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ACCOUNT BASED MARKETING
METRICS AND INSIGHTS BEHIND THE ABM REVOLUTION
These materials have been prepared by TOPO for the exclusive and individual use of our clients. Unauthorized reproduction is strictly prohibited. These materials contain valuable confidential and proprietary information belonging to TOPO and they may not be shared with any third party without the prior approval of TOPO. To learn how you can become a TOPO client, visit www.topohq.com.
JESSICA FEWLESSDEMANDBASE
CRAIG ROSENBERGTOPO
© 2016 TOPO. All rights reserved.
THE SPEAKERS
Craig RosenbergChief Analyst and Co-Founder | TOPO@funnelholic
Jessica FewlessSenior Director of Field & Partner Marketing | Demandbase@JFewlessB2B
© 2016 TOPO. All rights reserved.
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.
© 2016 TOPO. All rights reserved.
3 WAYS OF DELIVERING SCALABLE REVENUE GROWTH
A customized “owner’s manual” for various salesor marketing functions
Analyst support for big issues like process, organizationand technology
Detailed, engaging training on playbooks and best practices
PLAYBOOKS1 ADVISORY2 TRAINING3
© 2016 TOPO. All rights reserved.
AGENDA
1. INTRO
2. RESEARCH METHODOLOGY
3. THE STATE OF ABM
4. THE FINDINGS
5. FINAL TAKEAWAYS
© 2016 TOPO. All rights reserved.
WE TALKED TO 50 MARKETERS ABOUT THEIR ABM PROGRAMS
3Q16: Data collection of current ABM programsHIGHLIGHTS§ 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
RANGEAVERAGE ($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:
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
LEARNING #1:
THE IDEAL CUSTOMER PROFILE (ICP) IS THE FOUNDATION OF ABM
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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 LISTATTRIBUTE DEFINITION
Ad Spend >$50M/yearadspend
Geos NorthAmerica,EMEA,APAC
Industries • FinancialServices• Automotive• Travel• Retail
Behaviors • $15M/yeartechspend
• In-houseprogrammaticfunction
• 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)
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
ABADVERTISING
DIGITALMARKETING
PERSONALIZATION
DIRECTMAIL
MARKETING “AIR-COVER” LEADS
EXECOUTREACH
SDROUTREACH
OUTREACH
ACCOUNTSIDENTIFIED
ACCOUNTRESEARCH
CAMPAIGNCREATED
CAMPAIGN CREATED
HIGH-VALUECALL TO ACTION
MEETING SET
START WITH MARKETING - SDR COLLABORATION
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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)
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
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
© 2016 TOPO. All rights reserved.
KEY TAKEAWAYS FOR 2017
ABM§ is outperforming traditional marketing§ is for targeting prospects and customers§ is driving positive organizational change§ results improve with time