preview slides: a business case for account-based marketing

The Business Case For Account-Based Marketing

A Guide to Best Practices for Planning, Budgeting and Running ABM Display Programs

Contents

3 Introduction -What is ABM? -Why ABM Now? Planning Your ABM Initiative -Moving to ABM at Your Company -Understanding How Sales and Marketing is Organized -Four Key Investment Areas Kwanzoo’s ABM Program Budgeting Model -Mapping Accounts to ABM Program Investment -Recommended ABM Programs and Budgets by Band -The Global ABM Program Budgeting (APB) Process -Tracking Program Investment Running an ABM Display Program -ABM Display Program Options -Measuring ABM Display Success Sample ABM Display Budgets -Explaining the Kwanzoo Model -$7500 Pilot ABM Budget -$30,000 Budget for ABM Job Title Targeting -$50,000 Budget for ABM IP Targeting -Sample Budgets by Accounts Targeted per Program Case Study Summary

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What is ABM?

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“Account-based marketing (ABM) is the strategic approach marketers use to support [sales around] a defined universe of accounts, including strategic accounts and named accounts.” SiriusDecisions

Account-based marketing allows you to reach, engage, and influence key users at your target accounts. ABM better aligns marketing with sales and revenue. Marketing efforts are united with sales goals yielding more opportunities from qualified accounts and qualified leads of higher quality. Analysts and B2B companies are both reporting higher ROI from ABM programs.

ABM today is being deployed by many B2B companies using a six step process: 1. Account Strategy & Planning 2. Account and Contact Selection and Coverage 3. Insights That Drive Account-Relevant Messages 4. Account Specific Interactions [Across Online & Offline Channels] 5. Account Focused Plays Across Sales & Marketing 6. Account-Based Analytics & Measurement

#ABMDoneRight

Why ABM Now?

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80% of marketers measuring ROI say that ABM outperforms other marketing investments ITSMA B2B organizations with tightly aligned sales and marketing operations achieved 24% faster three-year revenue growth and 27% faster three-year profit growth SiriusDecisions ABM had higher ROI than other marketing activities, according to 97 percent of marketers in a survey Alterra Group

#ABMDoneRight

“Building a successful ABM practice requires proper planning, alignment, communication and a substantive change in mindset.”

Matt Senatore , Research Director SiriusDecisions

Moving to ABM at Your Company

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:

Define Scope &

Budget

CMO + Head of Sales

Marketing &

Sales

Sales & Marketing Initiated

Management Initiated

Launch Program

Launch Program

There are two scenarios playing out today at B2B companies that lead to an ABM initiative. The first is one where Marketing and Sales make the case for ABM in a middle-and-up approach. Marketing & sales team leaders push for a pilot program that is launched once the budget is approved by the CMO and/or the Head of Sales.

The second scenario is driven at trailblazing B2B companies by visionary CMOs and Heads of Sales. ABM here is Management Initiated with quick buy-in from the CEO. Leadership allocates budget and defines scope for the initial ABM program. It is then adopted top-down by Marketing and Sales, who collaborate with the Leadership to set success metrics.

#ABMDoneRight

"Aligning sales and marketing requires a strong focus on desired 'outcomes' for both new-logo and revenue growth. ABM enables alignment, making it an important component of strategic demand generation at B2B organizations.”

Understanding How Sales and Marketing Are Organized

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Planning an ABM initiative requires a thorough understanding of your existing sales and marketing resources; their responsibilities, capabilities; and their motivators for driving success. Does your sales team include Named Account Managers who handle large global accounts? How many Account Executives (AEs) and Sales Development Representatives (SDRs) own accounts within each region? How are sales regions organized, within North America (NAM), and globally in EMEA, APAC, LTAM, and ANZ? Yes sales goes after active opportunities. Are you going beyond to help them map out say accounts owned and engaged by each Sales rep every quarter? What resources are available for pre-sales and solutions consulting, sales enablement, and sales operations support?

You must then take stock of your current marketing assets. At the corporate level what’s the split in roles across Demand Generation, Marketing Programs & Global Campaigns, Content Marketing, Marketing Operations, and Website & Marketing Analytics? On a regional level, how are you organized in Field Marketing and Sales Enablement? Once you have taken stock of your current Sales and Marketing organization, you can start planning your ABM Initiative…..

Adam Needles, CSO, Annuitas

#ABMDoneRight

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This Guide is Designed to Help You Plan, Budget, and Execute Your ABM Display Programs

Content:

- Physical and Virtual Events - Short Form Content - Long Form Content - Video - Blog Posts

Programs:

- Direct Mail - Tele-Prospecting - Display & Retargeting - Content Syndication - Third Party Webinars

Infrastructure:

- Marketing Automation - CRM - Predictive Analytics - Website Personalization - B2B Attribution

Data:

- Database Build-Out - Account Data Structures - Contact Data - Behavioral Data - Intent Data

Planning Your ABM Initiative: Four Key Investment Areas

#ABMDoneRight

How can you establish a

global ABM budgeting process?

Build Your Pyramids Manage Your Bands

Top Accounts Band (10s)

Growth Accounts Band (100s)

Wide-Net Accounts Band (1,000s)

Introducing the Kwanzoo ABM Program Budgeting (APB) Model

Mapping Accounts for ABM Program Investment: Key Considerations

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You first step in ABM program planning is mapping accounts into pyramids and bands. Each of your bands focuses on top accounts, growth accounts, or wide net accounts. The key factors that determine which band you map your account into are:

§  Revenue Potential (Pilot Deal, First Year Expansion, Lifetime Value)

§  Brand Value (With Acquiring Other New Logos) §  Account Engagement and Pipeline Stage §  Propensity to Buy (30/60/90/180 Days - Is the Timing Right?) §  Customer Net Promoter Score (NPS) - Likely to Grow Their

Spend §  ABM Data Quality (Reach and Coverage into Target Account) §  The Level of Personalization & Related Effort Needed

Top

Growth

Wide-Net

#ABMDoneRight

The Global ABM Program Budgeting (APB) Process

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Company APB

NAM APB (North America)

EMEA APB

APAC APB

We recommend thinking of ABM planning at a global or regional level, as building and managing ABM pyramids (of accounts) for the entire company or the specific region. Your CMO and Head of Sales “own” the Company APB. Your regional APBs are owned by the respective region’s Marketing and Sales Leaders.

#ABMDoneRight

Recommended ABM Programs and Budgets by Band

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Top Accounts: §  Very Customized, One-to-

One ABM §  Custom App(s) to Engage all

Key Account Stakeholders (Company, Customer)

§  $7.5K-$10K per account per quarter

§  Account Revenue potential; $1Mil+

Growth Accounts: §  “ABM at Scale” Accounts §  $300-$600 per account per

quarter (across programs) §  ABM Display: Budget $75-

$100 per account per quarter §  Display Ads + 1:1 SDR

Outreach (Email, Phone) to Qualified Accounts

§  Account Revenue Potential: $30K+

Wide Net Accounts: §  “ABM Extended” Accounts §  $150-$300 per account per

quarter §  3rd Party Emails, 3rd Party

Webinars, Content Syndication (1-2 targeted leads / account), Outsourced Tele-Prospecting

§  Account Revenue potential: $10K+

#ABMDoneRight

“Planning is a critical first step in an effective ABM program. Setting budgets and goals gives marketers a baseline to measure program success”

David Raab, Raab Associates

How do you track ABM display investment and measure success?

Tracking ABM Display Program Investment: The Kwanzoo APB Model

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EMEA APB for a B2B Company

12 Accounts

200 Accounts

1,345 Accounts

Unreachable (UN) – 28 (14% )

Programs Pending (PP) – 48 (24%)

Under Development (UD) – 32 (16%)

Active Programs (AP) – 62 (31%)

Converted Accounts (CA) – 30 (15%) Top Accounts

Growth Accounts

Wide-Net Accounts

The Kwanzoo APB Model allows you to keep track of all your accounts in a given band based on their maturity within the program lifecycle – from unreachable through display, to active programs, to converted from marketing to sales opportunities.

#ABMDoneRight

ABM Display Program Options

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ABM With IP Targeting ABM with IP Targeting (also known as ABM Global) allows you to serve ads to employees of your target accounts at a specific city, region, or country. The accounts are mapped to specific business IP address ranges. Ads are targeted to those IPs and shown to the account’s employees as they browse the web. ABM With Job Title Targeting ABM with Job Title Targeting (ABM JTT) allows you to serve ads to specific contacts at target accounts by identifying them using third-party cookies. The cookies are sourced through an onboarding partner such as OMC BlueKai. ABM Social ABM Social allows you to serve Ads to relevant contacts at target accounts identified through their Facebook and Twitter user handles. Using deep learning tech, you can increase B2B match rates on social from 5-15% today to over 35%, maximizing engagement with relevant contacts.

Why ABM Display?

ABM display is the most efficient way to drive awareness, increase engagement, and create sales opportunities from your growth accounts. With an ABM display program you can engage key stakeholders at your growth accounts using smart banners, in-banner form ads, and more to bring in prospects who have never even visited your website.

Your Ad

www.any-website.com

Your buyer at a target account finds your ad as they browse the web

#ABMDoneRight

Measuring ABM Display Program Success

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Ad Clicks Website Visits SDR Activity Pipeline Value

ABM Display Success

Control Accounts Test Accounts

Before running an ABM display program you must first identify your control and test accounts. You could setup both control and test as the same accounts to which programs are run over two different time periods (the test accounts receive display ads). Alternately your control accounts can be a separate yet similar set to your test account set, with programs run during an overlapping time frame.

Identify Control Accounts

Ex: 300

Identify Test Accounts

Ex: 300

Run Marketing Programs:

Emails, SDR 1:1 Emails, Webinars,

Live Events

Run ABM Display Programs

#ABMDoneRight

So what kind of ROI can you expect from different ABM display budgets?

Explaining the Kwanzoo Model for Measuring ABM Display ROI

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ABM Display Programs are used to generate opportunities from target accounts. Therefor you need to calculate a baseline opportunity from current SDR activity and measure your display program success in terms of its added opportunity.

8 Avg # of SDR

Appointments per Month

50% Appointments that

convert to Opportunities

$30K Average Deal Size

for a B2B Company

$120K Baseline Opportunity:

$120k x (#SDRs) x (# of Months)

A Additional Accounts

Engaged through ABM Display

B% Engaged Accounts that

Convert to Opportunities

$30K Average Deal Size

for a B2B Company

New Opportunities:

A x B% x $30K

New Opportunities from ABM Display

Baseline Opportunity

#ABMDoneRight

Proving ABM Display is Working – $7500 Pilot Budget

Tech Fee Media

Fee

Services

Cost Breakdown Ad Clicks Website

Visits Accounts Engaged

Pipeline Impact

200 41 16% 500

350 103 41% 1250 High High High High

Low Low Low Low

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With a $7500 pilot budget your best option is an ABM Job Title Targeting (cookie-based) program. Plan on reaching approx. 275 accounts with 500,000 ads over 3 months.

Measure your ad clicks and website visits based off the Click Through Rates (CTR) of your total ads served. Measure the percentage of website visits that result in unique accounts engaged. Measure the percentage of accounts engaged that result in true pipeline impact, i.e. new opportunities.

Based on past programs we have modeled the Low and High ranges for key metrics as follows:

Ad Clicks as % of Ads Served (CTR): 0.04% - 0.07% Website Visits as % of Ads Served: 0.1% - 0.25% Average # of Accounts to an SDR: 250

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Real Pipeline Impact for a B2B Company – $7500 Pilot Budget

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B2B Company Specs: Avg SDR Appointments per Month: 8

Avg Deal Size: $30,000 SDR Close Rate: 25%, 1 SDR

Pipeline Impact from $7,500 ABM Pilot Program:

16% - 41%

$360,000 Baseline Opportunity per

Quarter

$61k - $154k New Opportunities

per Quarter x 25% closed

$15k - $38k Program Value

2X - 5X ROI

41-103 Accts x 5% Opportunities x $30k $120k x 1 SDR x 3 Months

#ABMDoneRight

"One of the keys to ABM success is discipline. Having the will to focus on a defined set of accounts is hard for many sales and marketing teams. The best ABM programs have a laser focus on the named accounts and an unrelenting desire to measure, refine, and improve."

Nick Ezzo, VP of Demand Generation Host Analytics

ABM Job Title Targeting – $30,000 Budget

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With a $30,000 budget for ABM Job Title Targeting you can target approx. 715 Accounts and serve 1,287,000 ads to key influencers and buyers at target accounts. Your pipeline impact is 5X higher with larger budget.

Tech Fee

Services

Cost Breakdown

Media/Data Fee

Ad Clicks Website Visits

Accounts Engaged

Pipeline Impact

514 85 17% 1287


Low Low Low Low

#ABMDoneRight

Real Pipeline Impact for a B2B Company – ABM Job Title Targeting (JTT)

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Avg Deal Size: $30,000 SDR Close Rate: 25%, 2 SDRs

Pipeline Impact from $30k ABM JTT Program:

17% - 42%

$720,000 Baseline Opportunity per

Quarter

$318k - $795k New Opportunities

per Quarter x 25% closed $79k - $198k

Program Value

2.6X – 6.6X ROI

85-212 Accts x 12.5% Opportunities x $30k $120k x 2 SDRs x 3 Months

#ABMDoneRight

ABM is now possible at scale, as 100s of millions of data points on B2B users are easily aggregated in a unified Data Management Platform (DMP).

Niraj Deo, Senior Product Executive OMC | BlueKai

ABM IP Targeting (ABM Global) – $50,000 Budget

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With a $50,000 budget for ABM Job Title Targeting you can target 660 Accounts and serve 3,520,800 ads. Although you are targeting less accounts than you would with JTT, your reach is greater because the significant increase in Ads served.

Tech Fee

Services

Cost Breakdown

Media/Data Fee

Ad Clicks Website Visits

Accounts Engaged

Pipeline Impact

1408 145 19% 3520


Low Low Low Low

#ABMDoneRight

Real Pipeline Impact for a B2B Company – ABM IP Targeting (ABM Global)

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Avg Deal Size: $30,000 SDR Close Rate: 25%, 3 SDRs

Pipeline Impact from $50k ABM IP Program:

19% - 48%

$1,080,000 Baseline Opportunity per

Quarter

$409k - $1089K New Opportunities

per Quarter x 25% closed $108k - $272k

Program Value

2X – 5.4X ROI

145-363 Accts x 10% Opportunities x $30k $120k x 3 SDRs x 3 Months

#ABMDoneRight

Sample Budgets by Accounts Targeted per Program

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$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

500 1000 1500 2000 2500

Total Budget

Media Fees

Tech Fees

Service Fees

Job Title Targeting Budget

Number of Accounts

$5,000

$35,000

$65,000

$95,000

$125,000

$155,000

500 1000 1500 2000 2500

Total Budget

Media Fees

Tech Fees

Service Fees

IP Targeting Budget

Number of Accounts

More Precision, Less Reach More Reach, Less Precision

#ABMDoneRight

Case Study: Late Stage Software Company $50M - $75M Global ABM IP Targeting – Net New Prospecting and Customer Upsell

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12,000+ Global Growth Accounts North America (NAM), EMEA, and APAC

NAM: 9000+ 900+ Active with

ABM IP

EMEA: 2000+ 700+ Active with

ABM IP

APAC: 1000+ 200+ AcGve with ABM IP

1000+ NAM Customers

Prospecting

100+ Accts in ABM IP

Upsell

North America (NAM) APB - Growth Band

Total Accounts: 8901

Unreachable (UN) – 161 (1.8%)

Programs Pending (PP) – 7540 (84.7%)

Under Development (UD) – 200 (2.2%)

Active Programs (AP) – 988 (11.1%)

Converted Accounts (CA) – 12 (0.2%)

#ABMDoneRight

Summary

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Understand How Sales is Organized and Key Sales Metrics

Map Your Accounts into ABM Pyramids and Define Spend

Prioritize ABM Display Programs Towards Your Growth Accounts

Implement the Kwanzoo APB Model to Track Accounts Until They Convert to Opportunities

Develop a Clear Process for Measuring ABM Display Success

Start With Pilot Budgets and Scale Over Time

The Kwanzoo APB Model with Pyramids and Bands Makes It Simple to Build and Manage Global ABM Display Programs

Top

Growth

Wide-Net

#ABMDoneRight

"Planning up front is crucial. Without aligning your budget allocation to the type of accounts you're targeting, you will not see the kind of ROI you would expect from ABM.”

Nick Herinckx, CEO, Obility “Predictive intelligence is enabling B2B marketers to go beyond gut instinct to a systematic focus on the right target accounts. Our customers are combining predictive data with ABM display programs to achieve ABM at scale with proven ROI.”

Amanda Kahlow, CEO, 6sense "For true sales alignment, account-based marketing needs to have a methodical approach to budgeting and revenue measurement to really understand how it's performing and have confidence in the future.”

Dave Rigotti, Head of Marketing, Bizible

What ABM Leaders Are Saying…

Phone:

Email:

Website:

Twitter:

408-216-7025

[email protected]

www.kwanzoo.com

@kwanzoo

About Kwanzoo

We deliver an All-in-One platform for account-based marketing (ABM), B2B retargeting, and personalized display programs. Using Kwanzoo, enterprise marketers reach and engage target accounts and relevant contacts, and deliver highly personalized ads that accelerate the pipeline. Kwanzoo delivers the best ABM global account coverage available today, with open media and data access to all major real-time bidding (RTB) systems, demand-side (DSP) and data management (DMP) platforms and ad exchanges. We provide full transparency on media and data spend, with best practices that ensures ABM program success and high ROI.