Metrics and Insights Behind the ABM Revolution

ACCOUNT BASED MARKETING
METRICS AND INSIGHTS BEHIND
THE ABM REVOLUTION
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JESSICA FEWLESS
DEMANDBASE
CRAIG ROSENBERG
TOPO

© 2016 TOPO. All rights reserved.
THE SPEAKERS
Craig Rosenberg
Chief Analyst and Co-Founder | TOPO
@funnelholic
Jessica Fewless
Senior Director of Field & Partner Marketing | Demandbase
@JFewlessB2B

THE EVOLUTION OF ABM
…INTERESTING, MAYBE NEXT YEAR.2015
…TELL ME HOW!2016
…WHAT IS THAT EXACTLY?2014
2017 …TELL ME HOW TO DO IT BETTER!

We’re an Analyst Firm that Helps 100s of
Demand Generation, Sales Development, and Sales
Organizations Grow Revenues in a Scalable Manner.

3 WAYS OF DELIVERING SCALABLE REVENUE GROWTH
A customized “owner’s
manual” for various sales
or marketing functions
Analyst support for big issues
like process, organization
and technology
Detailed, engaging training on
playbooks and best practices
PLAYBOOKS1 ADVISORY2 TRAINING3

AGENDA
1. INTRO
2. RESEARCH METHODOLOGY
3. THE STATE OF ABM
4. THE FINDINGS
5. FINAL TAKEAWAYS

WE TALKED TO 50 MARKETERS ABOUT THEIR ABM PROGRAMS
3Q16: Data collection of current
ABM programs
HIGHLIGHTS
§ 60 minute, in-depth interviews
§ 50 CMOs, VPs and Directors of
Marketing and Demand Gen
§ All stages of maturity
§ Primarily high tech but with mix
of fin-service, healthcare,
manufacturing, telecom, energy,
and publishing
REVENUE CLASSIFICATION:
SIZE REVENUE
RANGE
AVERAGE
($M)
REPONSES
(%)
Large > $501M $11.4B 20%
Growth $51M - $500M $171M 42%
Early $0 - $50M $22M 38%
TIME IN ABM % RESPONSES
>2yr 22%
1yr-2yr 24%
<1 year 40%
Inception 14%
MATURITY:

THE STATE OF ABM:
ABM OUTPERFORMS TRADITIONAL
MARKETING METHODS

ABM OUTPERFORMS TRADITIONAL METHODS
3.98
4
4.02
4.14
4.2
4.31
4.64
1 2 3 4 5
Customer Retention Rate
Initial Contract Value
Close Rate
Return on Sales & Mktg. Investment
Upsell/Cross-sell
Overall LTV
Alignment Between Sales & Marketing
ABM provides much
greater benefit than
traditional approach
ABM and
traditional
are same
Traditional
approach benefit
is much greater
Benefits of ABM vs. Traditional Marketing Approach

ABM INCREASES ACV BY 171%
$71,941
$195,294
$0
$40,000
$80,000
$120,000
$160,000
$200,000
Pre-ABM ACV Post ABM ACV
Average Annual Contract Value (ACV)
171% lift

ABM DELIVERS DEAL VELOCITY AND EFFICIENCY
5%
5%
6%
11%
17%
27%
30%
0% 5% 10% 15% 20% 25% 30% 35%
Brand Preference
Improved Perception of Marketing
Target Account Engagement
Higher ACV / Mktg. ROI
Sales / Marketing Efficiency
Accelerate Pipeline / Deal Velocity
Organizational Focus
% of Mentions
Benefits of ABM

THERE ARE CHALLENGES – BUT ALL ARE SOLVABLE
7%
11%
11%
12%
14%
21%
25%
0% 5% 10% 15% 20% 25% 30%
Developing Content
Technology
Lack of ABM Metrics / Results
Executive and Organizational Buy-in
Target List/Account Selection
Execution: Process, Data, Orchestration
Sales & Marketing Alignment
Key ABM Challenges

LEARNING #1:
THE IDEAL CUSTOMER PROFILE (ICP) IS THE
FOUNDATION OF ABM

DEFINING THE ICP IS CORE TO ABM STRATEGY
4.1
4.2
4.2
4.3
4.3
4.4
4.6
3.8 3.9 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7
Aligning Account Teams
Using Account-centric Metrics
Personalizing Offers and Content
Developing Alignment Strategy
Orchestrating Campaigns
Maintaining Account Data
Targeting the Right Accounts
Observed / Expected Value of ABM Strategies

DEFINE THE ICP AND CREATE A TARGET ACCOUNT LIST
The Ideal Customer Profile defines the accounts that are most likely
to buy from you at a viable economic threshold (e.g., CAC and LTV)
DATA ICP TARGET LIST
ATTRIBUTE DEFINITION
Ad Spend >$50M/year ad spend
Geos North America, EMEA,
APAC
Industries • Financial Services
• Automotive
• Travel
• Retail
Behaviors • $15M/year tech
spend
• In-house
programmatic
function
• 25+ campaigns
Complete CRM data
(target accounts and key
personas) and regular
data cleanse and update
3. QUALITATIVE
(e.g. sales rep feedback)
2. INTERNAL
(e.g. closed-won by segment)
1. EXTERNAL
(e.g. predictive analytics)

LEARNING #2:
ORCHESTRATION IS NOT
AS SCARY AS YOU THINK

ORCHESTRATION IS A CHALLENGE BUT IS SOLVABLE
7%
11%
11%
12%
14%
21%
25%
0% 5% 10% 15% 20% 25% 30%
Developing Content
Technology
Lack of ABM Metrics/Results
Executive and Organizational Buy-in
Target List/Account Selection
Execution: Process, Data, Orchestration
Sales & Marketing Alignment
Key ABM Challenges

AB
ADVERTISING
DIGITAL
MARKETING
PERSONALIZATION
DIRECT
MAIL
MARKETING “AIR-
COVER” LEADS
EXEC
OUTREACH
SDR
OUTREACH
OUTREACH
ACCOUNTS
IDENTIFIED
ACCOUNT
RESEARCH
CAMPAIGN
CREATED
CAMPAIGN
CREATED
HIGH-VALUE
CALL TO ACTION
MEETING SET
START WITH MARKETING - SDR COLLABORATION

LEARNING #3:
ABM IS ABOUT CUSTOMERS
AS WELL AS PROSPECTS

ABM IS ABOUT CUSTOMERS AS WELL AS PROSPECTS
73%
63%
35%
24%
33%
58%
3% 4%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Early (< $50M) Growth ( $50-$500M) Large ( > $500M)
Prospects Customers Partners
Relationship Focus by Respondent Company Size

EVEN NEW ABM PROGRAMS FOCUS ON CURRENT CUSTOMERS
32%
71%
63%
60%
26%
32%
8%
3%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Inception <1yr. 1yr - 2yr.
Prospects Customers Partners
Relationship Focus by Respondent Company Size

IDENTIFY KEY ACCOUNT STAKEHOLDERS
USE CASE STORY DEVELOPED
EXEC MAILER: HIGHLIGHT USE CASE
ADVERTISING: USE CASE OFFER
ACCOUNT-ONLY WEBINAR: USE CASE
WEBSITE OFFER: USE CASE
REFERRALS, OFFER TO DISCUSS USE CASE
ON-SITE EXECUTIVE WORKSHOP ON USE CASE
LUNCHES, OFF-SITE ACCOUNT-ONLY EVENTS
USE CASE DISCUSSION (VS DEMO)
ABM UPSELL/CROSS-SELL CAMPAIGNS CONVERT
CALL TO ACTION
ACCOUNT RESEARCH
CAMPAIGN CREATED
DIRECT MAIL
AB ADVERTISING
DIGITAL MARKETING
PERSONALIZATION
SDR OUTREACH
WORKSHOP
LIVE EVENTS

LEARNING #4:
THE MQL IS NOT MARKETING’S
ULTIMATE MILESTONE

MATURE ABM ORGANIZATIONS FOCUS ON DOWNSTREAM
METRICS LIKE PIPELINE
3%
5%
5%
7%
8%
8%
8%
12%
16%
28%
0% 5% 10% 15% 20% 25% 30%
LTV
Deal Velocity
Revenue (Growth, Spend, Return)
MQL, MQA
SAL, SQL
Close/Win Rate
ACV / Deal Size
Account Coverage
Engagement
Pipeline
% of Mentions
ABM Metrics Focus

CONTACT MQL SDR MEETING OPPORTUNITY WON
KEY ABM METRICS
§ Target Account Pipeline
§ Deal Velocity
§ Win Rates
MQA
SHIFT IN FOCUS
ABM MARKETERS SHOULD BE MEASURED ON THE
METRICS THAT MATTER
§ Average Contract Value (ACV)
§ Lifetime Value (LTV)

LEARNING #5:
BUILD THE TECH STACK
FROM THE GROUND UP

THE TECH STACK IS BUILT FROM THE GROUND UP
4.5
4.3
4.2
4.2
3.9
3.8
3.7
3.7
3.6
3.6
0 1 1 2 2 3 3 4 4 5 5
CRM
Marketing Automation
Target List Data Automation
ABM Analytics and Attribution
ABM Management
Website Personalization
Account-based Advertising
Content Personalization
Predictive Analytics
Sales Communication Apps
Value to ABM
Start with the
foundation
and build-up

LEARNING #6:
ABM SUCCESS TAKES TIME
(BUT NOT THAT MUCH)

ABM PROFICIENCY GROWS OVER TIME
1.6
2.6
3.3
3.7
0
0.5
1
1.5
2
2.5
3
3.5
4
Inception < 1yr. 1yr. - 2yr. > 2yr.
1 = Needs Improvement 3 = Meeting Objectives 5 = Excelling
Average Performance by ABM Maturity

82PERCENT
BUT IT DOESN’T TAKE THAT LONG
23PERCENT
of organizations executing ABM for 1 year +
are meeting or exceeding their objectives
of organizations are meeting their
objectives in less than a year

THE STATE OF ABM: IT WORKS
1. Starts with the ICP
2. Orchestration isn’t as Hard as you Think
3. Customer Expansion is a Successful Use Case
4. Measure ABM Programs by Revenue Metrics not Marketing Metrics
5. ABM Takes Time But not as Much as you Think

KEY TAKEAWAYS FOR 2017
ABM§ is outperforming traditional marketing
§ is for targeting prospects and customers
§ is driving positive organizational change
§ results improve with time

Q&A

THANK YOU

Metrics and Insights Behind the ABM Revolution

Metrics and Insights Behind the ABM Revolution

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