HOW ABM CAN HELP B2B MARKETERS COPE WITH THIS NEW REALITY

BRIAN FINNERTY, VP GROWTH MARKETING, DEMANDBASE

APRIL 2020

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THE ECONOMY WAS DECLINING… BEFORE COVID-19

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MARKETING BUDGETS WERE FALLING- BEFORE COVID-19

Marketing budget as a percentage of company revenue

2015 2016 2017 2018 2019

7%

14%

11.4%12.1%

11.3%11.2%

10.5%

SOURCE: 2019 Gartner CMO Survey

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THE EFFICIENCY GAP

+250%

+150%

+50%

2017 2018 2019 2020

EFFICIENCY GAP

Pipeline Count

$/Pipe Opp

ABM EFFICIENCY VS TRADITIONAL DEMAND GEN

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FOCUSING ON VOLUME WASTES TIME AND MONEY

4.4% Inquiries convert

.03% Inquiries to closed/won

Source: Sirius Decisions Waterfall

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LEADS AREN’T VALUED

50%of marketing generated

leads are never followed up by sales.

Source: Miller Pierce

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THE IMPACT OF ABM

ABM outperforms traditional methodsB2B marketers are realizing great benefits from ABM across multiple areas

1

Customer Retention Rate

Initial Contract Value

Close Rate

Return on Sales & Mktg. Investment

Upsell/Cross-sell

Overall LTV

Alignment Between Sales & Marketing

1.5 2 2.5 3 3.5 4 4.5 5

Traditional approach benefit is much greater

ABM and traditional are same

ABM provides much greater benefit than traditional approach

4.64

4.31

4.20

4.14

4.02

4.00

3.98

Source: 2018 TOPO Benchmark

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EFFICIENCY IMPROVES ACROSS SALES AND SDRs

HOW TO INCREASE EFFICIENCY OF YOUR ABM STRATEGY

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5 TIPS TO INCREASE MARKETING EFFICIENCY WITH ABM

1. Focus your budget on the right accounts2. Tighten your alignment with sales3. Use technology to scale4. Intent is your friend. Use it! 5. Shave $$ from unfocused/less efficient channels

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THE THREE TIERS OF ABM

One-to-One ABM

One-to-FewABM

One-to-ManyABM

HIGH

Investment & ROI per account

LOW

Source: ITSMA and ABM Leadership Alliance Account-Based Marketing Benchmarking Survey, July 2017

1

TIGHTEN YOUR ALIGNMENT WITH SALES

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ALIGNING SALES AND MARKETING

KEY TO MARKETING’S SUCCESS IS SALES ENABLEMENT

1. Account List Identification2. Campaign Ideation3. Prioritization and Selection4. Messaging5. Execution6. Sales Enablement7. Goals & Reporting

2

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TIGHTEN YOUR ALIGNMENT WITH SALES

MARKETING

SALES

DM Ships

Campaign Ideation, Scope

& BudgetCampaign

Kickoff

Account-Based Advertising

LaunchContent

Development

Landing Page

Launch

Content Asset

Launch Webinar Field

Event

Account & Contact

SelectionCampaign

KickoffDM

ShipsContent Asset

Launch Webinar Field

Event

Marketing Email 1 & 2

Marketing Email 3

Marketing Email 4

Sales Email 1 & 2

Sales Email 3

2

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ADD MORE OPPORTUNITIES FOR IDEA SHARING

▪ Funnel Working Group▪ Sales and marketing leaders meet weekly to review key pipeline metrics

and discuss challenges▪ Marketing Ops led

▪ Customer Working Group▪ Customer success and marketing leaders meet weekly to review retention

and upsell metrics and discuss challenges▪ Customer Marketing Manager led

▪ Sales and Marketing Exchange▪ 30 minute check in with sales to discuss market developments▪ CMO led

2

USE TECHNOLOGY TO SCALE

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USE TECHNOLOGY TO SCALE 3

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3

INTENT IS YOUR FRIEND. USE IT!

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Ensure you are investing

appropriate $$ per account

Use intent to target accounts

in the buying cycle

Make every engagement

more relevant and personalized

Understand impact of cuts

you made

FOCUS ON DATA AND INSIGHTS 4

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Total Addressable Market

Target Account List

High Intent Buyers/

Influencers

AI AND INTENT TO REACH THE BUYING COMMITTEE

High Intent Accounts

Ideal Customer Profile

4

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USE INTENT TO FOCUS AD BUDGET

TEST GROUP WITH ADS

CONTROL GROUPNO ADS

% DIFFERENCE

High Intent Acct’s 73% 52% + 1.4X

Medium Intent Acct’s 60% 28% + 2.1X

Low Intent Acct’s 44% 17% + 2.6X

4

SHAVE $$ FROM LESS EFFICIENT CHANNELS

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OPTIMIZE YOUR BUDGET

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

$465kFULL BUDGET

CONTENT SYNDICATION

WEBINAR SPONSORSHIPSDIGITAL ADVERTISING

REGIONAL EVENTS

SAVING BY ABM APPROACH

$243kFULL BUDGET

Standard B2B Marketing Spend

ABM OptimizedSpend

5

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TRADITIONAL DIGITAL ADVERTISING

Purchasing Digital Ads from Publishers or Public Exchanges

$50K / quarter7MM impressions

BEFORE ABM METRICS

$200K total spend15% Target Accounts Engaged

DIGITAL ADVERTISING

ACCOUNT-BASED ADVERTISING

Targeting Ads to Specific Companies Across all Networks

$30K / quarter5MM impressions

AFTER ABM METRICS

$120K total spend25% Target Accounts Engaged

67PERCENT

40PERCENT

More EngagementLess Spend

TARGET ACCOUNTS ENGAGED

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REGIONAL EVENTS (FIELD MARKETING)

ACCOUNT-BASED FIELD MARKETING

Hosting events in high priority territories

9 events / year 540 regs / year 45 Opptys / year (5 / event)

AFTER ABM METRICS

$63K total spend$1400 Cost per Oppty

FIELD MARKETING

Hosting events in every territory

15 events / year @ $7K each600 regs / year 45 Opptys / year (3 / event)

BEFORE ABM METRICS

$105K total spend$2333 Cost per Oppty

Less Spend Increased Results Per Event

FOCUSING ON REGIONS WITH HIGHEST ACCOUNT CLUSTERS

40PERCENT

60PERCENT

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5 TIPS TO INCREASE ABM EFFICIENCY

1. Focus your budget on the right accounts2. Tighten your alignment with sales3. Use technology to scale4. Intent is your friend. Use it!5. Shave $$ from unfocused/less efficient channels

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BONUS TIP:

DON’T USE BUDGETS AS AN EXCUSE TO NOT INNOVATE

THANK YOU