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?


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


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


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

SOLUTIONEXPLORE

SELECTION CHOOSE

Customer Lifecycle

DELIVER INITIATE

DEVELOPPARTICIPATE

RETAIN ACTUALIZE

GROW ADVOCATE


ABM Requires Focus on Making Sales More Productive

(customer service calls)

Leverage/ Delegate

(expense reports, travel)

Minimize

(prospecting calls, e-mails)

MaximizeCore SellingActivities

Non-CoreActivities

Internal Direct Engagement

(finding contacts, research)

Streamline


The SiriusDecisions Sales Productivity Framework


ABM Requires That Marketing Start With Customer Needs


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

9

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.


The ABM Portfolio: Find Your Perfect Balance



Named Account

Industry/Segment Account

Broad-Based Demand

Sale

s M

od

el

Large AccountM

ark

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M

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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



Named Account

Industry/Segment Account

Broad-Based Demand

How

Mu

ch

Focu

s?

Large AccountM

ark

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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


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 nextSource: SiriusDecisions 2015 State of Account-Based Marketing Survey


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


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



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.Source: SiriusDecisions 2015 State of Account-Based Marketing Survey


Does ABM Help Sales and Marketing Alignment?

Of companies with ABM in place:None said they are “not aligned at all” with sales34 percent said they are “tightly aligned”57 percent said they are “somewhat or moderately” aligned with sales10 percent said they are “somewhat not aligned” with salesSource: SiriusDecisions 2015 State of Account-Based Marketing Survey

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


Top Three ABM Pitfalls

1. No sales buy-in for updated marketing role

2. Overpromising and under-resourcing

3. Not building an ABM ecosystem


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…”


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

Insights and

Technology

Buyer and

Customer Needs

Business Goals

ABM


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

Where does marketing get account insights for ABM today?



Find out what they need to know and deliver it

Marketers tell us they’re mainly asking sales to give them information about accounts




Try “give to get” strategy instead: Find out what sales wants to know and deliver it



Overpromising, Under-Resourcing: Skills Gap Is Critical

Do your marketers doing ABM have the skills they need to be successful?

53% 47%



Overpromising, Under-Resourcing: Set The Right Goals

If you believe ABM success is measured only on lead volume…Think again.ABM is about influence.


Prevent Overpromising: Report on The Right Measures

Time to Result Measurement

% who measure today

Long

term

# 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%


% 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%


% who measure today

Quick 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%



ABM Teams Have A Lot To Do But Not Much Help



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 Marketingand What’s Coming Next (hint: they’re related)


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



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



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 servicesSource: SiriusDecisions 2015 State of Account-Based Marketing Survey


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/advan

ced, etc.)

CustomerReference/ Advocacy

Customer Intelligence

Management

Buying Cycle Customer Lifecycle

Account Planning


Your New Hat

A Gift From Sales

Thank You!

@siriusdecisions@megheuer

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

Marketing

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