ABM: The Revolution Continues

1. Megan Heuer Vice President of Research ABM: The Revolution Continues

3. © 2016 SiriusDecisions. All Rights Reserved 3 What We’ll Cover Today • Findings from SiriusDecisions 2016 State of Account-Based Marketing (ABM) Study • Insights on the Future of ABM • Tips for Staying On Course With ABM Deployment • Questions

5. © 2016 SiriusDecisions. All Rights Reserved 5 2016 State of Account-Based Marketing: Demographics 200+ b-to-b companies participated in 2016 study •  60% less than $250 million annual revenue •  40% $251 million+ / 16% $2.1 Billion+Revenue size •  60% software •  28% services (professional, tech or information)Primary industries •  58% enterprise (1,000+ employees) •  35% mid-size (101 – 1,000 employees)Target customer size •  58% direct sales force •  18% inside salesSales channels

6. SiriusPerspective: © 2016 SiriusDecisions. All Rights Reserved 6 Types of ABM Deployed in 2016 vs. 2015 There’s no single type of ABM; companies can choose one or more types based on their target marketers and go-to-market model. Account-Based Models Large Account 1:1 Named Account 1:Few/Many Industry/Segment 1:Few/Many Customer Lifecycle Moderate or larger number of existing customers that receive differentiated outreach Customer Lifecycle 1:Few/Many one-to-one one-to-few/many 69%82% 22%18% 50%57% 62%75% 20162015

7. © 2016 SiriusDecisions. All Rights Reserved 7 ABM Race Is On: Seven Success Factors For 2016 What do ABM and sailboat racing have in common? To do them well, both require: 1.  Confidence 2.  Money 3.  Commitment 4.  Skills 5.  Technology/ Services 6.  Strategy 7.  Teamwork

9. © 2016 SiriusDecisions. All Rights Reserved 9 ABM in 2016: The Case For Smooth Sailing Ahead 87% 71% 27% Companies who said ABM is “extremely” or “very” important to overall marketing efforts in 2016. Companies investing between 11% and 30% of marketing budget in ABM (up from 19% in 2015) Companies with staff fully or partially dedicated to ABM (up from 68% in 2015) Confidence Commitment

10. SiriusPerspective: © 2016 SiriusDecisions. All Rights Reserved 10 Planned Overall ABM Investment – Next 12 Months Fully 73 percent of b-to-b companies say they’re investing more money in 2016 compared to their 2015 investment. 20% 52% 21% $ “About the same” “Greater than last year” “SIGNIFICANTLY greater than last year” Money

11. © 2016 SiriusDecisions. All Rights Reserved 11 Marketers Are Building ABM Capabilities Fast in 2016 Skills 62% of companies said their marketers have the skills they need to be successful with ABM + Up from 53% in 2015

12. © 2016 SiriusDecisions. All Rights Reserved 12 Technology Use For ABM Remains High In 2016 •  80% salesforce automation down from 81% •  74% marketing automation up from 67% •  62% account-based advertising up from 54% •  57% web analytics tools up from 46% •  52% web optimization/personalization up from 43% •  37% social media monitoring tools up from 33% •  27% use predictive analytics tools (no 2015 data) Marketers are Using Technology to Deliver and Scale ABM 2016 2015

13. © 2016 SiriusDecisions. All Rights Reserved 13 More Help Is On The Way: 2016 Technology Investment 58 percent of companies plan to invest in services or technology for ABM in 2016 • 68% Account-based advertising up from 54% • 35% Marketing automation platform down from 41% • 31% Sales force automation/CRM down from 32% • 31% Web analytics tools up from 29% • 31% Web site personalization down from 37% • 25% Predictive analytics tools up from 24% • 20% Customer intelligence mgmt/survey tools up from 17% • 20% Social media monitoring tools up from 15% Top Planned ABM Technology Investments in 2016 2016 2015

14. © 2016 SiriusDecisions. All Rights Reserved 14 More Help Is On The Way: 2016 Services Investment 58 percent of companies plan to invest in services or technology for ABM in 2016 •  44% Custom third-party account/contact info sources up from 32% •  37% Agency for ABM support (e.g., content, messaging) up from 23% •  30% Predictive analytics services (no 2015 data) •  28% Third-party content development up from 3% •  24% Third-party teleprospecting (no 2015 data) •  23% Third-party social media services up from 10% Top Planned 2016 ABM Services Investments

15. © 2016 SiriusDecisions. All Rights Reserved 15 Clear Goals In Place for ABM Success in 2016 Top 3 Goals Marketers Report for ABM 1.  Increased revenue/bookings 2.  Increased pipeline 3.  Higher quality leads Strategy (or part of it, anyway)

16. © 2016 SiriusDecisions. All Rights Reserved 16 ABM in 2016: Signs of Potential For Rough Seas? •  Commitment Will Companies Continue With ABM Long Enough to Create Results and Change Culture? •  Strategy Does Marketing Consider ABM The “Shiny New Object” Tactic and Not As Transformational? •  Teamwork Has Alignment With Sales Suffered In the Interest of Fast Deployment? ?

17. © 2016 SiriusDecisions. All Rights Reserved 17 ABM in 2016: Signs of Potential For Rough Seas? 42% 20% Companies who have had an ABM program in place for less than six months Same as 2015 Companies who say they have had a full program in place for more than a year Same as 2015 Strategy? Commitment? 68% Marketers who say they work with sales to define account goals and plans Down from 73% in 2015 Teamwork?

18. © 2016 SiriusDecisions. All Rights Reserved 18 Teamwork Is Essential And Requires Sales Partnership Good: Marketing and Sales In The Race For Growth Together Not So Good: Marketing Goes It Alone (And Ends Up In Trouble)

22. © 2016 SiriusDecisions. All Rights Reserved 22 Best News For ABM in 2016: Evolution of Measurement % of companies using metric to track ABM Top 10 ABM Metrics 2016 2015 Feedback on ABM from internal stakeholders 76% 34% Number of closed deals touched by marketing 66% 61% Number of leads touched by marketing 61% 42% Participation in marketing activities from ABM accounts, 61% 25% Number of new contacts identified for ABM accounts 58% 33% Response rates to marketing outreach from ABM accounts 57% 48% Number of leads identified by marketing in ABM accounts 55% (no change) Online activity from ABM accounts 53% 39% Events held for account-based efforts 53% (no 2015 data) Content developed for account-based efforts 53% (no 2015 data)

23. © 2016 SiriusDecisions. All Rights Reserved 23 ABM Programs Continue To Deliver Results In 2016 Feedback from internal stakeholders (e.g. sales, product) 44% Number of leads touched by marketing in ABM accounts 27% Number of closed deals touched by marketing in ABM accounts 25% Account-based marketing plans in place for target accounts 23% Online activity (e.g., web visits) from ABM accounts 22% Account planning process in place 20% Number of new contacts identified for ABM accounts 20% Account selection process in place 19% Events held for account-based efforts 18% Participation in marketing activities from ABM accounts 17% ABM Metric Percent of Companies Who Saw Improvement Top 10 ABM Metrics Where Companies Reported Improvement in 2016

24. Thank You! @megheuer @siriusdecisions www.siriusdecisions.com

ABM: The Revolution Continues

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ABM: The Revolution Continues