship Focus by Respondent Company Size


EVEN NEW ABM PROGRAMS FOCUS ON CURRENT CUSTOMERS

32%

71%

63%60%

26%32%

8%3% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Inception <1yr. 1yr - 2yr.

Prospects Customers Partners

Relationship Focus by Respondent Company Size


IDENTIFY KEY ACCOUNT STAKEHOLDERS

USE CASE STORY DEVELOPED

EXEC MAILER: HIGHLIGHT USE CASE

ADVERTISING: USE CASE OFFER

ACCOUNT-ONLY WEBINAR: USE CASE

WEBSITE OFFER: USE CASE

REFERRALS, OFFER TO DISCUSS USE CASE

ON-SITE EXECUTIVE WORKSHOP ON USE CASE

LUNCHES, OFF-SITE ACCOUNT-ONLY EVENTS

USE CASE DISCUSSION (VS DEMO)

ABM UPSELL/CROSS-SELL CAMPAIGNS CONVERT

CALL TO ACTION

ACCOUNT RESEARCH

CAMPAIGN CREATED

DIRECT MAIL

AB ADVERTISING

DIGITAL MARKETING

PERSONALIZATION

SDR OUTREACH

WORKSHOP

LIVE EVENTS


LEARNING #4:

THE MQL IS NOT MARKETING’SULTIMATE MILESTONE


MATURE ABM ORGANIZATIONS FOCUS ON DOWNSTREAM METRICS LIKE PIPELINE

3%

5%

5%

7%

8%

8%

8%

12%

16%

28%

0% 5% 10% 15% 20% 25% 30%

LTV

Deal Velocity

Revenue (Growth, Spend, Return)

MQL, MQA

SAL, SQL

Close/Win Rate

ACV / Deal Size

Account Coverage

Engagement

Pipeline

% of Mentions

ABM Metrics Focus


CONTACT MQL SDR MEETING OPPORTUNITY WON

KEY ABM METRICS§ Target Account Pipeline§ Deal Velocity§ Win Rates

MQA

SHIFT IN FOCUS

ABM MARKETERS SHOULD BE MEASURED ON THE METRICS THAT MATTER

§ Average Contract Value (ACV)§ Lifetime Value (LTV)


LEARNING #5:

BUILD THE TECH STACKFROM THE GROUND UP


THE TECH STACK IS BUILT FROM THE GROUND UP

4.5

4.3

4.2

4.2

3.9

3.8

3.7

3.7

3.6

3.6

0 1 1 2 2 3 3 4 4 5 5

CRM

Marketing Automation

Target List Data Automation

ABM Analytics and Attribution

ABM Management

Website Personalization

Account-based Advertising

Content Personalization

Predictive Analytics

Sales Communication Apps

Value to ABM

Start with the foundation

and build-up


LEARNING #6:

ABM SUCCESS TAKES TIME(BUT NOT THAT MUCH)


ABM PROFICIENCY GROWS OVER TIME

1.6

2.6

3.3

3.7

0

0.5

1

1.5

2

2.5

3

3.5

4

Inception < 1yr. 1yr. - 2yr. > 2yr.

1 = Needs Improvement 3 = Meeting Objectives 5 = Excelling

Average Performance by ABM Maturity


82PERCENT

BUT IT DOESN’T TAKE THAT LONG

23PERCENT

of organizations executing ABM for 1 year + are meeting or exceeding their objectives

of organizations are meeting their objectives in less than a year


THE STATE OF ABM: IT WORKS

1. Starts with the ICP

2. Orchestration isn’t as Hard as you Think

3. Customer Expansion is a Successful Use Case

4. Measure ABM Programs by Revenue Metrics not Marketing Metrics

5. ABM Takes Time But not as Much as you Think


KEY TAKEAWAYS FOR 2017

ABM§ is outperforming traditional marketing§ is for targeting prospects and customers§ is driving positive organizational change§ results improve with time


Q&A


THANK YOU