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

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https://www.demandbase.com/webinar/virtual-marketing-innovation-summit-b2b/

Megan Heuer, VP & Group Director, SiriusDecisions

It’s the classic disconnect: While Sales talks accounts and opportunities, Marketing talks segments and solutions. Smart marketers know the secret to fixing this: Account-Based Marketing (ABM). Now a major trend in B2B, ABM aligns marketing efforts with sales goals and customer needs. In this session, we’ll share the types of ABM and how they fit into a best-in-class B2B marketing portfolio. We’ll also explain the toolkit that enables a scalable approach to ABM and improves alignment with Sales. Finally, we’ll share examples of success along with findings from our survey about the current state of ABM in B2B.

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

  1. 1. Account-Based Marketing: Welcome to the New Reality Megan Heuer Vice President and Group Director 30 April 2015
  2. 2. © 2015 SiriusDecisions. All Rights Reserved 2 Before Account- Based Marketing After Account-Based Marketing Which Shirt Would Your Sales Team Choose?
  3. 3. © 2015 SiriusDecisions. All Rights Reserved 3 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
  4. 4. What You Need to Know: The Basics of ABM
  5. 5. © 2015 SiriusDecisions. All Rights Reserved 5 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
  6. 6. © 2015 SiriusDecisions. All Rights Reserved 6 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
  7. 7. © 2015 SiriusDecisions. All Rights Reserved 7 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 © 2015 SiriusDecisions. All Rights Reserved 7 The SiriusDecisions Sales Productivity Framework
  8. 8. © 2015 SiriusDecisions. All Rights Reserved 8 ABM Requires That Marketing Start With Customer Needs
  9. 9. © 2015 SiriusDecisions. All Rights Reserved 9 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.
  10. 10. © 2015 SiriusDecisions. All Rights Reserved 10 The ABM Portfolio: Find Your Perfect Balance
  11. 11. © 2015 SiriusDecisions. All Rights Reserved 11 The ABM Portfolio: Find Your Perfect Balance Named Account Industry/Segment Account Broad-Based Demand SalesModel Large Account Marketing Model 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
  12. 12. © 2015 SiriusDecisions. All Rights Reserved 12 The ABM Portfolio: Find Your Perfect Balance Named Account Industry/Segment Account Broad-Based Demand HowMuchFocus? Large Account Marketing Model 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
  13. 13. What We Heard: 2015 State of Account-Based Marketing
  14. 14. © 2015 SiriusDecisions. All Rights Reserved 14 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
  15. 15. © 2015 SiriusDecisions. All Rights Reserved 15 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
  16. 16. © 2015 SiriusDecisions. All Rights Reserved 16 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 Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  17. 17. © 2015 SiriusDecisions. All Rights Reserved 17 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
  18. 18. © 2015 SiriusDecisions. All Rights Reserved 18 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 Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  19. 19. Don’t Try This At Home: Pitfalls to Avoid in Account-Based Marketing
  20. 20. © 2015 SiriusDecisions. All Rights Reserved 20 Top Three ABM Pitfalls 1. No sales buy-in for updated marketing role 2. Overpromising and under-resourcing 3. Not building an ABM ecosystem
  21. 21. © 2015 SiriusDecisions. All Rights Reserved 21 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…”
  22. 22. © 2015 SiriusDecisions. All Rights Reserved 22 Great ABM Is Customer-Focused, Insight-Led, Tech-Enabled Insights and Technology Buyer and Customer Needs Business Goals ABM
  23. 23. © 2015 SiriusDecisions. All Rights Reserved 23 Sales Buy-In: What’s The First Step To A New Image? Where does marketing get account insights for ABM today?
  24. 24. © 2015 SiriusDecisions. All Rights Reserved 24 Sales Buy-In: What’s The First Step To A New Image? Find out what they need to know and deliver it Marketers tell us they’re mainly asking sales to give them information about accounts Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  25. 25. © 2015 SiriusDecisions. All Rights Reserved 25 Sales Buy-In: What’s The First Step To A New Image? Try “give to get” strategy instead: Find out what sales wants to know and deliver it Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  26. 26. © 2015 SiriusDecisions. All Rights Reserved 26 Overpromising, Under-Resourcing: Skills Gap Is Critical Do your marketers doing ABM have the skills they need to be successful ? 53% 47% Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  27. 27. © 2015 SiriusDecisions. All Rights Reserved 27 Overpromising, Under-Resourcing: Set The Right Goals If you believe ABM success is measured only on lead volume… Think again. ABM is about influence.
  28. 28. © 2015 SiriusDecisions. All Rights Reserved 28 Prevent Overpromising: Report on The Right Measures Time to Result Measurement % who measure today Longterm # 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 MidTerm # 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 QuickWin 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% Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  29. 29. © 2015 SiriusDecisions. All Rights Reserved 29 ABM Teams Have A Lot To Do But Not Much Help Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  30. 30. © 2015 SiriusDecisions. All Rights Reserved 30 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 Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  31. 31. 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)
  32. 32. © 2015 SiriusDecisions. All Rights Reserved 32 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 Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  33. 33. © 2015 SiriusDecisions. All Rights Reserved 33 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 Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  34. 34. © 2015 SiriusDecisions. All Rights Reserved 34 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 Source: SiriusDecisions 2015 State of Account-Based Marketing Survey
  35. 35. © 2015 SiriusDecisions. All Rights Reserved 35 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
  36. 36. © 2015 SiriusDecisions. All Rights Reserved 36 Your New Hat A Gift From Sales
  37. 37. Thank You! @siriusdecisions @megheuer

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