The Latest from the ABM Experts
April 15, 2020
The Total Economic Impact™ of Terminus from Forrester Consulting
Written by Joel Garcia
Category: Account-Based Marketing
Key Benefits from Participating Terminus Customers:
- 313% ROI over three years
- 40% reduction in cost per targeted account
- 60% more meetings set by SDRs per month
- 2 percentage point increase in opportunity-to-close rate
A Quick Preamble re: COVID-19
We’re no stranger to a constantly changing landscape here at Terminus. Like you, we’ve chosen to make our path in the always unpredictable and challenging world of B2B marketing. This industry has been iterating and reinventing how we do things for decades, but the last several weeks have been really unique.
While no one can predict how the rest of 2020 will go, we believe a solid ABM strategy using a battle-tested framework is the best way to navigate the uncharted territory ahead. With that in mind, we are pleased to share a commissioned study conducted by Forrester Consulting on the Total Economic Impact™ of Terminus. This study outlines how the Terminus ABM platform and TEAM framework drove improved efficiency and revenue growth for a composite organization based on a sample set of Terminus customers, so that you can have a foundation for how you evaluate account-based efforts in the new 2020.
We’ve outlined below the key benefits Forrester Consulting found after interviews and an in-depth analysis of select Terminus customers.
Return on Investment: 313%
As capital grows more scarce, driving new investments will become more difficult and companies will need to grow more efficient to capture existing demand. Focusing on the right accounts – using best-fit and behavioral signal data – and driving sales efficiency will become even more important during this time.
Forrester found that a composite organization using Terminus to improve the account selection process, drive SDR efficiency, and build awareness through targeting account-based digital ads would experience “benefits of more than $2.1 million over three years versus costs of less than $520,000, adding up to a net present value (NPV) of $1.5 million and an ROI of 313%.”
40% Reduction in Targeted Account Acquisition Costs
If “spray and pray” wasn’t outdated before – it’s certainly feeling archaic in the new 2020. Wasted ad budget in today’s climate is a non-starter, which is why proactive marketers are adjusting their digital strategy accordingly.
Forrester Consulting found that organizations can reduce wasteful ad spend and increase engagement with target accounts by “leveraging behavioral signals to identify more high fit, in-market accounts.” By using cookie-based campaigns within Terminus, marketers can also hyper-focus on only the personas they wish to target, focusing impressions “only on the decision influencers” leading to a savings of up to more than $175,000 per year.
When calculating the cost-per-acquisition for each account, Forrester found that pre-Terminus the cost for each targeted account was $150 for the composite organization, and after the cost dropped to less than $90 over a three year period. Annual benefits add up a three- year, risk-adjusted PV of nearly $437,000.
SDR-Initiated Meetings Increased 60% Per Month
As demand declines for certain verticals and increases in others, helping your sales prioritize generating meetings with the right accounts based on data will also help keep them focused during a time when at-home distractions are high. Outbound-focused sales efforts working to attract and progress accounts through the sales process may become more difficult as more people work from home, and events and on-site channels are drying up.
This means that ADRs need to work in lockstep with a marketing organization running multi-channel digital programs (including digital ads, email, and web personalization) to build awareness and progress deals.
Forrester Consulting determined that with Terminus, the sales development team for a composite organization could increase their meeting schedule rate “from 10 per SDR per month to 16 per month—and SDR-influenced deal close rates improved from 10% before Terminus ABM to 15% in Year 1.” This would grow to “nearly $828,000 in Year 3, for a three-year, risk-adjusted PV of more than $1.3 million.”
2% Increase in Opportunity-to-Close Rate
Pipeline acceleration is an important (and oft forgotten) aspect of account-based marketing. Terminus helps drive deals forward via “highly personalized display and social ads to targeted individuals based on details such as their role, geographical location, seniority, the industry they work in, what city or region they work in, and the company they work for.” Ad creative and sales messaging can then be created using behavioral signals like intent, engagement, opportunity stage, and relationship scores.
Forrester found that a composite organization “sees its existing 10% opportunity close rate improve by two percentage points to 12% in Year 1.” While a 2% increase doesn’t seem very large on its own, the compound value on large contracts can result in a lot of additional revenue. This adds up to new income in Year 1 more than $79,000, $119,000 in Year 2, and $158,000 in Year 3, for a three-year, risk-adjusted PV of nearly $289,000.
The next few quarters will be challenging for everyone, including Terminus. While our forecasting may have changed, the fundamentals have remained the same. Account-based marketing just works, and we will continue to take a full-funnel ABM approach to our acquisition, expansion, and retention strategies.
To that end, we are always refining our ideal customer profile based on account intelligence in order to target the right companies. Once our sales and marketing teams are aligned on our targets, we can build hyper-personalized, multi-digital campaigns to give our SDRs air cover, help our sales team focus their efforts on the accounts most likely to close using data, and close the biggest deals we can.
If you want to learn more about this study, you can read the full study here or check out the infographic here. If you’d like to speak with a Terminus rep about your 2020 strategy, please connect with us here.