Tav Tepfer (00:03):
Hi everybody. Thanks for joining us today. We are going to talk today about how we prove ROI for ABM. So I'm Tav Tepfer. I'm our Chief Customer Officer here at Jabmo and I've asked Doug Yeamans to join us today. He's our Director of Strategy, and I wanted him to talk about how his clients are proving ROI for ABM internally. So thanks for joining Doug. "Great to be here". So when our marketing team first sent this cartoon, I really paused because I thought I'm not sure how this is going to make B2B marketers feel. I know there are a lot of strong marketers that are always fighting to have a seat at the table. You know, a seat at the table with sales and with executives and with customers, and using ABM, it's really given them marketers, a platform to, reach their customers, to have a seat at the table with customers, by being able to deliver ads directly to those companies, with a message that's relevant and compelling, digitally.
Tav Tepfer (01:15):
So, that's really exciting, but now it's equally important to get a seat at the table internally by providing those appropriate and corresponding metrics for the entire ABM program. Which for manufacturing and life sciences, the programs run a year or longer. So you have to be able to not only show the business impacts but success metrics all along the way and spoiler alert, it's not about leads anymore. So what we want to do today is really start to shape the way that marketers think about ABM metrics, so that none of us feel like this guy sitting in the corner (Referencing Slide). So you know, everything out there tells us that ABM is a must for 2021 and 2022. And now is the time to really deploy ABM programs and all the metrics talk about how successful it is. But how do we move from, you know, something that we can sense is true in our business to actually proving that ROI for our executives. And as you know, it's not easy. So I asked Doug today to join and really talk about how his clients are using ROI to show attribution for ABM programs and declare success all along the way and all along that journey. So, Doug, can you start by sharing some examples of objectives that your clients are using for ABM?
Doug Yeamans (02:51):
Yeah, sure. Tav. So there really are a number of different objectives or use cases for ABM in B2B manufacturing. And, you know, one of the most common use cases that I see across my client base is really using ABM to introduce new products or new solutions. I'm actually working with a global healthcare manufacturer currently that is using ABM to introduce a new medical device in the UK market. And they had struggled with traditional marketing approaches like email, because they were only able to email those contacts within the hospitals that had opted-in, due to GDPR. With ABM, they have been able to target all of those hospitals within the national health service in the UK, and ensure that they're reaching both, the known contacts as well as the unknown. In addition, I see clients use ABM to improve customer retention, to, even drive attendance at webinars and virtual events, to grow market share within the existing customer base.
Doug Yeamans (04:04):
So think cross sell activities and even to steal share from competitors. I'm actually working with a global life sciences manufacturer currently, and they're using ABM to target accounts where they know their competitors have systems in place. And what they're trying to do is really sell their consumables and the thinking is if they can get that consumable business, that eventually they'll be able to replace those competitor systems altogether. So, so again, there's a number of different objectives, use cases for ABM. What we at Jabmo really encourage our clients to think about though is, and really is to identify that objective and that use case upfront. That way, before we ever launch a program, we've got that in place, we have a common goal and we can make sure that we're measuring against it.
Tav Tepfer (04:58):
That makes complete sense. So initially you want to pick out what the use case is so that, you know, then the target accounts that aligned to that use case. Then you can start to run your digital campaign and measure, reach, and engagement, or those customers and prospects that are really your top revenue potential. That makes complete sense. So then what KPIs are you using to prove those steps or prove success for the program?
Doug Yeamans (05:32):
Right, I think it's, it's really important for everyone that's on the webinar with us here today to understand that ABM is a marathon. It's not a sprint. Just as sales cycles for most manufacturers take months or even years, it does take time to see the impact on things like opportunities opened and revenue and win rates with an ABM program. But what we've learned over years of doing this, is that, you can effectively measure the effectiveness of these programs by looking at different KPIs, depending on where you are and what phase of the program that you're in. You can show that the program is progressing and that it is in fact, working. For example, really the first phase of an ABM program is really the awareness phase. And the key KPIs that we measure to prove success during the awareness phase are really Reach and Engagement.
Doug Yeamans (06:33):
And what we mean by Reach is; Are we able to effectively serve a targeted message to that particular target account? In the case of Jabmo in many cases, it's an IP-based digital ad or maybe a social ad. So are we able to get that ad in front of that target account? That's what we mean by Reach. In terms of engagement, what we mean there is, are we getting that target account to actually engage with that message? Are they clicking on the ad? Are they coming to the website to learn more either directly or maybe organically -organic search. What you're looking at here on this slide is actual customer data. This is for one manufacturing client that was targeting 20 strategic accounts, and you can clearly see, and this is very much in the awareness phase; how these accounts are engaging with the program.
Doug Yeamans (07:32):
You can see that a lot of this is red, which is Jabmo ads. If you look at the bottom, there there's a legend, but you can also see that these accounts are starting to come in through other channels as well. And that's what we want to see early in the program. But as we move beyond the awareness phase into the consideration phase, this is where we really want to start to get more targeted with a messaging based on the products, the content, solutions that we've seen, the accounts engaging with the most. This is where we want to start to think about maybe putting a compelling offer in front of these accounts, putting something out there that will make them say, Hey, we are ready to have a conversation. Because once we're in this consideration phase, really we've moved beyond reach and engagement. And what we think about in the consideration phase and what we measure is really meetings set and how many opportunities have been opened. And then ultimately as we move beyond consideration into the decision phase, this is really where, the program has matured. You've had an opportunity to walk these accounts through the buying cycle, and this is where we want to see and expect to see top line growth, win rates, revenue. And so that's what we measure during the decision phase.
Tav Tepfer (09:01):
Great. I like that a lot. So in Awareness you use Reach and Engagement, and then when you're in the consideration stage, you use meetings and open opportunities. Then when you get to the decision stage, you start to use closed opportunities and win rate and ultimately revenue. I think that makes a lot of sense and I can see how you would stay in one stage for a while before moving to another stage and get really specific on those metrics. So that's interesting. So maybe to make it a little more tangible, can you give a specific example from one of your clients and how they showed ROI for their program?
Doug Yeamans (09:46):
Happy to do it. So you know, Forrester has actually done a lot of research. I'm sure that you all have seen some of this around the benefits that ABM drive, the business impact and what they have found is that the most effective way to really measure success with an ABM program is through a test and control study. What they also found in some of their research is that on average companies using ABM, see a 20% lift in average deal size, and they see a 13% lift in win rate. We at Jabmo have really adopted the test and control methodology. We do this for all of our clients today. What you're looking at here is an actual example of a test and control study we did for one specific client.
Doug Yeamans (10:40):
This was a $27 billion oil and gas manufacturer. So what we did initially is we identified the two groups. We identified the target account group, and these were simply the accounts that were going to be part of the ABM program. Then we identified a very similar group of control accounts. Now, these accounts, we wanted to make sure they were as similar as possible. So similar in size, location in terms of where they were headquartered, regions and even how much business they actually did with this client today. What we were looking to do is just have the one variable; are they, are they part of the ABM program or not? And then we looked backwards. We looked at how many opportunities were opened in each of the two groups. What we saw is that in 2019, there were 5.7% fewer opportunities opened in the target account group than in the control group. As we launched our program in 2020, we looked at this again and granted, this is a partial year for 2020, but what you can see is that it clearly flipped. Whereas before we launched the program, there were fewer opportunities in the target account group. What we saw with our program running is that there were 20.5% more opportunities opened in the target account group, than the control group.
Doug Yeamans (12:14):
So the other thing we looked at using these same groups is, what were the opportunity sizes? And what we saw was that, in that target account group, not only were there more opportunities, but the opportunities that were opened were actually 18% larger than those that were opened in the control group. So this was a big win for this particular client and they use this data to continue selling the program internally with stakeholders, with leadership and ultimately they were able to use this to secure more budget, to continue the ABM program, to expand it to other divisions and other regions, which ultimately is going to drive even better results in the longer term.
Tav Tepfer (13:03):
Yeah, it's definitely a way to keep expanding and make the program ongoing. Opposed to just an initial test. When, when you get results like this, I can see how they, they would expand quickly. Great. So at Jabmo, we use an ROI calculator to really help our clients get these numbers socialized internally and we do manage services. So our customer success team actually helps you with this ROI calculator calculator, which is great. So it depends on where you are in the stage of your ABM program, but we start with engagement metrics, as Doug mentioned, using Forrester to set up the way that that program is going to lay out and what the ROI potential is. Then as you do start to move to those different stages, we start filling it in.
Tav Tepfer (14:00):
How many meetings did you get set? How many opportunities were opened, how many were closed and what did that win rate look like? How has the pipeline grown? And then ultimately, how has the revenue grown. So we can help you with this, we know it gets kind of tricky. We do this for all of our clients and happy to work with you in advance of starting the program, or if you're in the middle of the program, wherever you may be to, to prove ROI. Because we know how important it is. Great, I think this was a really good discussion. Doug, do you want to sum it up for us of what the key takeaways are for B2B marketers?
Doug Yeamans (14:44):
Yeah, in conclusion, first thing I would say is don't fall into the trap of using how many new contacts or how many form fills did we get as the primary metric of success for an ABM program. At the end of the day, ABM is much more strategic. What we want to impact with ABM is, as we've talked about, certainly reach and engagement early on, but as you get later into the ABM program, we want to see that we get more meetings, more opportunities, more revenue. Aligned metrics for each stage. So, as we've talked about these programs take time. There should be different KPIs that you're measuring along the way to ensure that the program is progressing and that you're seeing results with the program. Then focus on business impact. Tav talked about the ROI calculator use test and control studies, use the ROI calculator, use that data to continue to position ABM as the right way forward internally, with your stakeholders, with your leadership to continue to secure budget for these types of programs and ultimately to continue to expand it across the organization and around the globe.
Tav Tepfer (16:04):
Well, thank you for this. I'm going to open it up for questions. So the first question we have here, and I think it was the ROI slide. The question is what kind of company is this ROI for? So this particular example is a manufacturer that ran a services campaign. So when the manufacturing side of the business would close a deal, then the services group would come in to sell services on top of that deal. And so that's what this is. So their deal sizes were around $300,000. And when they started running the program, that increased the deal size increased and the win rate increased, which was, really nice. That is kind of the point that we'll help with here at Jabmo because everybody's business is different and not just from company to company, but even within divisions of a company they're drastically different. In this case, like it cannot be a target account until they close business on the other side of the house. So getting a control group was very specific to their business to look at these metrics. So good question.
Tav Tepfer (17:28):
Any other questions? Okay another question is What's the best way to get started with ABM?
Doug Yeamans (17:44):
I can take that one Tav. That's, that's a big question. The first thing that I would say to that is don't boil the ocean. We get that ABM is new for many of the companies that we work with and that we engage with. So we recommend that you start small, show results, prove it over time and continue to expand the program. The first thing really is to identify that objective or that use case as we've talked about. Whether it be introducing a new product or solution or growing the existing customer base, or if it's about retention, but identify that use case and then as you start to think about which accounts you might want to target, get alignment with sales early. I know that in some cases, this can be difficult.
Doug Yeamans (18:37):
We see it across our clients, but it really is important. The programs that I've worked on and worked with clients that have been most successful with ABM programs, they've had that sales alignment they've had support from sales, they've had sales involvement, so work with sales and not just to identify which accounts you might want to target, but also what challenges those accounts might be facing and what messaging you might want to put in front of them. Then I would say partner with someone that's going to really hold your hand through the process. These programs aren't easy. They do take work. Work with someone that is going to be by your side, to make sure that you see the outcomes, that you see the results with these programs. Then measure, use data to continue to sell the programs internally. So use the test and control studies, use things like the ROI calculator, and continue to socialize this with the executive team, with your key stakeholders. So they know what the impact is, what the results are that you're saying. Again, you can continue to secure budget and expand the programs over over time.
Tav Tepfer (19:52):
So we've got a few more questions; How do how do you sell ABM to your CEO - Which is exactly what we're talking about. I think what Doug mentioned is don't boil the ocean, create a program that has ROI metrics that you can explain and then show those steps along the way. You know, we use the challenger methodology here at Jabmo and can help you shape that conversation. We'll be happy to follow up with you to really talk about how we can help with that internal packet, if you will, of information that you can provide. Another one is a company with an average deal size of a $100,000, selling to software companies and asking: How would I get started and what content would be the most effective.
Tav Tepfer (20:53):
I would say it goes back to building that program and the stages of the program. How many customers, we use the 80/20 rule to determine that value; the top 20% of your customers are the top 80% of your revenue potential. We can help you think about what the use cases for your program and then how those target accounts fit into that for potential revenue. Then content really varies along this journey, you know, we don't recommend making any kind of offer until stage four, even stage five. But we do a content audit for you as well with our managed services group and help you shape that content that's valuable, all through the program.
Tav Tepfer (21:48):
So happy to continue with that. Really where we go from here is we'll reach out to you to help you shape your program, since you have interest in wanting to start ABM or continue an ABM program. We wanted to get this conversation going, because we know this is something that everybody struggles with and now we'll follow up with everyone to help them shape this internally, deliver it to their CEO or their sales team and get budget to start an ABM program, and then measure success all along the way.
Doug Yeamans (22:28):
I see a question here about what sets Jabmo apart from other providers. It's a question we get frequently. There's really three things that make Jabmo different than others in the marketplace. The first is that we're very much focused in the manufacturing space. That's probably very clear if you look at our website, you look at our content. You know, we focus in manufacturing in life sciences and our team know those industries very well. We have great coverage as it relates to the accounts that those types of companies would want to target. So it just allows us to get going faster and to drive better results. That would be the first one.
Doug Yeamans (23:22):
The second is we're very much a global organization. So this isn't just something that can work in North America. We can help our clients target accounts anywhere they are in the globe. Jambo is actually headquartered in Paris. We are a global organization ourselves and not only can we target companies in EMEA, we can target companies in APAC as well, and we do it all the time for our clients. And because at the end of the day, our clients are global organizations themselves. The third thing is we provide this as a managed service. This is really, really important because again, ABM is new for most companies that we work with, and we don't want to just give you something and walk away and have our customers have to do it on their own and execute the campaigns and manage these programs. So we really partner with our customers and try to do as much of the heavy lifting for them as we can. What we found is that when we do that, we just see better results. We get to better business outcomes, which is great for our clients and it's good for us as well. So we focus on manufacturing, we are very much global and we provide this as a managed service. These would be the three things that make us very different.
Tav Tepfer (24:44):
I know that's how important that is since all marketing teams are so pressured today to do so many different jobs. So getting a program like this going on, all the different platforms and it's hard. We're here to help for sure. Another question here is, do we get pushback on IP's on companies for using their IP's and no, we really don't. The reason we don't is because when you're delivering a message that's relevant and matters to you, it's not noisy, it relevant, so by really getting that message to be specific to a company and deliver that ad, anywhere they might go on the internet, it is more welcoming. We don't really get pushback there since it's not spam, it's something that is relevant to their business. So we usually get; "Oh my gosh, I saw that ad and that spoke to me", more than we get any kind of pushback. Thanks everybody for your time. Great questions. As I mentioned, we'll follow up with you, for your specific programs to show how you can get started or get ongoing budget to expand your program by using ROI. Thanks for the great discussion. Thanks for joining.
The best objectives and KPI’s for an ABM program
How a $27B Energy company secured budget for ABM
Using Jabmo’s ROI Calculator to make a business case for ABM
B2B Marketers are accelerating investments in Account-Based Marketing in 2021 but some struggle to prove the impact of their marketing investments and build an internal case for investing in ABM. How can marketers be armed with the proper strategy, KPI’s and framework to make marketing contribution to business growth more quantifiable?
Learn how to measure the impact of ABM in a controlled, scientific manner and build a case for continually investing in ABM. This event is part of our webinar series aimed at demystifying ABM. Tav Tepfer, our Chief Customer Success Officer is joined by our Director of Digital Strategy, Doug Yeamans to discuss how large, global companies have secured budget and expanded ABM programs in 2021.