Account Based Marketing 2.0: An Integrated Approach to Growth & Innovation

Account-Based Marketing 2.0:
An Integrated Approach to Growth and Innovation
Rob Leavitt Senior Vice President, ITSMA
ITSMA Masterclass for Great Indian IT Marketing Summit
Bangalore, India | February 21, 2017

ITSMA Masterclass for Great Indian IT Marketing Summit | Bangalore, India | February 21, 2017 | PN5807 © 2017 ITSMA. All rights reserved www.itsma.com 2
What will we learn in today’s session?
• ABM principles and approaches
• Why ABM is so important in 2017
• How you can begin to create an ABM strategy
and plan
• How companies are implementing, managing,
and measuring ABM

ITSMA and ABM: A long history of research,
education, and advisory support
ITSMAABM Council
ITSMA Marketing Excellence Awards
2016: Accelerating Growth with ABM
ITSMA’s Account-Based MarketingSM
Certification Program
• 8−9 March 2017 | Cookham, Berkshire
• 12-13 July 2017 | Boston, MA

Our new ABM book will
be available in March!
pre-order via Amazon

Defining account-based
marketing

Account-Based Marketing is on the rise!
1993
Don Peppers and
Martha Rogers
publish their seminal
book, The One to
One Future
1997
CSC launches
full-court press pursuit
marketing, lands two
highly visible 10-year
outsourcing contracts
worth approximately
$170 million
2004
ITSMA publishes
ground-breaking paper,
Account-
Based Marketing:
The New Frontier
2007
ITSMA introduces
Three-Phase
Model for ABM
development
2013
ITSMA introduces
the first Certification
Program for Account-
Based Marketers

A simple definition:
“Treating individual accounts as markets of one”
Core principles:
1. Client centricity and insight
2. Partnership between sales and marketing
3. Focus on reputation and relationships, not just revenue
4. Tailored programs and campaigns

One to many
accounts
One to few
accounts
One to one
accounts
Strategic
ABM
ABM Lite
Programmatic ABM
Early success, new thinking,
and new tools have led to
the emergence of three
types of ABM

Why bother withABM?

Buyers are overwhelmed:
Marketers need to focus on the new 4Ps
Personalized Proactive
ProvenPeer influenced

76
61
29
27
Customers view us more as a trusted
partner/advisor than a vendor
Customers have broader awareness and
understanding of our offerings and strategy
Increased customer satisfaction because of a
more tailored approach
Customers feel better understood as a result
of the in-depth analysis we do
Key benefits of ABM for customers
What are the key
benefits of your
ABM program for
customers?
% of respondents
(N=62)
Note: Multiple responses allowed.
Source: ITSMA Account-Based
Marketing Survey, October 2013

57
57
48
45
42
11
8
7
3
2
Sales uncovers more new opportunities within accounts
Increased account penetration: wallet share, revenue, and margin
Sales is able to have richer conversations with customers
More consistent and aligned BU/brand/offer messaging into accounts
Improved marketing and sales alignment
Sales is viewed as a trusted advisor
More sole-sourced opportunities
More referenceable accounts
Shorter sales cycles
Other
Key benefits of ABM for sales people
and account managers
What are the key
benefits of your
ABM program
for sales?
% of respondents
(N=62)
Note: Multiple responses allowed.
Other includes: Increased investment
dollars spent on business development
Source: ITSMA Account-Based
Marketing Survey, October 2013

Source: ITSMA Account-Based MarketingSM Survey, March 2016
of companies say
ABM delivers higher ROI
than for other types of marketing
%

Defining and aligning
ABM strategy

How ABM relates
to overall
marketing strategy
Brand marketing
(All audiences)
Segment Marketing
(e.g., All retailers)
Programmatic ABM
(Named retailers)
ABM Lite
(Cluster of key retail
accounts with
similar issues)
Strategic ABM
(Top retail
accounts)

Pursue Major
Opportunities
Develop New
Accounts
Change Perceptions
or Positioning
These are the key contexts where ABM
is most successfully implemented
Improve Account
Penetration, Uncover
Opportunities for
Cross-Selling/
Upselling

Few companies are implementing all three types
49% 1 Type only
39% 2 Types
12% all 3 Types12
6
13
21
14
16
20Strategic ABM only
ABM Lite only
Programmatic ABM only
Strategic ABM and ABM Lite
ABM Lite and Programmatic ABM
Strategic ABM and Programmatic ABM
All three types of ABM
Note: Differences are statistically significant.
Source: ITSMA Account-Based MarketingSM Survey, March 2016
Types of ABM Implemented
% of respondents (N=88)

Source: SAP, 2016 ITSMA Case
Study, Strategic ABM at SAP
Driving growth and relationships
with key accounts, CS0041
Industry
example:
ABM program
journey

Strategic ABM ABM Lite Programmatic ABM
Primary objectives 1. Change perceptions
2. Build relationships
3. Identify opportunities
1. Build relationships
2. Identify opportunities
1. Generate leads
Account focus 70% existing
30% new
56% existing
44% new
51% existing
49% new
Avg. accounts in
program
19 85 N/A
Average accounts
per ABMer
4 22 N/A
Top tactics • One to one meetings
• Account-specific
thought leadership
• Innovation days
• Executive engagement plans
• Private events
• One to one meetings
• Email marketing
• Custom collateral
• Reverse IP/digital
advertising
• One to one meetings
• Email marketing
• Custom collateral
• Reverse IP/digital
advertising
Source: ITSMA Account-Based MarketingSM Survey, March 2016 (N=112)
Let’s compare the three types of ABM

Strengthening sales
engagement

How do we select
the right accounts? Develop for income
(Programmatic
ABM)
Harvest or divest
(segment/
mass marketing)
Divest
(mass marketing)
Invest selectively
for growth
(Strategic ABM,
ABM lite)
Develop selectively
for income
(Programmatic
ABM)
Harvest
(segment/
mass marketing)
Invest for growth
(Strategic ABM)
Invest selectively
and build
(Strategic ABM,
ABM lite)
Develop selectively
(Programmatic
ABM)
L M H
H
M
L
Account attractiveness
Relative
business
strength

The seven-
step
ABM process
1
Knowing what is driving the
account
2
Playing to the
clients’ needs
3
Mapping & profiling
stakeholders
4
Developing targeted
value propositions
5
Planning integrated sales
and marketing campaigns
6
Executing integrated sales
and marketing campaigns
7
Evaluating results and
updating plans

Sample ABM campaign plan (financial services)
Business imperatives/
initiative Solution Target stakeholders
Marketing campaign
objectives Activity/campaign Resources
Expand Globally
• Create infrastructure
environment to
support multiple
currencies,
languages, etc.
• Create streamlined
platform for on-
boarding process
ABC Solution • VP of ABC
Business Unit
• IT Infrastructure
team
• Establish XYZ as a
Thought Leader in
financial services
globalization Issues
• Articulate XYZ
commitment to Financial
Services industry and
Customer Globalization
needs
• Demonstrate that XYZ
technology can support
globalization demands
and is easily integrated
with Partner technology
• Sponsor financial industry
survey and report
• Email announcing
survey/inviting XYZ input
• Sales calls to arrange
survey-related interviews
• CTA: Attend
IDC/Globalization
Roundtable
• Email follow-up with further
survey results
• Invitations for private
briefings
• List of key people
and required budget

Content and messaging customization
Different tiers of ABM support different levels of customization
Individualized
Personalize
d
Persona-
based
Industry or
segment
Role-
based
Generic

Q1 Q2 Q3 Q4
Client interview
Account
Innovation Day
Account /opportunity
microsite
Customized
Webinar #1
Account breakfast
briefing
Roadshow/lunch & learn
Stakeholder
mapping
ABM workshop
Account assets—presentation, battlecard, infographics, videos, case studies
Channel relationships
Regular reuse of marketing initiatives
Event/hospitality
ABM Kickoff
Call/Meeting
Sponsored Activity
Client Partnership
Review Document
Customized
Webinar #2
Account Review
ABM Account
Insight
Integrated sales and marketing campaign

ABM Lite campaign: 8 automotive manufacturers
generates $31m pipeline

Industry example:
Contents of an internal ABM playbook
What is ABM? Our approach Next steps
• Definitions
• Why is ABM important now?
• Underlying principles of
ABM
• The benefits ABM delivers
• Integrating ABM with our
sales model
• ABM step by step
• The role of the ABM-er
• Tools and templates
• Getting started
• Key contacts by region

ManagingABM
programs

Your ABM Journey
Pilot
• Determine pilot accounts
• Develop metrics
• Research and analyze pilot
accounts
• Build integrated account
plan and execute
• Measure and review
• Publicize results
© 2017 ITSMA. All rights reserved.
Build
• Gather learnings from pilots
• Refine account selection
criteria
• Begin defining common
metrics and success criteria
• Identify funding sources and
resources
• Create growth criteria
• Deepen executive
sponsorship
Standardize
• Create PMO and
governance model
• Determine standard metrics
and success criteria across
all accounts
• Develop staffing process
• Integrate ABM into the
overall reward/recognition
system
Scale
• Achieve economies of scale
through standard
processes, shared services,
and automation
• Create ABM knowledge
management system
• Leverage ABM practices in
other areas of marketing

Companies with centralized governance and
program management are more likely to be
perceived as strategic and meet expectations
4.1
3.5
4.3
3.8
2.9
3.4
ABM is widely understood to be a strategic program,
rather than tactical sales support
ABM is widely understood to be a corporate, revenue
acceleration program, rather than a marketing program
Our approach to ABM is grounded in a deep understanding
of the client’s business needs rather than developing
and executing custom marketing communications
Have GC/ PMO
(N~8)
No GC/ PMO
(N~8)
To what extent do
you agree with
the following
statements?
Mean rating
Source: ITSMA’s Account-Based MarketingSM Survey Benchmarking Study, 2014
1
Strongly
disagree
5
Strongly
agree
Note: Mean rating based
on a 5-point scale where
1=Strongly disagree and
5=Strongly agree.
Mean rating

Skills Matter! ITSMA’s ABM Competency Model
Career path
Market and
account
intelligence
Account
relationships
and strategy
Tailored value
propositions
Marketing
communications
Business acumen
Leadership
Cross-organizational collaboration
Workstyle

ABM technologies… if you have the foundation

MeasuringABM impact

KPI dashboard Relationships Revenue Reputation
Top metrics • Coverage: number of
relationships across
accounts; new
executive contacts
• Engagement: event
attendance, campaign
response rates, number of
meetings
• Strength of existing
relationships—negative/
neutral/positive
• Pipeline growth
• Revenue growth
• Deal size and type
• Portfolio penetration
• Total revenue tied to
ABM activities
• Share of wallet
• Win rate
• Sales and account
team satisfaction
• NPS
• Brand perception
• Success story references
and advocates
An illustrative ABM program dashboard

Source: ITSMA Account-Based MarketingSM Survey, March 2016 (N=112)
` Strategic ABM ABM Lite Programmatic ABM
Top metrics • Pipeline growth
• Revenue growth
• Sales satisfaction
• Client engagement
• Customer satisfaction
and loyalty
• Pipeline growth
• Revenue growth
• Sales satisfaction
• Win rate
• Revenue tied to ABM
• Pipeline growth
• Revenue growth
• Client engagement
• Revenue tied to ABM
ROI higher
than any other
marketing
92% 68% 67%
The three types of ABM favor different metrics

Source: SAP, 2016, ITSMA Case Study, Strategic ABM at SAP Driving growth and relationships with key accounts CS0041
Metric 2014 2015
Marketing pipeline touched $209M touched, $27.6M closed $448M touched, $75M closed
Marketing progressed pipeline $57M touched, $30.3M closed $107M touched, $54M closed
New opportunities created 49 for $27M in new pipeline 48 for $40.5M in new pipeline
New line of business (LOB) contacts 1,200 1,420
SAP’s ABM results
Program metrics at SAP

Good account or sales team feedback
is your most useful metric
“Before we began using account-based marketing,
I worked with Marketing in purely tactical, reactive
ways, like asking for the latest collateral. Now I
engage them proactively at the start of a client
engagement.”
Xerox Global Account Team Sales Leader
“This account-based marketing focus has been
useful. We are helping the account team focus on
the customer’s needs as opposed to focusing on
what we want to sell them.”
Xerox Global Account Team Sales Leader

Client feedback is the ultimate KPI
“I am really glad I have done this interview as it has
made me realize what a sea change there has been
in my thinking regarding COMPANYA, since taking
on this new role.”
COO, UK Financial Services Company
“This attitude of really working to understand our
issues, checking back with us, putting your in our
shoes, and coming up with solutions, gets a ten out
of ten from me.”
CFO, Global Media Company

Any questions or
comments?

1. There are many flavors of ABM: decide up front which
type or types are right for your business
2. For ABM program success you can never spend enough
time creating interest and buy-in from the business
3. PowerfulABM comes from close engagement and
alignment with sales
4. When the business demands more, use technology to
scale your ABM program
5. Measure and communicate your ABM successes right
from the start to give yourself the best chance of
delivering amazingABM ROI
#ITSMA17
#ABMpower
Tweetable takeaways for ABM program success

Thank you
Rob Leavitt
Senior Vice President
ITSMA
rleavitt@itsma.com
+1 508 654 7181
@RobLeavitt

Account Based Marketing 2.0: An Integrated Approach to Growth & Innovation

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