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Presented by
Account-Based Marketing: Beyond the Hype
Jillian RyanAnalyst
November 17, 2016
© 2016 eMarketer Inc.
Account-Based Marketing, Defined
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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?
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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
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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
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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)
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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.”
—Tyler Lessard, CMO, Vidyard
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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
Source: SiriusDecisions, April 2016
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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%
Source: SiriusDecisions, April 2016
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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?
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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.”
—Tyler Lessard, CMO, Vidyard
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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
At B2Bs, Account-Based Marketing Trends Upward as Technology Plays Bigger Role
B2B Sales Enablement: Driving Strategic Efficiencies Along the Path to Purchase
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