Account Based Marketing 2.0: An Integrated Approach to Growth & Innovation

Account-Based Marketing 2.0: An Integrated Approach to Growth and InnovationRob Leavitt Senior Vice President, ITSMA

ITSMA Masterclass for Great Indian IT Marketing SummitBangalore, India | February 21, 2017

ITSMA Masterclass for Great Indian IT Marketing Summit | Bangalore, India | February 21, 2017 | PN5807 © 2017 ITSMA. All rights reserved www.itsma.com 2

What will we learn in today’s session?

• ABM principles and approaches• Why ABM is so important in 2017• How you can begin to create an ABM

strategy and plan• How companies are implementing,

managing, and measuring ABM


ITSMA and ABM: A long history of research, education, and advisory support

ITSMA ABM Council

ITSMA Marketing Excellence Awards2016: Accelerating Growth with ABM

ITSMA’s Account-Based MarketingSM Certification Program • 8−9 March 2017 | Cookham, Berkshire • 12-13 July 2017 | Boston, MA


Our new ABM book will be available in March!pre-order via Amazon

https://www.amazon.com/Practitioners-Guide-Account-Based-Marketing-Accelerating/dp/0749479892/ref=sr_1_1?ie=UTF8&qid=1483982777&sr=8-1&keywords=bev+burgess.


Defining account-based marketing


Account-Based Marketing is on the rise!1993Don Peppers and Martha Rogers publish their seminal book, The One to One Future

1997CSC launches full-court press pursuit marketing, lands two highly visible 10-year outsourcing contracts worth approximately$170 million

2004ITSMA publishes ground-breaking paper, Account-Based Marketing: The New Frontier

2007ITSMA introduces Three-Phase Model for ABM development

2013ITSMA introduces the first Certification Program for Account-Based Marketers


A simple definition: “Treating individual accounts as markets of one”Core principles:

1. Client centricity and insight2. Partnership between sales and marketing3. Focus on reputation and relationships, not just revenue4. Tailored programs and campaigns


Inves

tmen

t & RO

I per

acco

unt

High

Low

One to many accounts

One to few accounts

One to one accounts

Strategic ABM

ABM Lite

Programmatic ABM

Early success, new thinking, and new tools have led to the emergence of three types of ABM


Why bother with ABM?


Buyers are overwhelmed: Marketers need to focus on the new 4Ps

Personalized Proactive

ProvenPeer influenced


Customers view us more as a trusted partner/advisor than a vendor

Customers have broader awareness and understanding of our offerings and strategy

Increased customer satisfaction because of a more tailored approach

Customers feel better understood as a result of the in-depth analysis we do

76

61

29

27

Key benefits of ABM for customers

What are the key benefits of your ABM program for customers?% of respondents (N=62)

Note: Multiple responses allowed.Source: ITSMA Account-Based Marketing Survey, October 2013


Sales uncovers more new opportunities within accounts

Increased account penetration: wallet share, revenue, and margin

Sales is able to have richer conversations with customers

More consistent and aligned BU/brand/offer messaging into accounts

Improved marketing and sales alignment

Sales is viewed as a trusted advisor

More sole-sourced opportunities

More referenceable accounts

Shorter sales cycles

Other

57

57

48

45

42

11

8

7

3

2

Key benefits of ABM for sales people and account managersWhat are the key benefits of your ABM program for sales?% of respondents (N=62)

Note: Multiple responses allowed.Other includes: Increased investment dollars spent on business developmentSource: ITSMA Account-Based Marketing Survey, October 2013


Source: ITSMA Account-Based MarketingSM Survey, March 2016

of companies say ABM delivers higher ROI than for other types of marketing

84%


Defining and aligning ABM strategy


How ABM relates to overall marketing strategy

Brand marketing(All audiences)

Segment Marketing (e.g., All retailers)

Programmatic ABM (Named retailers)

ABM Lite(Cluster of key retail accounts with similar

issues)

Strategic ABM

(Top retail accounts)


Pursue Major Opportunities

Develop New Accounts

Change Perceptionsor Positioning

These are the key contexts where ABM is most successfully implementedImprove Account Penetration, Uncover Opportunities for Cross-Selling/ Upselling


Few companies are implementing all three types

49% 1 Type only

39% 2 Types

12% all 3 Types12613

21

14

16

20Strategic ABM only

ABM Lite only

Programmatic ABM only

Strategic ABM and ABM Lite

ABM Lite and Programmatic ABMStrategic ABM and Programmatic ABM

All three types of ABMNote: Differences are statistically significant.Source: ITSMA Account-Based MarketingSM Survey, March 2016

Types of ABM Implemented% of respondents (N=88)


Source: SAP, 2016 ITSMA Case Study, Strategic ABM at SAP Driving growth and relationships with key accounts, CS0041

Industry example: ABM program journey


Strategic ABM ABM Lite Programmatic ABMPrimary objectives 1. Change perceptions

2. Build relationships3. Identify opportunities

1. Build relationships2. Identify opportunities

1. Generate leads

Account focus 70% existing30% new

56% existing 44% new

51% existing49% new

Avg. accounts in program 19 85 N/A

Average accounts per ABMer 4 22 N/A

Top tactics • One to one meetings• Account-specific

thought leadership• Innovation days• Executive engagement

plans• Private events

• One to one meetings• Email marketing• Executive engagement

plans• Custom collateral• Reverse IP/digital

advertising

• One to one meetings• Email marketing• Executive engagement

plans• Custom collateral• Reverse IP/digital

advertising

Source: ITSMA Account-Based MarketingSM Survey, March 2016 (N=112)

Let’s compare the three types of ABM


Strengthening sales engagement


How do we select the right accounts?

Develop for income(Programmatic

ABM)

Harvest or divest(segment/

mass marketing)

Divest(mass marketing)

Invest selectively for growth

(Strategic ABM,ABM lite)

Develop selectivelyfor income

(ProgrammaticABM)

Harvest(segment/

mass marketing)

Invest for growth(Strategic ABM)

Invest selectivelyand build

(Strategic ABM,ABM lite)

Develop selectively(Programmatic

ABM)

L M H

H

M

L

Account attractiveness

Relative business strength


The seven-step ABM process

1Knowing what is driving the account

2Playing to the clients’ needs

3Mapping & profiling stakeholders

4Developing targeted value propositions

5Planning integrated sales and marketing campaigns

6Executing integrated sales and marketing campaigns

7Evaluating results and updating plans


Sample ABM campaign plan (financial services)Business imperatives/ initiative Solution

Target stakeholders

Marketing campaign objectives Activity/campaign Resources

Expand Globally• Create infrastructure environment to support multiple currencies, languages, etc.• Create streamlined platform for on-boarding process

ABC Solution • VP of ABC Business Unit• IT Infrastructure team

• Establish XYZ as a Thought Leader in financial services globalization Issues• Articulate XYZ commitment to Financial Services industry and Customer Globalization needs• Demonstrate that XYZ technology can support globalization demands and is easily integrated with Partner technology

• Sponsor financial industry survey and report • Email announcing survey/inviting XYZ input• Sales calls to arrange survey-related interviews • CTA: Attend IDC/Globalization Roundtable• Email follow-up with further survey results• Invitations for private briefings

• List of key people and required budget


Content and messaging customization

Different tiers of ABM support different levels of customization

Individualized

Personalized

Persona-based

Industry or

segmentRole- based Generic


Q1 Q2 Q3 Q4

Client interview

Account Innovation Day

Account /opportunity microsite

Customized Webinar #1

Account breakfast briefing

Roadshow/lunch & learn

Stakeholder mapping

ABM workshop

Account assets—presentation, battlecard, infographics, videos, case studies

Channel relationships

Regular reuse of marketing initiatives

Event/hospitality

ABM Kickoff Call/Meeting

Sponsored Activity

Client Partnership Review Document

Customized Webinar #2 Account Review

ABM Account Insight

Integrated sales and marketing campaign


ABM Lite campaign: 8 automotive manufacturers generates $31m pipeline


Industry example: Contents of an internal ABM playbookWhat is ABM? Our approach Next steps• Definitions• Why is ABM important

now?• Underlying principles of

ABM• The benefits ABM

delivers

• Integrating ABM with our sales model

• ABM step by step• The role of the ABM-er• Tools and templates

• Getting started• Key contacts by region


Managing ABM programs


Your ABM Journey

Pilot• Determine pilot

accounts• Develop metrics • Research and analyze

pilot accounts• Build integrated account

plan and execute• Measure and review• Publicize results

© 2017 ITSMA. All rights reserved.

Build• Gather learnings from

pilots • Refine account selection

criteria• Begin defining common

metrics and success criteria

• Identify funding sources and resources

• Create growth criteria• Deepen executive

sponsorship

Standardize• Create PMO and

governance model• Determine standard

metrics and success criteria across all accounts

• Develop staffing process• Integrate ABM into the

overall reward/recognition system

Scale• Achieve economies of

scale through standard processes, shared services, and automation

• Create ABM knowledge management system

• Leverage ABM practices in other areas of marketing


Companies with centralized governance and program management are more likely to be perceived as strategic and meet expectations

ABM is widely understood to be a strategic program, rather than tactical sales support

ABM is widely understood to be a corporate, revenueacceleration program, rather than a marketing program

Our approach to ABM is grounded in a deep understanding of the client’s business needs rather than developing

and executing custom marketing communications

4.1

3.5

4.3

3.8

2.9

3.4

No GC/ PMO (N~8)Have GC/ PMO (N~8)

To what extent do you agree with the following statements? Mean rating

Source: ITSMA’s Account-Based MarketingSM Survey Benchmarking Study, 2014

1Stronglydisagree

5Strongly

agree

Note: Mean rating based on a 5-point scale where 1=Strongly disagree and 5=Strongly agree.

Mean rating


Skills Matter! ITSMA’s ABM Competency Model Career path

Market and account intelligence

Account relationships and strategy

Tailored value propositions

Marketing communications

Business acumen

Leadership

Cross-organizational collaboration

Workstyle


ABM technologies… if you have the foundation


Measuring ABM impact


KPI dashboard Relationships Revenue Reputation

Top metrics • Coverage: number of relationships across accounts; new executive contacts

• Engagement: event attendance, campaign response rates, number of meetings

• Strength of existing relationships—negative/ neutral/positive

• Pipeline growth• Revenue growth• Deal size and type• Portfolio penetration• Total revenue tied to

ABM activities• Share of wallet• Win rate

• Sales and account team satisfaction

• NPS• Brand perception• Success story references

and advocates

An illustrative ABM program dashboard


Source: ITSMA Account-Based MarketingSM Survey, March 2016 (N=112)

` Strategic ABM ABM Lite Programmatic ABMTop metrics • Pipeline growth

• Revenue growth• Sales satisfaction• Client engagement• Customer satisfaction

and loyalty

• Pipeline growth• Revenue growth• Sales satisfaction• Win rate• Revenue tied to ABM

• Pipeline growth• Revenue growth• Client engagement• Revenue tied to ABM

ROI higher than any other marketing

92% 68% 67%

The three types of ABM favor different metrics


Source: SAP, 2016, ITSMA Case Study, Strategic ABM at SAP Driving growth and relationships with key accounts CS0041

Metric 2014 2015Marketing pipeline touched $209M touched, $27.6M closed $448M touched, $75M closed

Marketing progressed pipeline $57M touched, $30.3M closed $107M touched, $54M closed

New opportunities created 49 for $27M in new pipeline 48 for $40.5M in new pipeline

New line of business (LOB) contacts

1,200 1,420

SAP’s ABM results

Program metrics at SAP


Good account or sales team feedback is your most useful metric “Before we began using account-based marketing, I worked with Marketing in purely tactical, reactive ways, like asking for the latest collateral. Now I engage them proactively at the start of a client engagement.” Xerox Global Account Team Sales Leader

“This account-based marketing focus has been useful. We are helping the account team focus on the customer’s needs as opposed to focusing on what we want to sell them.” Xerox Global Account Team Sales Leader

http://www.xerox.com/


Client feedback is the ultimate KPI

“I am really glad I have done this interview as it has made me realize what a sea change there has been in my thinking regarding COMPANY A, since taking on this new role.”COO, UK Financial Services Company

“This attitude of really working to understand our issues, checking back with us, putting your in our shoes, and coming up with solutions, gets a ten out of ten from me.” CFO, Global Media Company


Any questions or comments?


1. There are many flavors of ABM: decide up front which type or types are right for your business

2. For ABM program success you can never spend enough time creating interest and buy-in from the business

3. Powerful ABM comes from close engagement and alignment with sales

4. When the business demands more, use technology to scale your ABM program

5. Measure and communicate your ABM successes right from the start to give yourself the best chance of delivering amazing ABM ROI

#ITSMA17 #ABMpower

Tweetable takeaways for ABM program success


Thank youRob LeavittSenior Vice PresidentITSMA [email protected] +1 508 654 7181 @RobLeavitt

mailto:[email protected]