from prospect to customer: maximize lifetime value with account based marketing
TRANSCRIPT
@HeidiBullock @Engagio
From Prospect to Customer: Maximize Lifetime Value with Account Based Marketing
Radius B2B Champions Club
@HeidiBullock @Engagio
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
@HeidiBullock @Engagio
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
@HeidiBullock @Engagio
Examine your current acquisition strategy- How well is it working?
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Broad-based
Mostly inbound
Lead-centric
Goal is volume
@HeidiBullock @Engagio
Are you too focused on acquisition?
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This needs attention as well!
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Important to think about CLV
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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
@HeidiBullock @Engagio
Rethink your mindset…
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It’s about the right accounts.It’s not about more…
@HeidiBullock @Engagio
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
@HeidiBullock @Engagio
ABM is useful here
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ABM is effective when you need to drive ongoing value
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Step 1: Understand your best customers + create goals
@HeidiBullock @Engagio
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.
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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)
Copyright ©2016, Engagio Inc.
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
Copyright ©2016, Engagio Inc.
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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Copyright ©2016, Engagio Inc.
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
@HeidiBullock @Engagio
Strategy 2: Define buyer segments
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Identify key personas
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Persona A = Exec sponsor
Persona B = User
Persona C = Decision Maker
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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
@HeidiBullock @Engagio
Segment your customer base
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IndustrySize of
Organization
Health of
Customer
Target
Account
Example:
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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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@HeidiBullock @Engagio
Strategy 4: Measurement and Optimization
@HeidiBullock @Engagio
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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@HeidiBullock @Engagio
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
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Tip 2 -Take a baseline
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Example - How to report on early stage progress
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Tip 3 -Know what is effective at different stages of the customer journey
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Tip 4 - Optimize with ongoing testing
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@HeidiBullock @Engagio
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
@HeidiBullock @Engagio
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 # # # # # $ % # $ %
@HeidiBullock @Engagio
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
@HeidiBullock @Engagio