Budgeting for ABM: Optimizing Spend to Drive Growth
•
1 like•106 views
View the full webcast here: http://dg-r.co/2xDVi44 According to SiriusDecisions, 92% of marketers call account-based marketing (ABM) a B2B must-have; and according to eMarketer, 41% plan to increase spending on ABM. With 2018 right around the corner, what’s your plan for funding an ABM strategy? In this session, Demandbase will talk shop about how its own marketing department got creative and developed an ABM budget that created efficiencies the team never thought possible. Tune in to learn: • Why marketers are prioritizing ABM in 2018; • How to align around a target account list; • Creative ways marketers are developing ABM budgets; and • How to optimize the program mix.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Budgeting for ABM: Optimizing Spend to Drive Growth
Similar to Budgeting for ABM: Optimizing Spend to Drive Growth (20)
More from G3 Communications
More from G3 Communications (20)
Recently uploaded
Recently uploaded (20)
Budgeting for ABM: Optimizing Spend to Drive Growth
- 3. #SPS17 • Tracking strategies & solutions in lead generation & marketing tech since 2007 • Daily news and analysis, special reports, original research and live events • Newsletter reaches 45,000 readers • Additional resources at: demandgenreport.com/resources @DG_Report http://linkd.in/DG_Specialists About Demand Gen Report
- 7. © 2016 DEMANDBASE｜SLIDE 7 EVOLUTION OF ACCOUNT-BASED MARKETING 1995- 2005 2005-2012 2012>>> • Limited in scale (25-50 accounts) • Field Mktg centric • Analog in approach • Improved scale • Email centric • Industry focused • Post hand raise • Reactive • Fully scalable (5000+ accounts) • Full funnel • Multiple targeting options • Pre hand raise • Proactive
- 8. © 2016 DEMANDBASE / SLIDE 8 THE RISE OF ACCOUNT-BASED MARKETING ABM in 2015 SiriusDecisions: State of ABM 2015 of B2B companies have ABM program older than 1 year 20% of B2B companies have a skills gap for ABM 47%
- 9. © 2016 DEMANDBASE / SLIDE 9 THE RISE OF ACCOUNT-BASED MARKETING ABM in 2016 SiriusDecisions: State of ABM 2016 of B2B companies have ABM program older than 1 year 41% of B2B companies have staff partially or fully dedicated to ABM 70%
- 10. © 2016 DEMANDBASE / SLIDE 10 THE IMPACT OF ABM ABM provides much greater benefit than traditional approach ABM and traditional are same Traditional approach benefit is much greater 3.98 4.00 4.02 4.14 4.20 4.31 4.64 1 2 3 4 5 Customer Retention Rate Initial Contract Value Close Rate Return on Sales & Mktg. Investment Upsell/Cross-sell Overall LTV Alignment Between Sales & Marketing ABM OUTPERFORMS TRADITIONAL METHODS B2B Marketers Are Realizing Greater Benefits From ABM Across Multiple Areas TOPO: ABM State of the Market
- 11. © 2016 DEMANDBASE / SLIDE 11 THE IMPACT OF ABM 3.89 3.81 4.12 4.15 3.70 4.23 4.44 4.17 4.18 4.30 4.32 4.38 4.39 4.87 1 2 3 4 5 Customer Retention Rate Initial Contract Value Close Rate Return on Sales & Mktg. Investment Upsell/Cross-sell Overall LTV Alignment Between Sales & Marketing 1 yr+ <1yr TOPO: ABM State of the Market ABM provides much greater benefit than traditional approach ABM and traditional are same Traditional approach benefit is much greater ABM BENEFITS INCREASE OVER TIME The Benefits Of ABM vs. Traditional Marketing are more Pronounced as you Scale your Efforts
- 12. © 2016 DEMANDBASE / SLIDE 12 THE IMPACT OF ABM ABM DEDICATION INCREASES BOOKINGS TOPO: ABM State of the Market A Main Driver for Adopting ABM is Increasing ACV $71,941 $195,294 $0 $50,000 $100,000 $150,000 $200,000 $250,000 Pre-ABM ACV Post ABM ACV ACV: Before & After ABM 171%
- 13. © 2016 DEMANDBASE / SLIDE 13 BUDGETS FOR ACCOUNT-BASED MARKETING IN 2017 ABM success is driving demand for increased investment Source: ITSMA & ABM Leadership Alliance ABM Benchmarking Survey, July 2017 of marketing budget dedicated to ABM 26% of companies planned to increase their ABM budget in FY2017 72%
- 14. © 2016 DEMANDBASE｜SLIDE 14 No line item or don’t understand how to find new budget? Don’t know which programs to adopt, drop or keep Measuring deep funnel metrics takes time CHALLENGES YOU’RE FACING IN BUDGETING
- 15. © 2017 DEMANDBASE # 15 5 Ways to Marketers Are Finding Budget for ABM Top-down directive is in place Use innovation budget to test Partner with other teams to fund programs Roll up under other Initiatives Shift and reallocate budgets from existing programs $ $
- 16. © 2017 DEMANDBASE # 16 WAYS TO BUDGET FOR ABM ABM Budget Directive Determine what areas are ready for ABM § Processes § Technologies § Program/Channels Identify a starting point Prioritize under performing areas first{
- 17. © 2017 DEMANDBASE # 17 WAYS TO BUDGET FOR ABM Use innovation budget to test Find a test that will make a difference Be sure to measure for a successful test Be cautious and conscious of test time frames { $
- 18. © 2017 DEMANDBASE # 18 WAYS TO BUDGET FOR ABM Partner with departments to fund Sales and Marketing Alignment is a 2-way street Sales needs more than leads, they need target account insights like: § Anonymous buyer activity § Product interest alerts § Stalled deals visibility {
- 19. © 2017 DEMANDBASE # 19 WAYS TO BUDGET FOR ABM Roll up under other initiatives What other initiatives will ABM support? § Website Redesign § Customer Experience Enhancements § Marketing Automation {
- 20. © 2017 DEMANDBASE # 20 WAYS TO BUDGET FOR ABM Be honest about what’s working and what’s not Start with your list of budget areas to determine where you can make changes Shift or Re-allocation Budgets { $
- 21. © 2017 DEMANDBASE # 21 TOP B2B MARKETING BUDGET CATEGORIES FIELD MARKETING Hospitality Events WEBSITE CRM MAS/MAP DMPs Analytics Predictive TECHNOLOGY / INFRASTRUCTURE DEMAND GEN Sponsorships: Events Sponsorships: Content Digital Events: Webinars Advertising SEM Content Syndication/ 3rd party Networks Paid Social Direct Mail CONTENT MARKETING PRODUCT MARKETING PR/ANALYST AGENCY FEES Testing Design Paid Social SEM
- 22. © 2017 DEMANDBASE # 22 CATEGORICAL SPEND UNAFFECTED BY ABM WEBSITE CRM MAS/MAP DMPs Analytics Predictive TECHNOLOGY / INFRASTRUCTURE CONTENT MARKETING PRODUCT MARKETING PR/ANALYST AGENCY FEES Testing Design Start by ruling out areas you can’t cut
- 23. © 2017 DEMANDBASE # 23 THEN WHAT CATAGORIES CAN BE OPTIMIZED? FIELD MARKETING Hospitality Events WEBSITE CRM MAS/MAP DMPs Analytics Predictive TECHNOLOGY / INFRASTRUCTURE DEMAND GEN Sponsorships: Events Sponsorships: Content Digital Events: Webinars Advertising SEM Content Syndication/ 3rd party Networks Paid Social Direct Mail CONTENT MARKETING PRODUCT MARKETING PR/ANALYST AGENCY FEES Testing Design Paid Social SEM
- 24. © 2017 DEMANDBASE # 24 WHAT YOU HAVE TO WORK WITH FIELD MARKETING Hospitality Events DEMAND GEN Sponsorships: Events Sponsorships: Content Digital Events: Webinars Advertising SEM Content Syndication/ 3rd party Networks Paid Social Direct Mail Paid Social SEM Categories you can optimize for ABM
- 25. © 2016 DEMANDBASE｜SLIDE 25 WHERE TO START MIGRATING PROGRAM CHOICES WITH THESE INSIGHTS EASY § Advertising – already spending $$ § Field Marketing – probably already targeting by certain cities § Content Syndication – already spending $$, just limit results § Website Optimization MORE WORK § Website Customization § Sophisticated Personalization § National events § Direct mail § Nurturing
- 26. © 2017 DEMANDBASE # 26 SET BASELINES FOR PERFORMANCE Evaluating previous performance to set baselines and define threshold/metrics for cut vs keep (opp gen, target account ratios, pipeline acceleration, etc.) § Old evaluation metrics § New ABM ones How will measuring success change for each program? § Performance/attribution tracking § Cost tracking
- 27. © 2016 DEMANDBASE # 27 ABM OPTIMIZED MARKETING MEANS MORE BUDGET TO DRIVE GROWTH $222K / year for New ABM Programs & ABM Technologies $465k FULL BUDGET CONTENT SYNDICATION WEBINAR SPONSORSHIPS DIGITAL ADVERTISING REGIONAL EVENTS SAVING BY ABM APPROACH $243k FULL BUDGET Standard B2B Marketing Spend ABM Optimized Spend
- 28. © 2017 DEMANDBASE # 28 COST OPTIMIZATION vs OUTPUT 0% 20% 40% 60% 80% 100% 0 200 400 600 800 1000 2013 2014 2015 2016 Pipeline Generate Cost Per Opp Pipeline Count vs Opportunity Cost (Forecasted)
- 29. © 2016 DEMANDBASE｜SLIDE 29 Turn ABM Up to 11 More Programs? New Technologies? Better Analytics? New Markets? What to do with Optimized savings?
- 30. © 2017 DEMANDBASE # 30 KEY TAKE-AWAYS: HOW TO BUDGET FOR ABM Where are you currently spending? Narrow options for consideration Start with low hanging fruit Set baseline performance evaluations/thresholds Make decisions on spend and programs How do you plan to find budget? Scale success and fail fast
- 31. QEUSTIONS?