Butting heads: Why Account Based Marketing (ABM) makes sales and marketing alignment easier - not harder
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In the B2B world, aligning sales and marketing has been a challenge going back decades. If you believe the stereotype, it's because marketing is the colouring-in department and sales are know-it-alls who don’t listen. This session will look at why aligning the two is actually easier not harder when adopting an Account Based Marketing strategy.
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Butting heads: Why Account Based Marketing (ABM) makes sales and marketing alignment easier - not harder
- 1. Butting heads: Why ABM makes sales and marketing alignment easier, not harder
- 2. Account Based Marketing and Sales Agency We equip you to do at scale what you do for your top five accounts
- 5. Average Deal Size Increase 7.4% 2.8% -5.7% Top 20%: Middle 50%: Bottom 30%:
- 7. History: Sales and marketing alignment Marketing Sales SalesMarketing Marketing Sales Agreed Metrics and Definitions Unaligned or Sales request leads Account Based Marketing
- 8. ABM needs Sales and Marketing to work together
- 9. Not insurmountable Account Based Marketing actually improves alignment
- 11. Research • 515 studies reviewed by Pettigrew & Tropp • 5 major aspects to alignment
- 12. 1. The groups should cooperate towards shared goals
- 14. Account Based Approach Baa baa Baa baa?
- 15. 2. The contact between the groups should be enjoyable
- 16. How are you working together?
- 18. Insights
- 19. 3. The groups should be of roughly equal status
- 21. Ultimate goals
- 22. 4. Group members should counter the other group’s negative stereotypes
- 25. 5. Group members should have the potential to become friends
- 27. Summary • Increased communication • Increased collaboration through planning and insights • Increased average deal size • Common language • Reduced power disparity between sales and marketing • More deals
Editor's Notes
- Why does it exist? Two major sources of friction between Sales and Marketing. One is economic, and the other is cultural. Economic: sales force can criticize how Marketing spends money and how they price the platform as sales can sell the product more easily. Marketing responsible for list prices and promotional pricing, Sales has the final say over transactional pricing. VP sales goes directly to CFO. marketing group unhappy. Promotion costs, too, are a source of friction. marketing group spends money to generate awareness of, interest in, preference for, and desire for a product. sales views the large sums spent as a waste of money. Sales: Better to hire more sales people. Going to touch on both looking at how ABM improves alignment and makes it easier rather than harder to achieve.
- Companies with aligned sales and marketing teams grow 32% faster Aberdeen Group. when IBM integrated its sales and marketing groups: Sales cycles are shorter, market-entry costs go down, and the cost of sales is lower Multinational telecoms business – VP sales put his success in his region down to alignment with marketing vs other regions
- Too often sales views marketing as throwing buckets of leads over a wall and not caring about them afterwards. With an ABM approach, there is no hand-off.
- Increased collaboration helps Psychologists found that increased contact alone was not enough
- MQLs, SALs, sales just want the right leads to follow up with. Maybe they should care but as they don’t have any real input into the ongoing processes of generating leads it is difficult to engage with it.
- identifying accounts together at the very beginning. Identifying an approach for each account planning and reacting around an account together. You are both discussing a prospect in the same language of an account, its individuals who make up the target account and on the best way to close it.
- Generating leads – lots of leads – but size of opportunity was too small vs the effort required to close. Impossible for sales to hit targets. 100 leads a day. Celebrate successes together Work together on challenges
- At a major tech firm, a sales team didn't want to involve marketing in account strategy discussions - with one glaring exception. A field marketer who was out in the field and working continuously alongside the sales team had become 'one of the team', She was often the first person the sales team called into these discussions.
- Insights about an account help sales to close their deals. The ability to automate this is one of the reasons why ABM can now be scaled but the largest accounts should still involve face to face. At another telecoms firm – the ability for marketing to step in and provide insights on an account helped him outperform other regions
- When using MA, marketing typically provides around 25% of leads with sales teams providing the remaining 75%. Varies from organisation to organisation At another global tech firm, when launched into a new market – marketing was mostly about providing credibility in the market – most leads generated through outbound calling. Later as the organisation matured in the market – this shifted closer to 50:50. With ABM, the sales and marketing teams can work across major accounts together across both phases of launch, facilitating mutual respect and status. Balance effect. When accounts need to be kept warm as they arent yet in the buying phase, marketing can lend support to nurturing the account. Allowing the sales person to focus on closing the deal.
- Ultimate goal is revenue and when it comes to ABM this is the metric both teams should be targeted on. This further ensures that both teams are working towards a common goal
- Avoid The colouring in department Avoid sales as the know it alls
- Reduces creation of negative stereotypes. Marketing provides the broader market understanding and the messaging that accelerates the sales cycle, while sales creates the engagement and builds the relationships that successfully closes the account. Large Telecoms company story: “I need Marketing to step up and keep the prospect engaged until John can get to them.”
- The increased collaboration makes it more likely At a major tech firm, a sales team didn't want to involve marketing in account strategy discussions - with one glaring exception. A field marketer who was out in the field and working continuously alongside the sales team had become 'one of the team', She was often the first person the sales team called into these discussions.