from prospect to customer: maximize lifetime value with account based marketing

@HeidiBullock @Engagio

From Prospect to Customer: Maximize Lifetime Value with Account Based Marketing

Radius B2B Champions Club


What you’ll learn

1. Why you should not solely focus on acquisition

2. Why ABM is an effective marketing strategy for the entire journey

3. How to think about programs

4. Tips for measurement and optimizationHeidi Bullock

CMOEngagio

@HeidiBullock


Today

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Not enough

of the right

types of

leads

Poor quality –

80% never

convert to

Sales

Sales alignment

- Poor efficiency

Issues with

churn and

retention

Missed

Targets


Examine your current acquisition strategy- How well is it working?

4

Broad-based

Mostly inbound

Lead-centric

Goal is volume


Are you too focused on acquisition?

5

This needs attention as well!


Important to think about CLV


Focus on the right type of customer

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What is our ideal customer profile (ICP)?

Example: Higher ACV compared to non-ICP, better retention, cross-sell opportunities


Rethink your mindset…

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It’s about the right accounts.It’s not about more…


AND

Fishing with nets. You don’t care which fish you

catch as long as you catch enough fish. The fish

always swim towards you.

Demand GenerationFishing with spears. You care deeply about

which fish you catch, and you’re going to

proactively go pursue those fish.

Account Based Marketing

Need a different strategy - ABM


ABM is useful here


ABM is effective when you need to drive ongoing value

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Step 1: Understand your best customers + create goals


Do you know what type of customer or segment is ideal for your business?

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Segment Customer Churn Rate Revenue Churn Rate

<50 42.3% 43.54%

Small 23.3% 23.54%

Medium 11% 11.4%

Enterprise 5% 5.7%

Look at your key segments. Do you know which is the most profitable for the

business? Is your current strategy optimized for that?

Example:

Copyright ©2016, Engagio Inc.

Define your ICP

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1Identify your ICP – Ideal Customer Profile• Historical data – (where have you had success?)

• Key vertical (ex: healthcare, entertainment, construction)

• Firmographics – (size of company, revenue, geography)

• Other signals – intent data, hiring patterns, etc.

2

3

Figure out the TAM – Total Addressable Market• How many accounts in my database fit that profile?

• How many in GEOs we support (location)?

• What is the white space?

Prioritize Accounts• Can use predictive scoring (account scoring) + intent data

• Sales input

• Historical data (closed won analysis)


Create your plan

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$$$ Revenue Goals

Pipeline Required (sources can vary marketing, sales, partner)

How can we bring in the BEST quality pipeline most efficiently?

ENT Segment – Need Z%

POR GOAL

Mid-Market Segment –

Need Y%

POR GOAL

Small-Business

Segment –

Need X%

POR GOAL

Example: inbound

marketing modelExample: Programmatic

ABMExample: ABM

What is our optimal strategy to get there (mix of DG /ABM- programs, tactics)

This

breakdown

should be the

optimal mix to

most

effectively hit

revenue

targets


Set goals - Be clear what you are moving towards

Have a hypothesis – We think this set of accounts in the health care vertical makes sense for us to pursue.

–Higher ASP

–Faster sales cycle

–More cross-sell, up-sell potential

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Example scorecard

Engagement Sales Appt Pipeline Opportunity

Size

Win Rate

>80%

of target accounts.

>30%

tier 1 prospects

40%

of enterprise initial

Pipeline from

Targets

45%

increase in Opp

Size

50%

higher for target

accounts

Time frame = Year One

Should HELP get to your revenue goals more efficiently


Strategy 2: Define buyer segments


Identify key personas

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Persona A = Exec sponsor

Persona B = User

Persona C = Decision Maker


Have clearly defined journeys

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PERSONA – A BUYER’S JOURNEY

STAGE GOAL AWARENESS CONSIDERATION PURCHASE ADOPTION X-SELL/UP-

SELL

ADVOCACY

BUYER GOAL I think I have a

problem

How do I fix my

problem and why

you?

What do I need

to buy?

I can I get

going fast and

be successful

with the

product?

I like product x, I

would like more

seats, or I am

interested in

product y.

I love the

products – I am

happy to

recommend to

others!

CONTENT Targeted ads,

blog posts,

ebooks, events,

webinars

Video testimonials,

field events, case

studies, analyst

reports

Product video,

on-site

workshops,

demos

Workshops

Online tutorials

Product

webinars, video

testimonials,

case studies

Early access to

new features


Segment your customer base

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IndustrySize of

Organization

Health of

Customer

Target

Account

Example:


Map your products to key customer segments

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BUY

Segments

Product A Product B Product C

Segment 1

Persona

Segment 2

Persona

Segment 3

Persona

Strategy 3: Design programs

Account Tiering

Large- 5-50 accounts (“tens”)

Rich account plans; Every touch personalized

$100K – $1B+

Named -50-1,000 accounts (“hundreds”)

Light research + data build out

Personalized touches to key personas

$50k – $100k

Industry - 1,000+ accounts (“thousands”)

Automated touches OK

Industry and persona customization

$25k – $50k

Style 3

Programmatic

Style 2

Scale

Style 1

Strategic

Type of

Program

Program Accounts

Tier 1 Tier 2 Tier 3

Direct Mail High value Post card – lower value Post-card lower value

Field Events Lunch and learn + dinners +

onsites

Lunch and learn Lunch and learn

Tradeshows Special dinner

Playmaker sends Yes Yes Yes

Database sends In some cases OK Yes Yes

Targeted Ads Yes + tailored content + logo Yes + industry Yes – industry

Content Syndication Yes – verticals and key

companies

Yes – verticals Yes -verticals

Sales outreach Yes (calling campaigns, drive

attendance)

Yes (calling campaigns, drive

attendance)

No

Appt Setting Yes Yes No

Contact Discovery Yes Yes No

Customer content

Custom streams

Yes (tier 1 and 2)

Program entitlements

Be honest…

• What can Sales realistically support?

• What can Marketing support?–Resources

–Budget

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If you remember one thing today

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Random acts of kindness = good Random acts of marketing = bad

Anatomy of a program

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Goal: Awareness

Is the company aware of your

products / services?

Goal: Engagement

Are the right people engaged

and interested?

Goal: Action

Do they have what is required

to make a decision?

Ask: What set of tactics make sense for these objectives?Note – It’s never just ONE activity.

Where do you have coverage?Do you have sufficient data, opt-in contacts, and account plans for each target account?

Where do you need to drive awareness?Which target accounts have any awareness of us? Are they visiting the website?

Content for different tiers

• Messaging for key buyer(s)

• Content for different stages – can be simple!

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Content examples

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Targeted Ads Personalized eBook Personalized Video

Example plays

Program Example – Goal – Penetrate New Accounts

Targeted adsentire account

EmailT: Head of SalesF: ADR

Direct MailKey personas

EmailT: Head of MarketingF: ADR

ChecklistPackage received?

PhoneT: Head of SalesF: ADR

Program Example – Goal – Drive a Decision – Deal Nurture

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Challenge – Initial interest, but a deal

slows or does not progress to the

next stage

Solution – Run targeted play to key

stakeholders to shorten deal cycle.

Important for Customers

You NEED to be:

• Personal

• Timely

• Relevant

• Authentic

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Program Example – Goal – Upsell/Cross-sell

Challenge – To ensure customers are aware of

different products/services.

Solution – Run targeted cross-sell play to right

individuals in account – in a personal and timely way.

Make it Personalized to Drive Results

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Strategy 4: Measurement and Optimization


ABM metrics are different

•Focus on quality not quantity

•Track accounts not leads (MQAs not MQLs)

•Time spent (engagement minutes)

•Track impact and influence more than try to apportion ‘credit’ (team effort)

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What to measure

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Do you have

sufficient

data,

contacts, and

account

plans for

each target

account?

Are the target

accounts

aware of your

company?

Are the right

people at the

account

spending time

with your

company? Is

that

engagement

going up over

time?

Are

marketing

programs

reaching

target

accounts?

Are ABM

activities

improving

key sales

outcomes?

COVERAGE AWARENESS ENGAGEMENT REACH IMPACT

@HeidiBullock @Engagio43

Early Stage Metrics Later Stage Metrics

1• Coverage

2• Awareness

3• Engagement with key programs

4• Meetings

1• Customer MQAs

2• Opportunities

3• Pipeline

4• Impact/ ROI

Tip 1- Measure at different points in time


Tip 2 -Take a baseline

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Example - How to report on early stage progress


Tip 3 -Know what is effective at different stages of the customer journey


Tip 4 - Optimize with ongoing testing

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Test! Core Prospecting Play

205 193 113 45 24 1Mtgs Opps Deal(so far)

EngdPkgs Resp

22%

Meeting Rates

Books only: 25%

Kindle only: 21%

Ads and Kindle: 21%

Ads and Books: 13%

Not significant

Web Traffic Visitors

Ads +43% +47%

No Ads +22% +8%

Directionally meaningful but not significant

34.2x pipeline to spend


Tip 5 – Have a dashboard to report on progress

Tier # of

AccountsAwareness MQA

Sales

ApptOpps

Pipeline

ACV

Conversion

to OppC/W Deals

C/W

ACV

Conversion to

C/W

Tier 1 # # # # # $ % # $ %

Tier 2 # # # # # $ % # $ %

Tier 3 # # # # # $ % # $ %


Take-Aways

1. To drive growth and revenue, do not focus ONLY on acquisition

2. ABM is a powerful strategy for entire customer journey

3. To engage your customers, delight them with personal and relevant communication

4. ABM metrics are different – it’s not about volume

5. There is not one golden metric, measure at different time points

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Summary