eMarketer Webinar: Account-Based Marketing—Beyond the Hype

© 2016 eMarketer Inc.

Presented by

Account-Based Marketing: Beyond the Hype

Jillian RyanAnalyst

November 17, 2016


Account-Based Marketing, Defined


What exactly is ABM?

Strategic, collaborative approach between marketing and sales to identify, target and convert accounts

Target companies are prioritized by lifetime value Focuses on key decision-makers within those accounts Customized content is required and created through deep

background research Emphasizes quality over quantity Difficult to scale without the right technology

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ABM objectives are variedWhat are your goals for account-based marketing?

Revenue Generation: 25%Pipeline Acceleration: 22%Lead Generation: 20%Sales and Marketing Alignment: 17%

Source: #FlipMyFunnel, April 2016

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There are many different types of ABM

Strategic ABM

ABM Lite

Programmatic ABM

1:1 Accounts

1:Few Accounts

1:Many Accounts

Low

High

Inves

tmen

t and

ROI p

er Ac

coun

t

Source: ITSMA

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ABM responsibilities span across the organization, but all focus on building knowledge around accounts and executing a content and engagement plan to speak to contacts within the account

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Not just for prospecting, ABM is for cross-sell and upsell too

“At Lionbridge, we are focused on cross selling and upselling existing accounts. I know a lot of other companies in this space use ABM as a prospecting activity, but for us it’s completely a customer-driven initiative. We pick really large strategic accounts and customize every campaigns and communications.”

—Jessica Sousa, Senior Manager, Customer Marketing, Lionbridge

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How Hot Is ABM, Really?


ABM adoption hasn’t reached a tipping point

47%of US B2B marketers have an ABM strategy

in placeSource: Demand Gen Report, August 2016

33%of US B2B marketers are investing in ABM

in 2016Source: Kapost, May 2016

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But ABM is still pretty new …

Nearly 60% of US B2B marketers have had their ABM strategy in place for a year or less

Only 25% have been doing ABM for two or more years

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About a third of US B2B marketers aren’t currently doing ABM but plan to launch a strategy in the next 18 months

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ABM only gets a small percentage of marketing budgets

What percentage of your marketing is ABM?

25% of budget: 35.4%50% of budget: 18.2%75% of budget: 9.5%

All of our marketing is ABM: 4.4%Source: Bizible, Heinz Marketing, Radius, ReachForce and Uberflip, October 2016

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Still, some are going all-in on ABM

“Our marketing team is dialing up its account-based marketing. It is our top priority. We’re pivoting the entire marketing function to be aligned to the top 50 accounts we’re prospecting.”

—John Anagnost, Senior Director, Sales Strategy and Enablement, Rocket Fuel

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ABM has always been here, it’s just called something new

“It’s funny that ABM is a buzzword all of sudden, but we have been doing this for years. You just didn’t call it account-based marketing. For whatever reason, marketers have rebranded it as this new thing.”

—Jessica Sousa, Senior Manager, Customer Marketing, Lionbridge

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Marketing Automation and Technology:

The Building Blocks of ABM at Scale


Marketing automation, defined:

Software platforms and technologies used to automate

numerous steps along the path to conversion, including

campaign management, customer segmentation, and

lead generation, nurturing and scoring to efficiently

market via diverse channels.

Source: eMarketer, April 2016

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B2B marketers embrace automation

36% 38%call their marketing automation usage

advanced

30% say it’s intermediate

call their CRM/sales automation usage

advanced

33% say it’s intermediate

Source: Progress and Dimensional Research, September 2016

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80% 74%of B2B marketers use sales force automation for

ABM

use marketing automation

Source: SiriusDecisions, April 2016

Automation is needed for ABM at scale

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ABM is considered an “effective” use of marketing technology and data

31%of US B2B marketers

said ABM is the most effective use of

marketing dataSource: Openprise, June 2016

31%of marketers worldwide said ABM is a martech tactic their company

uses effectively Source: Ascend2, October 2016

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Continued scale will take more than technology developments While 69% of B2B

marketers said adding tech to automate ABM will help scale, 77% believed that developing tools and templates to facilitate reuse and best practicing sharing is also critical

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Tech is a barrier to ABM, but not the biggest oneReasons B2B marketers do not use ABM

Other initiatives have higher priority: 45%Don’t have necessary skills/expertise: 36%

Cost/budget constraints: 34%Don’t have necessary technology: 23%

Source: Account-Based Marketing Consortium and Demand Metric, December 2016

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Some experts say ABM can’t be automated

How can you automate something that requires a personal engagement to understand the relationship and plan communications?

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Working with Sales and Data Sources for Account

Identification


ABM should enable marketing to work more closely with sales 83% said sales helped

determine the list of target accounts in 2016, up from 75% YOY

Fewer respondents reported sales providing feedback on ABM plans and using marketing support to do their own account outreach in 2016

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Account-based lead scoring is becoming commonplace More than four in 10 US B2B

enterprise marketers score leads with account-based criteria, such as:– revenues– employee count– industry

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Account-based indicators are used to determine best customers There are many

account-based indicators used by US B2B marketing/sales professionals to define their best customers

The two most common are: – annual spend (61%) – length of relationship (52%)

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Account scoring is based on attributes of current best accounts

“We work with sales to understand the attributes of accounts that are converting the best. That’s a mix of firmographics and demographics, and we do account scoring based on 20 different attributes—things like company size, industry, revenue, employees and what other technologies they currently use.”

—Tyler Lessard, CMO, Vidyard

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B2Bs use multiple data sources to learn about accounts In 2015, noncustom

third-party account and contact information sources were the primary ways B2B marketers worldwide got data for ABM

Predictive analytics was used by only 21%

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And in 2016, B2Bs are working toward more sophisticated approaches to data for ABM

44%of B2B marketers

worldwide are using custom third-party

account info sourcesSource: SiriusDecisions, April 2016

30%are using predictive

analytics services for ABM

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Predictive analytics helps assess and prioritize accounts

“With a predictive score, we know which accounts and which decision-makers within that account to target. Then we execute our marketing against those accounts to drive pipeline.”

—Rishi Dave, CMO, Dun & Bradstreet

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Still, having the right data remains a challenge for many companies Only 31% of B2B sales

professionals have access to the right data for ABM; 24% of marketers said the same

The majority of marketers and sellers said they are building toward having access to the right data

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Personalized Communication with Accounts

(and Decision-Makers)


Content delivered within ABM is targeted and personalized Targeted content is

tailored by specific industry (75%) and role (51%)

49% delivered ABM content that is personalized/custom to each account

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Constructing messages based on relevance

“ABM is a different lens for targeting accounts and building a holistic content strategy, as opposed to just one-off tactics. We do direct communications, personalized messaging and even create a custom video for each account.”


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Customers appreciate more tailored messages, and in turn can be better internal advocates

“A lot of times B2B marketers are too generic. And the receiver of that content doesn’t feel like it fits them or it doesn’t help them make the leap to action. But very tailored assets within ABM makes the intended recipient more comfortable because it’s very customized. This enables that person to further influence within their own organization because it’s easier to push that information forward.”

—Danny Nail, Senior Director, Global Account Based Marketing, SAP

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Third-party content support on the rise for ABM

37% 28%plan to use an agency

for ABM support on content and

messaging in 2016

23% did so in 2015

plan to use third-party content

development in 2016

3% did so in 2015



Targeted offers are most commonly delivered to an ABM list via email 96% currently use email to

deliver targeted offers to their ABM list

Other delivery methods:– account-based nurture– teleprospecting– automated sales enablement

platform– personalized website content

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Reverse IP lookup helps with web and content personalization

Reverse IP technology, which can detect thecompany (account)

a website visitor works for, is a

common ABM tool

Web Web PersonalizationPersonalization

52%52%


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Account-based advertising is also on the rise

B2B marketers using account-based advertising:

Planning to invest: 70.0%2016: 66.4%2015: 62.7%

Source: SiriusDecision, April 2016

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What About Return on Investment?


ABM is a mixed bag when it comes to effectiveness

On a scale of 1 to 5, nearly 40% of US B2B marketers—the largest share—rated their ABM efforts’ effectiveness a 3

Only 5.7% called their efforts “extremely effective”

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ABM is considered an important strategy for generating revenue Seven in 10 B2B marketers

in North America said ABM was one of the most important strategies for generating revenue compared to other options

Only 10% said it was the most important

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But how does ABM translate to real revenue? Half said their change in

revenue due to ABM was “favorable, but not measured”

Only 7% said they saw revenues increase at least 25%

Another 22% didn’t know if revenues changed due to ABM

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ABM metrics are still subjective In 2016, the most common

metric used to measure ABM success is feedback from internal stakeholders, used by 76%

The number of closed deals, number of leads touched by marketing, and new contacts identified for ABM accounts were KPIs used by six in 10

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B2Bs can benchmark ABM conversion rates vs. traditional efforts for measurement

“We look at conversion rates on accounts targeted with ABM practices as opposed to more traditional marketing. And we look at speed and starting to see good patterns in velocity of those deals moving forward.”


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Companies with larger contract values have most success with ABM

“ABM really makes sense for the companies that have larger contract values that are focusing on a few thousand companies.”

—Phil Hollrah, Vice President, Product Marketing, Demandbase

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Beyond the hype, recapped: ABM, the practice of identifying, targeting and marketing to

accounts, is hot, but adoption is still pretty limited. Marketing automation, technology and data are critical

components needed in place for B2Bs doing ABM at scale. A strategic collaboration with sales teams allows for marketers to

determine the best target accounts. Delivering customized content to decision-makers within target

accounts means messages are based on research and relevance. Measuring return on ABM is still a work in progress, but many call

the results favorable.

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Anastasia Pavlova, Sr. Director of Marketing, Marketo, @digijinni

Marketo Solves the ABM Dilemma

Multiple Point Solutions Marketo: ABM Essentials, Single Platform

vs.

Error-prone account list syncingCentral account targeting & management

Different apps for each ABM channel

Cross-channel campaign orchestration

Data stitched together across systemsConsolidated ABM analytics

MARKETO ENGAGEMENT MARKETING PLATFORM

INBO

UND

ACCOUNT

BASEDPAIDMEDIA DIRECT

TARGET ENGAGE MEASURE

INBO

UND

ACCOUNT

BASEDPAIDMEDIA DIRECT

A Single, Unified Platform for Lead Management + ABM

1. All of the essential ABM capabilities2. A single, unified platform for ABM &

Lead Management3. Supported by an ecosystem of ABM

partners

Result: Shorter learning curve, faster time to value and stronger marketing ROI

Why Marketo ABM?

Anastasia Pavlova@digijinni @marketo #MKTGNation


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Jillian RyanAnalyst

Account-Based Marketing: Beyond the Hype

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Predictive Analytics in B2B Marketing: Using Data Decisively, at Every Stage of the Funnel

Marketing Technology: The Six Developments That Matter the Most in 2016

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