The Latest from the Go-to-Market Experts
February 27, 2019
[ABM Case Study] Pramata Lowers Customer Acquisition Cost by 60%
Pramata uses human-aided AI technology and managed services to help B2B businesses eliminate revenue leakage — or revenue lost due to errors and inefficiencies. It’s something every B2B company needs, right?
But Pramata’s marketing team had a problem — their ideal customer had low awareness of Pramata’s brand or solutions, and it was nearly impossible to get to the C-level buyers using traditional inbound tactics. They didn’t respond to cold emails, and they weren’t searching for a solution they didn’t know existed.
Enter, Terminus account-based marketing. Through Terminus, Pramata is now able to target those ideal customers, delivering precision messaging to the right personas across high-propensity accounts. They’ve seen more new account interest and faster deal cycles, and have actually reduced their acquisition costs by transitioning from traditional inbound/outbound to account-based practices.
Finding the Right Targets
Revenue leakage comes about most commonly with large companies because the relationships are complicated, things are often not billed correctly, and their customers typically have a much larger potential lifetime value. And the personas that most commonly care about revenue leakage at these enterprises are high-level operational and financial leadership. Those aren’t always easy people to connect with.
This introduced a problem, because not only were those targeted accounts unaware that a solution like Pramata’s existed, but sales and marketing were unable to even get their message in front of those C-suite buyer personas.
This led to an artificially long sales cycle and lost opportunities stuck at lower level leadership — who were currently the only people filling out Pramata’s syndicated content forms. Compounding this fact was that the audience Pramata was able to reach didn’t care about revenue leakage in the way that enterprise executives would.
“We were spending a good bit of money on content syndication,” said Jeremy Middleton, Senior Director of Digital Marketing at Pramata. “We were getting a ton of good form fills, but when I went in and looked at the data, it turned out that about 99 percent of the people that filled out the forms didn’t care.”
For Pramata, lead volume wasn’t the problem — lead quality was. The team needed to increase awareness of its solution with accounts and personas it couldn’t effectively target. At least not without an ABM mindset.
Educating Your Audience Before Engaging
With a very small list of targeted accounts coming from a small sales team, every missed opportunity was a big one. Similarly, with large deal sizes and excellent customer retention numbers, every win made a big impact on reaching revenue goals and growing the company.
The first step for Jeremy was to ditch the content forms. As he put it, “The CFO of Comcast isn’t going to come to our website and fill out a form.”
Additionally, since those high-level executives didn’t know they had a revenue leakage problem, Pramata needed to educate people before they could sell value to them. With a small list of target accounts, the sales team was able to research each one, finding the right point of contact and personalizing their reachout.
The marketing and sales teams worked in lockstep to develop messaging specifically catered to these new target personas, all in an effort to drive those people — and not just everyone — to Pramata’s website and targeted events.
How to Tell if ABM is Working
Because Pramata was no longer blasting its content to every person possible at every organization possible, website traffic actually went down. But instead of worrying that this vanity metric was no longer hitting expectations, Jeremy dug into the data.
“Since we could accurately know which companies were coming to our website — thanks to Terminus — we could see that in a previous year, 70 percent of our traffic was not in our target market,” said Jeremy. “Now it’s actually flip-flopped. Traffic’s gone down, but 70 percent of that traffic is from our targeted accounts, who are the people we actually want to be there.”
There might be fewer people overall visiting Pramata’s website, but there are far more people visiting Pramata’s website that they can actually sell to.
New Metrics to Align With New Strategy
One of the ways Pramata knows that targeted ABM is working is because they’re no longer measuring success primarily on vanity metrics — things like impressions and page views. Instead, Pramata can use Terminus to see engagement turn into actual sales opportunities and revenue.
Jeremy says their use of Terminus has led to more efficiencies, and better ease around proving ABM wins. “It makes my life simpler, and more effective to communicate our success.”
And the success has definitely come. Here are Pramata’s results with a targeted ABM strategy built through Terminus:
60% reduction in customer acquisition cost compared to traditional inbound
4x increase in sales accepted leads
81% decrease in the cost of a sales accepted lead
32% reduction in average deal time
2.5x increase in mid-funnel pipeline
Jeremy’s advice to other organizations starting with ABM? “Some people try to force fit their current process and the tools they have into an ABM model, which doesn’t work. You need to make sure you’re putting a process in place that supports an ABM model.”
Want to see how Terminus can help you reach your ideal customers more efficiently? Schedule a demo today.