Most companies understand the importance of having highly targeted outreach models in order to stand out and maximize revenue in today’s noisy market — but many still struggle to build the right foundation to be truly successful at this.
We were recently joined by Steve Casey, Principal Analyst at Forrester, on a webinar to share his recipe for building and executing a winning go-to-market strategy. Steve previewed Forrester research that points to a growing shift in how companies are engaging with their target buyers.
In case you missed the webinar, you can still catch the recording or preview what’s on the menu with these key takeaways:
1. It’s time for marketing to pull up a chair at your revenue table
More and more marketers are changing the way they measure their performance. The lead volume game is on the decline as more marketers are setting their sights on revenue contribution. In fact, Forrester research uncovered 35% of marketers are now being measured by their direct contribution to revenue. With marketing budgets accounting for 11% of a company’s overall budget, on average, it’s no surprise that marketers are being held to proving the ROI of their investments.
With marketers moving closer to the dollar, they should naturally play a critical role in crafting the company’s growth strategy. The rise of account-based marketing illustrates this shift. Sales and marketing are uniting to define how they tackle their target market together.
2. Marketers need to drive the foundational go-to-market strategy
Sales and marketing are getting better at collaborating on how to expand into their market, but Casey argues that there’s still advancement to be made. While the majority of companies are beyond experimental phases of account-based strategies, 47% are focused on fewer than 100 accounts. This indicates that nearly half of companies are still operating under a named account model — one where sales chooses the accounts that they want to target, and marketing builds precision-based, personalized campaigns around those target accounts.
The “A” in account-based marketing is absolutely central to the strategy, but is too often overlooked. Account selection needs to be a strategic exercise in which you closely analyze the complete profile of your best customers — those that generate the most revenue over their lifetime — and target other companies that fit a similar profile.
The spectrum of target account selection maturity. As precision increases, so too does your need for rich data intelligence to power your targeting capabilities.
3. Your go-to-market model should be centered around “machine-driven marketing”
Casey argues that there are two key levers at play in targeted go-to-market strategies: the number of target accounts and the level of personalization. As illustrated in the model below, the sweet spot for a targeted yet scalable go-to-market strategy is at the midway point in each of these levers. This is where “machine-driven marketing” — scaled decisioning based on rich insights — is achievable, and where most companies should set their sights.
Within machine-driven marketing, the collection of target accounts is relatively stable, yet provides some level of nimbleness to adapt in response to behavior and intent data. This ensures you’re reaching the right people, at the right time, and with a personalized message.
Machine-driven marketing is achieved when strategic, scalable decisioning is made possible by balancing the number of target accounts and level of personalization applied to these accounts.
4. The recipe for a winning go-to-market strategy includes equal parts sales and marketing, plus a little chemistry
The only way to stand out is to know who you’re targeting, and why and when they buy, and it can’t be done effectively unless both sales and marketing buy into it.
The perfect go-to-market strategy should be crafted by aligning sales and marketing around the following core ingredients:
- ICP and TAM development: If your company hasn’t already done an ideal customer profile (ICP) exercise, or if it’s been a few years since it was reviewed, this is where you should start. Marketing should drive the project, and sales should help set the parameters around what makes an ideal customer. For more tips, check out our ebook, Do You Know Your Total Addressable Market?
- Target account selection: With an ICP definition as a guide, the next step is for marketing to build out the collection of target accounts. Both sales and marketing will use this list to focus on the same targets.
- Joint orchestration: Now that you have strategically chosen your targets, the final step is for sales and marketing to build out a strategy to orchestrate joint engagement across the target market.
Good news — InsideView can help you across your entire go-to-market strategy! The all-new InsideView Apex includes an ICP wizard, visualization tools to identify new/adjacent market segments with “what if” targeting analysis, TAM and market penetration analysis, TAM and market penetration analysis, an AI engine to score and recommend the best new accounts, and integration with leading CRMs and MAPs to manage ABM outreach. Learn more by taking a two-minute tour.