Top 6 Considerations for ABM in 2018

EXPERT ABM

#ExpertABM

SECRETS TO SUCCESS

Top 6 Considerations for your 2018 ABM Strategy

© 2017 DEMANDBASE｜SLIDE 2

TODAY’S PRESENTERS

Jessica FewlessVP ABM Strategy, Field & Channel Marketing@jfewlessB2B

Emily WingroveSr. Manager, ABM Education & Training@EmilyMariaaa

#ExpertABM

§ How do I align everyone on a definition of ABM?§ What is the fundamental structure I need in place for success?§ What size should our Target account list be?§ How do I budget for ABM?§ What technology do I need to support my strategy?§ How do we demonstrate success when we have a 6+ month sales cycle?

Has 2018 Planning left you asking any of these questions?


Good news is, you’re BOTH right! ABM is a comprehensive demand generation strategy that actually covers BOTH approaches!

I’m in charge of “ABM” next year. But my sales team thinks ABM is a strategic account strategy. I think it is a broader demand gen strategy. How do I get us on the same page?

-VP, Field Marketing


ABM IS A COMPREHENSIVE DEMAND GEN STRATEGY

§ Select your approaches to match:§ Revenue Goals§ Business Objectives§ Strategic Initiatives§ Business Model§ Budget Optimization

1:1

1:Few

1:Many

Each tier provides different value to the business


ABM is a team sport – Marketing, Sales and Operations. So you need to have those three functions in regular communication to ensure success!

We’re just getting started with ABM and I’m struggling with the structure I need to have in place to ensure success. What is the fundamental team I need to assemble to get this off the ground?

-VP, Growth Marketing


ABM IS A TEAM SPORT!

MarketingOperationsSales

Senior leaders in…

Build Your ABM Leadership Team


CENTRALIZED ACCOUNT-BASED MARKETING

Small and mid-size companies with ABM at the foundation of the overall marketing strategy.

§ Leverages economies of scale.§ Consistency across target accounts.

§ Harder to customize customer experiences.

§ Multiple points of contact for sales and account reps.

BEST FOR

PROS

CONS

CMO

Field Marketing

Demand Gen

ProductMarketing

MarketingOperations

CustomerMarketing

MOST marketing is full-funnel

ABM focused


ACCOUNT-BASED MARKETING AS A SHARED SERVICE

Technology & DataTarget Account Lists

Web OperationsABMA Programs

Analytics & Reporting

DecentralizedABM Team

Field marketingRegional marketing

Business unit marketingSegment marketing

DivisionalMarketing

DivisionalSales

Sales developmentRegional sales

Business unit salesSegment sales

Large and mid-size companies that want a hybrid between economies of scale and divisional ABM expertise.

§ Leverages some economies of scale.§ Some consistency and customization

across divisions.

§ May be hard to serve all divisions equally.

§ Rollouts are dependent on divisional resources.

BEST FOR

PROS

CONS


AUTONOMOUS ABM FUNCTIONS BY BUSINESS UNIT

BusinessUnit 1 GM

Business Unit 2 GM

BusinessUnit 3 GM

Head of MarketingBusiness Unit 1

ABM Team



Other Team

Other Team

Other Team

ABM Team

Other Team

Other Team

Other Team

ABM Team

Large companies with significant differences between the target accounts in each business unit.

§ High customization based on business unit needs.

§ Dedicated resources based on business unit needs.

§ Harder to achieve corporate consistency.

§ Silos limit learning and sharing experience.

BEST FOR

PROS

CONS


CENTRALIZED ABM WITH SEGMENT OR BUSINESS UNIT MATRIX

ABM Programs

Business Unit 1 GM

Business Unit 2 GM

OtherMarketing

OtherMarketing

Segment ABM

Segment ABM

Segment Marketing

Segment Marketing

Segment Marketing

Segment Marketing

Head of MarketingLarge, matrixed companies that want a hybrid between consistency and customization.

§ Centralized team maintains consistency.

§ Divisional teams have some flexibility to customize.

§ Customization limited by centralized decision making.

§ Harder to align divisional teams with differing priorities.

BEST FOR

PROS

CONS


ORGANIZING AROUND ABM CAMPAIGNS AND PROJECTS

Team 1

Big industry event

Targeted lead-gencampaign

Customer casestudy project

Direct mail campaign

Win-back campaign

Team 2 Team 3 Team 4Head of ABM Large and mid-sized companies with a

focus on innovation and achieving highly customized short-term customer experiences.

§ Highly creative, customized campaigns.

§ Focus and flexibility drives excellence.

§ More difficult to achievelong-term results.

§ Economies of scale are difficultto achieve.

BEST FOR

PROS

CONS


There are a number of factors that will help you size (and segment) your target account list, and the right answer for every company will be different!

So our company is committed to ABM next year, and we’ve got some great data to help inform our target account list, but we’re struggling with how big it should be? 200, 2000 or somewhere in between?

-Director, Demand Gen


START WITH YOUR TAM AND THEN FOCUS

§ TAM: All companies that could buy from you

§ TARGET MARKET: Accounts that are suitable clients – meet your ICP

§ TARGET ACCOUNT LIST: Our focus of XXXX accounts – XX accounts per sales rep, and those showing buying intent

§ AE TOP ACCTS: Top XX% of the Target Account List that is the primary focus for Sales & Marketing

§ OPPORTUNITY: Any account that is engaged in a Sales Cycle –MQL+

TAM

Target Market

Target Accts

AE Top Accts

Opportunity/Customers


LEVERAGE DATA AND FIELD KNOWLEDGE TO BUILD THE LIST

It’s always collaborative!

Secure Agreement from leadership

Verify & Iterate with sales

Update at regular intervals

Build an initial list

4321


WHAT’S THE RIGHT LIST SIZE?

MARKETING CAPACITY

Things to consider:


The first question you should ask about any program you are thinking about addition to your ABM strategy is “can I predictably and reliably get to my Target Account List”. When that answer is “yes”, then put it in your budget.

We know that our budget allocations will be different with an ABM approach, but we’re not really sure how to think about it or what those differences will be?

-Director, Demand Gen


PUT THE TARGET ACCOUNT LIST TO WORK

Can we sponsor just the events that attract our target accounts AND

will give us a speaking slot?Fewer events; greater ROI

Can we personalize our website to deliver relevant content and keep

target accounts on our site longer?Optimize for the 15%

TARGET ACCOUNT LIST

EVENTS DIGITAL CAMPAIGNS

How can we engage customers and speed the pathway to upsell and renewal?

Expand customer relationships

CUSTOMER MARKETING FIELD MARKETING

Which regions contain the highest concentration of target accounts?

Set the strategy; don’t be reactive


TAM Marketing Overview

§ TAM: $§ Tactics: National tradeshows, webinars, videos,

infographics and ebooks

§ TARGET MARKET: $§ Tactics: TAM tactics + nurture campaigns,

segment personalization, Corporate Event

§ TARGET ACCOUNT LIST: $$§ Tactics: TARGET tactics + Contact Acquisition +

Advertising, Discounts to events

§ AE TOP ACCTS: $$$§ Tactics: TARGET ACCOUNT tactics + Direct

Mail, Field Activities like VIP Dinners, High Value/High Touch offers

§ OPPORTUNITY: $$$$§ Tactics: AE TOP ACCT tactics + First priority for

field programs, FREE offers for events, 1-off DM

$ = Spend per account. Shown for scale, not precision

TAM

Target Market

Target Accounts

AE Top Accts

Opportunity/ Customer

© 2016 DEMANDBASE # 20

RE-ALLOCATE RESOURCES

$222K / year for New ABM Programs & ABM Technologies

$465kFULL BUDGET

CONTENT SYNDICATION

WEBINAR SPONSORSHIPS

DIGITAL ADVERTISING

REGIONAL EVENTS

SAVING BY ABM APPROACH

$243kFULL BUDGET

Standard B2B Marketing Spend

ABM OptimizedSpend


While corporate efficiency and revenue impact are the ultimate goals of ABM, there are also interim metrics that indicate positive impact of an ABM strategy.

Our sales cycle ranges from 3 to 18+ months in length. How do we demonstrate success along the way?

-VP, Integrated Marketing


SALES TEAM CLOSE RATE ACV FUNNEL VELOCITY

Enterprise +217% +69% +35%

Mid Market +136% +23% +24%

Advertising +47% +12% +6%

CORPORATE EFFICIENCY


SDR TEAM EFFICIENCY

The quarterly pipe output of each SDR has tripled since the beginning of 2015

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416*

Ave

rage

Pip

e C

ount

per

SD

R

BY THE NUMBERS

Inbound Reps: 2Outbound Reps: 11Pipe/Quarter/Rep: 24

Inbound: handle all inbound from non-DB3k accountsOutbound: handle inbound & outbound efforts for DB3k


MARKETING EFFICIENCY

2013 2014 2015 2016*0%

20%

40%

60%

80%

100%

PIPELINE GENERATED COST PER OPP

* CALCULATED FORFIRST HALF OF YEAR

Baseline

+50%

+150%

+250%


SALES EFFICIENCY

MQL SAL PIPELINE CLOSE

82%

49%

24%

96%

64%

42%

ñ17%

ñ51%

ñ75%


OTHER METRICS TO WATCH

§ Account Engagement§ Account Penetration§ Target Accounts on Website§ Conversion from Target Accounts

Think of these as indicators of your success


Good news is, you have an ABM strategy! So many companies make the mistake of buying technology in advance of a strategy, which leads to frustration and an inability to show ROI on the technology purchases!

We’ve got a basic strategy in place, but I can tell that we’re going to need some technology to scale our efforts and see the results we’re hoping for. Where do we start?

-Director, Marketing Ops


You cannot buy your way into an ABM strategy

ABM + TECHNOLOGY


BUT…TECHNOLOGY CAN HELP!

§ Infrastructure: how do you track and execute your ABM strategy?

§ Account Selection: how do you get the RIGHT list in place?

§ Engagement: how do you get a relevant message to your targets?

§ Sales Enablement: Marketing’s done their job, how do you make sure Sales gets it over the finish line?

§ Measurement: How do you know what’s working? What’s not? What’s next?

KEY TAKE AWAYS

• Set expectations around the goals of your ABM Strategy

• Get your leadership team in alignment around it

• Build a list that will satisfy your revenue goals but also not spread resources too thin

• Only engage in tactics that can reach that list

• The efficiencies realized are company wide

• Once you have a strategy, select technology to support your efforts

#ExpertABM

Q&A