Account-Based Marketing: Welcome to the New Reality in B2B

Account-Based Marketing: Welcome to the New Reality

Megan Heuer

Vice President and Group Director

30 April 2015

© 2015 SiriusDecisions. All Rights Reserved

2

Before Account-

Based

Marketing

After

Account-Based

Marketing

Which Shirt

Would Your Sales Team

Choose?


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What We’ll Cover Today

• What You Need to Know: The Basics Of ABM

• What We Heard: 2015 State of Account-Based Marketing

• Don’t Try This At Home: How To Avoid ABM Mistakes

• New Tools of Marketing: How to Scale ABM

• Checking The Crystal Ball: What’s Next for ABM

What You Need to Know: The Basics of ABM


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Large Account

• Very small number of large existing or

targeted accounts

Named Account

• Moderate or large number of defined

existing or targeted accounts

Customer Lifecycle

• Moderate or large number of existing

customers that receive differentiated

outreach

Industry/Segment

• Any number of new or existing accounts in

the same vertical or other specific segment

Definitions: Four Account-Based Approaches

Account-Based Models


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ABM Requires Focus on Selling and Non-Selling Goals

Opportunity Goals:

Where will growth com from

in target accounts?

Relationship Goals:

How will we ensure

customer gets value?

Buying Cycle

EDUCATION NEED

SOLUTION EXPLORE

SELECTION CHOOSE

Customer Lifecycle

DELIVER INITIATE

DEVELOP PARTICIPATE

RETAIN ACTUALIZE

GROW ADVOCATE


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ABM Requires Focus on Making Sales More Productive

(customer service calls)

Leverage/

Delegate

(expense reports, travel)

Minimize

(prospecting calls, e-mails)

Maximize Core Selling

Activities

Non-Core

Activities

Internal Direct Engagement

(finding contacts, research)

Streamline


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The SiriusDecisions Sales Productivity Framework


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ABM Requires That Marketing Start With Customer Needs


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We Can Do Better: ABM and The New Reality for Marketing

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Marketing must align its efforts to the accounts and actions most likely to deliver growth and improve sales productivity.

This is the promise of account-based marketing in 2015.


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The ABM Portfolio: Find Your Perfect Balance


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Named

Account Industry/Segment

Account

Broad-Based

Demand

Sale

s M

od

el

Large

Account

Mark

eti

ng

Mo

del

Target account

list (1:Few)

Target account

list in a specific

market/industry

(1:Few)

Non-named

territory focus;

Transactional

models

Small number

of high-value

accounts (1:1)

Customer

Lifecycle

Customer

success team;

All relationship

goals


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Named

Account Industry/Segment

Account

Broad-Based

Demand

Ho

w M

uch

Fo

cu

s?

Large

Account

Mark

eti

ng

Mo

del

What share of sales revenue goals will come from

one or more of these account-based models?

How much marketing effort goes to supporting

these accounts?

What share of revenue is expected from

non-named accounts?

How much marketing is invested in

reaching non-named accounts?

Customer

Lifecycle

What is the goal for retention and growth from

existing customers?

How much marketing supports customer

engagement, loyalty and advocacy?

How much sales time goes to account support?

The right balance of ABM is a simple

math problem:

Align marketing investment to your

growth strategy and the accounts

expected to deliver it

What We Heard: 2015 State of Account-Based Marketing


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2015 State of Account-Based Marketing Study Participants

• Company sizes (by annual revenue in US $)

• 45 percent less than $100 million

• 18 percent between $101 million and $1 billion

• 36 percent more than $1.1 billion

• Customer types (i.e., who respondents sell to)

• 75 percent enterprise (more than 1,000 employees)

• 21 percent midmarket (101 to 1,000 employees)

• 11 percent small (100 or fewer employees)

• Sales models

• 82 percent sell mainly via a direct sales force

• 13 percent via inside sales

• 4 percent via third-party channels

• 100+ B-to-B

companies

• Detailed look

at ABM today

and what’s

coming next Source: SiriusDecisions 2015 State of Account-Based Marketing Survey


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Account-Based Marketing Is Essential to B-to-B in 2015

92 percent of b-to-b companies said

account-based marketing is

“extremely” or “very” important to

their overall marketing efforts

Source: SiriusDecisions 2015 State of Account-Based Marketing Survey


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Study Says: ABM Is Not One-Size Fits All in 2015

Types of ABM deployed today:

• 77% Named account

• 58% Large account

• 48% Vertical (industry)-based account

• 39% Segment (e.g., role)-based account

• 17% Customer lifecycle



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ABM Is Still New For Most Companies…But Not All

38 percent have had a pilot in place for

less than 6 months…

14 percent have had a pilot in place for

more than 6 months…

26 percent have had a full program in in

place for less than one year…

20 percent have had a full program in

place for more than a year

They’ve learned a lot and are seeing

results.



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Does ABM Help Sales and Marketing Alignment?

Of companies with ABM in place:

None said they are “not aligned at all” with sales

34 percent said they are “tightly aligned”

57 percent said they are “somewhat or moderately”

aligned with sales

10 percent said they are “somewhat not aligned”

with sales


Don’t Try This At Home: Pitfalls to Avoid in Account-Based Marketing


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Top Three ABM Pitfalls

1. No sales buy-in for

updated marketing role

2. Overpromising and

under-resourcing

3. Not building an ABM

ecosystem


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Sales Buy-In: Be Careful What You Wish For

Marketing:

“We’re launching a new ABM

program and we’d like to

include your accounts. How

can I help you?”

Sales:

“Now that you ask…”


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Great ABM Is Customer-Focused, Insight-Led, Tech-Enabled

Insights and Technology

Buyer and Customer

Needs

Business Goals

ABM


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Sales Buy-In: What’s The First Step To A New Image?

Where does

marketing get

account

insights for

ABM today?


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Find out what they need to

know and deliver it

Marketers tell us they’re mainly asking sales to give

them information about accounts



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Try “give to get” strategy instead:

Find out what sales wants to know and deliver it



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Overpromising, Under-Resourcing: Skills Gap Is Critical

Do your

marketers

doing ABM

have the

skills they

need to be

successful

?

53% 47%



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Overpromising, Under-Resourcing: Set The Right Goals

If you believe ABM

success is measured

only on lead volume…

Think again.

ABM is about influence.


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Prevent Overpromising: Report on The Right Measures

Time to

Result Measurement

% who measure

today

Lo

ng

te

rm

# of closed deals touched by mktg in ABM accounts 61%

$ value of revenue sourced by mktg from ABM accounts 34%

$ value of revenue touched by mktg from ABM accounts 29%

Funnel velocity for ABM accounts vs. non-ABM accounts 20%

Close rate for ABM accounts vs. non-ABM accounts 19%

Customer loyalty/Net Promoter Score improvement 8%

ASP (avg sales price) for ABM accounts vs. non-ABM 5%

Time to

Result Measurement

% who measure

today

Mid

Term

# of leads identified by marketing in ABM accounts 58%

# of leads touched by marketing in ABM accounts 46%

$ value of pipeline identified/sourced by marketing from

ABM accounts 46%

Customer retention and/or upsell 31%

Time to

Result Measurement

% who measure

today

Qu

ick

Win

Response rates to marketing from ABM accounts 47%

Online activity from ABM accounts 39%

Number of new contacts in ABM accounts 36%

Internal stakeholder feedback (e.g. sales, product) 36%

Participation in all mktg activity from ABM accounts 25%



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ABM Teams Have A Lot To Do But Not Much Help



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Build An ABM Ecosystem (That Includes Other Marketers)

70 percent have staff fully or

partially dedicated to ABM

Only 46 percent of ABM teams

are working with other marketing

teams to get help

Low-cost productivity boost:

Leverage existing efforts where

they map to ABM needs


New Tools of Marketing and A Look in The Crystal Ball: How To Scale Account-Based Marketing and What’s Coming Next (hint: they’re related)


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Today’s Toolkit: An Underleveraged Asset for ABM

Some of the technologies used by

account-based marketers today:

• 80%: Salesforce automation/CRM

• 66%: Marketing automation platform

• 56%: Account-based advertising and re-targeting

• 45%: Web analytics tools

• 34%: Social media monitoring



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What’s Next: Better Tech-Enablement of ABM for Scale

61 percent of

companies doing

ABM said they plan to

invest in technology in

the next 12 months



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Planned Technology Investment Spans Wider Range

Where 2015 investment is planned for ABM:

• 53%: Account-based advertising

• 45%: Marketing automation platform

• 34%: Sales force automation

• 32%: Website personalization

• 32%: Web analytics

• Plus many other technologies and services



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Technology Infrastructure for Account-Based Marketing

Social Media

Marketing & Sales

Force Automation

Display Targeting

and Retargeting Data

services

Customer

Success

Mgmt.

Progressive Profiling &

Dynamic Display/CMS

Analytics

(Web, reporting,

predictive/advance

d, etc.)

Customer

Reference/

Advocacy

Customer

Intelligence

Management

Buying Cycle Customer Lifecycle

Account Planning


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Your New Hat

A Gift From Sales

Thank You! @siriusdecisions @megheuer

Account-Based Marketing: Welcome to the New Reality in B2B

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