Forging the Future of GTM: Enterprise vs. Growth ABM

Shownotes

In this episode of Sunny Side Up, host Tara Quehl interviews Davis Potter, diving deep into the intricate realm of Account-Based Marketing (ABM). Davis, a seasoned ABM practitioner, delineates the nuances between growth ABM and enterprise ABM strategies, spotlighting the crucial considerations of resource limitations and tiered methodologies. The discussion delves into key performance indicators, focusing on escalating contact engagement and burgeoning revenue, essential for gauging ABM effectiveness. As the conversation unfolds, the transformative potential of AI takes center stage, envisioning a future of scalable personalization and automated ad optimization.

About the Guest

Davis currently leads the ABM function at Telesign, and the CEO of ForgeX, a B2B market research and advisory think tank specializing in Account-Based Go-To-Market (GTM) strategies and Generative AI. He has experience launching, optimizing, and scaling ABM programs within hyper-growth VC-backed startups, mid-size organizations, and some of the world’s largest and most renowned enterprises.

Connect with Davis Potter

Key Takeaways

• ABM methods vary: Choose growth or enterprise based on launch speed and account coverage.
• Account engagement and revenue growth are core ABM success indicators.
• AI revolutionizes personalization at scale, elevating ad messaging and account intelligence.
• Contact engagement categorizes interactions, enabling focused actions for specific contacts.
• Deal velocity, sourced, and influenced revenue metrics measure ABM’s revenue impact.
• Differentiate between tiered accounts for resource allocation and strategic alignment.
• Growth ABM adopts a tiered methodology for efficient account prioritization and faster testing.
• Personalized ad platforms driven by AI optimize and iterate messaging for better results.
• ABM evolves with AI, enhancing personalization, account intelligence, and ad optimization capabilities.
• Prioritize account engagement for both overall contact interaction and core buying group involvement.
• Growth ABM offers a streamlined approach, allowing faster testing and resource allocation within tiers.
• Enterprise ABM demands deeper one-to-one or one-to-few interactions, requiring more resources.

Quote

“In growth ABM, you’re able to test and iterate so fast within your tactics.”

– Davis Potter

Highlights from the Episode

How do you see the evolution of ABM coming into play in terms of growth ABM and enterprise ABM?

Davis highlighted the fundamental frameworks of growth ABM and enterprise ABM that have been around for some time. He explained that traditional ABM methodologies have evolved to meet the needs of different organizations. Growth ABM is seen in startups and midsize organizations with limited resources, where tiering accounts (tier one, tier two, tier three) and faster campaign launches are key. Enterprise ABM is practiced in larger organizations, focusing on one-to-one or one-to-few campaigns with deeper personalization and longer campaign durations.

What are the core differences between growth ABM and enterprise ABM, and how do they fit into the market?

Davis emphasized the differences between growth ABM and enterprise ABM. In growth, ABM, quicker launches with simpler tactics are necessary due to resource constraints and larger numbers of targeted accounts. Enterprise ABM involves one-to-one or one-to-few campaigns, offering deep personalization and longer campaign durations. He also highlighted that growth ABM is driven by agility, while enterprise ABM relies on well-resourced teams and time for personalized campaigns.

What are the challenges faced by Growth ABM and enterprise ABM, and how do they differ?

Davis discussed challenges specific to growth ABM and enterprise ABM. In growth ABM, limited resources require marketers to handle tasks such as building landing pages, ads, and content themselves, resulting in faster execution but fewer resources. On the other hand, enterprise ABM faces challenges such as dealing with more stakeholders, approvals, and a longer setup time for highly personalized campaigns.

How should businesses approach target account selection for both growth and enterprise ABM?

Davis provided insights into the approach for target account selection. He suggested analyzing revenue sources, segmenting target accounts, evaluating engagement levels, and leveraging intent data for both growth and enterprise ABM. For enterprise ABM, he emphasized the importance of selecting account owners who are committed partners in the campaign’s success.

How does the buying group concept fit into the distinction between growth and enterprise ABM?

The concept of the buying group, a critical part of ABM strategy, aligns with Davis’ approach to target account selection. He discussed the significance of getting the buying group on board, especially the champion who is invested in the partnership and success of the campaign. Davis linked the buying group approach to the selection of account owners in enterprise ABM.

How does growth ABM adapt to resource constraints, especially for startups?

Davis explained how growth ABM adapts to resource constraints, particularly in startups. He stressed the importance of a tiered methodology, where tier-one accounts receive the highest resource allocation, allowing efficient use of limited resources. Tier two and tier three accounts enable faster execution of campaigns, with tiering facilitating collaboration between marketing and sales teams.

What are the differences between growth and enterprise in terms of measurement and reporting for account-based marketing (ABM)?

Davis mentioned that within the next 10 years, core Key Performance Indicators (KPIs) would likely be used by all account-based go-to-market methodologies to measure success. For growth and enterprise ABM, he highlighted two key measurement buckets: increasing contact engagement and growing revenue. He emphasized that engagement needs to be tracked at both the overall contact level and the buying group level. Differentiating between contact engagement, lapsed engagement, and unengaged contacts is crucial.

What should companies track to measure the effectiveness of their strategy, particularly in terms of increasing revenue and contact engagement?

Regarding measuring effectiveness, Davis explained that “contact engagement” is a key metric, defined as interactions with go-to-market teams (sales, marketing, customer success) within the past 90 days. Lapsed engagement and unengaged contacts are also identified. He detailed how tracking engagement within the buying group and tying it to revenue metrics, deal velocity, sourced revenue, and influenced revenue provides insights into ABM success. He discussed challenges faced in tagging the buying group for growth ABM due to the number of accounts.

Could you elaborate on the reporting and measurement aspects for growth and enterprise ABM strategies?

Davis anticipated the impact of AI on ABM in the coming years. He highlighted that AI would revolutionize personalization at scale, enabling customized insights and content. He discussed the role of AI in providing account intelligence in real time and how AI could optimize ad messaging and creativity for personalized campaigns. He emphasized that AI would significantly enhance ABM practitioners’ capabilities and impact.

What advice do you have for those looking to adopt ABM strategies? How can they navigate the choices between different ABM methodologies?

In terms of advice for adopting ABM strategies, Davis advised considering factors such as speed of launch, number of accounts to cover, and the feasibility of one-to-one or one-to-few campaigns. He suggested that the decision between growth and enterprise ABM depends on these factors.

Is there a book, blog, newsletter, website, or video that you would recommend to our listeners?

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Shout-outs

Désirée Daniels – Head of ABM & Industry – Retail, Fashion, Beauty & Consumer at Google

Alessandra Fagone – Director, Global Revenue Marketing – Acquisition and Customer Growth at Workhuman

Akriti Gupta– Marketing Director at LinkedIn