B2B Marketing Exchange Podcast Summary

Episode: How Cisco Re-imagined Its Demand Strategy To Maximize ROI
Host/Author: Demand Gen Report
Release Date: January 15, 2025
Guest: Brittany Bartlett, VP of Global Field Marketing, Cisco Systems

1. Introduction

In this episode of the B2B Marketing Exchange Podcast, Brittany Bartlett from Cisco Systems shares an in-depth case study on how Cisco revamped its demand generation strategy to maximize return on investment (ROI). Facing high growth expectations with constrained budgets, Cisco transitioned from a scale-based to an account-based marketing (ABM) approach, leveraging data-driven strategies to align sales and marketing efforts effectively.

2. Cisco’s Background and Market Position

Brittany Bartlett introduces Cisco Systems as a leading B2B technology company recognized as the number one most valuable pure B2B brand by Interbrand. Despite its strong brand presence, Cisco operates in complex and competitive markets, offering essential networking products like wireless routing and switching, as well as expanding into areas such as cybersecurity, AI, and data centers. However, Cisco faces the challenge of being widely recognized yet not fully understood outside the tech industry, necessitating a more strategic marketing approach.

“Most people have heard of the company. If you're in B2B, particularly B2B tech, most people have no idea what we actually do. That's a real problem.”
— Brittany Bartlett [02:20]

3. Challenges in Marketing Strategy

Cisco grapples with several key challenges:

• High Growth Expectations: The company aims for accelerated growth across various markets and global regions.
• Limited Budget: Contrary to common belief, Cisco's marketing budget is tighter than many competitors, as the company prioritizes investment in research and development (R&D).
• Resource Constraints: Significant budget cuts have impacted the marketing department, requiring more strategic allocation of limited resources.

“We have very high accelerated growth expectations... But by just pure SG and A spend, we actually spend far less than most of our competitors on marketing.”
— Brittany Bartlett [04:15]

4. Implementing the Account Based Experience (ABX) Strategy

a. Defining ABX

Brittany defines ABX (Account Based Experience) as a coordinated, customer-centric go-to-market strategy that aligns sales and marketing resources towards high-growth opportunities. This approach emphasizes investing more in accounts with higher growth potential and less in those that do not promise significant returns.

“So basically spend more money on the people that are going to give you higher growth, more money, time, resources both in dollars and in people, less on those that don't.”
— Brittany Bartlett [16:25]

b. Data-Driven Decision Making

A cornerstone of Cisco's ABX strategy is the use of data to inform decisions. Utilizing machine learning (ML) and artificial intelligence (AI), Cisco developed a complex scoring model that evaluates multiple factors, including:

• Market Potential: GDP and GDP growth rates in target markets.
• Account Growth Opportunities: Assessment of wallet share and competitive positioning.
• Customer Engagement: Intent data to gauge how actively accounts engage with Cisco versus competitors.

“Data had to be the thing that we were anchoring on to make all of these decisions.”
— Brittany Bartlett [15:50]

c. Process and Platform Enhancements

Cisco enhanced its marketing processes and platforms to support the ABX strategy:

• Tech Stack Optimization: Improved the existing technology stack to better support data integration and campaign execution.
• Unified Customer View: Consolidated multiple databases into a single Salesforce platform to ensure all teams access the same customer information.
• Role Redefinition: Transitioned field marketers into business leaders first, marketers second, enabling a more strategic approach to account management.

“All our marketers before six months ago did not have access to Salesforce. We had a marketing database of contacts and a sales database of contacts.”
— Brittany Bartlett [31:45]

d. Organizational Design and Team Alignment

Cisco restructured its teams to ensure seamless collaboration between sales and marketing:

• Pod Structure: Introduced a "pod" system where account teams, including ADRs (Account Development Representatives) and field marketers, meet regularly to discuss account progress and share insights.
• Integrated Account Planning: Ensured that sales teams leverage ADR support for targeted accounts, mandating participation to maintain alignment and accountability.
• Training and Development: Invested in comprehensive training programs, including ABX and AI training, to equip teams with the necessary skills for the new strategy.

“Our marketers before six months ago did not have access to Salesforce. That was step number one.”
— Brittany Bartlett [33:10]

5. Results and Impact

Cisco's strategic shift to ABX has yielded significant positive outcomes:

• ROI Improvement: Achieved a 150% increase in marketing ROI, moving from 7x to over 20x, with a target of reaching 24x ROI.
• Deal Size Growth: Observed two to five times larger deal sizes in high-target accounts, contributing to a 30% increase in close ratios.
• Enhanced Customer Engagement: Successfully expanded customer relationships across multiple technology groups, leading to multi-year, multi-architecture opportunities.
• Flagship Success Story: Secured a $350 million opportunity by aligning sales and marketing efforts, demonstrating the effectiveness of the ABX strategy.

“We have had in three years 150% improvement in ROI. We went from 7x ROI to over 20.”
— Brittany Bartlett [34:50]

6. Key Quotes

• “This is how we define it. So I'll just tell you when I talk about ABX, for us, this is the go to market strategy.”
  — Brittany Bartlett [22:45]

• “We are really happy about where we're headed in terms of the changes that we've made in our target accounts.”
  — Brittany Bartlett [35:20]

• “We're focused on making sure that we can carry this journey forward and bring all of our people in our organization with us with that.”
  — Brittany Bartlett [36:00]

7. Conclusions and Insights

Cisco's transformation to an Account Based Experience strategy exemplifies how large B2B companies can achieve significant growth and ROI improvements by strategically aligning sales and marketing efforts. Key takeaways from Cisco's journey include:

• Prioritization is Crucial: Focus resources on high-growth accounts rather than spreading efforts thin across numerous targets.
• Data-Driven Strategies: Leverage advanced analytics and AI to inform decision-making and identify the most promising opportunities.
• Integrated Team Structures: Foster close collaboration between sales and marketing teams through structured processes and regular communication.
• Continuous Investment in Talent and Tools: Ensure teams are equipped with the necessary skills and technologies to execute the new strategy effectively.

Brittany Bartlett's insights offer a practical roadmap for B2B marketers aiming to optimize their demand generation strategies within resource-constrained environments.

Notable Quotes:

1. “We think of ABX as a very coordinated customer centric go to market that aligns sales and marketing as well as our investment in resources to our highest growth opportunity in accounts.”
   — Brittany Bartlett [00:00]

2. “It was a really, really hard conversation to have. But we had to do that because otherwise we were peanut butter spreading our very, very limited budget and resources around the whole globe.”
   — Brittany Bartlett [09:50]

3. “We have a marketing database of contacts and a sales database of contacts. How crazy is that?”
   — Brittany Bartlett [31:10]

This episode provides valuable lessons on prioritizing high-impact accounts, leveraging data for strategic decisions, and fostering tight alignment between marketing and sales teams to drive substantial business growth.