Account-based marketing (ABM) is a powerful, proven marketing strategy that sees the alignment of sales and marketing teams to target and convert high-value accounts. It involves keeping sales and marketing activities highly relevant, engaging, and focused on best-fit accounts having the highest revenue potential for your business.
If you want to truly benefit from ABM, you need to measure it by tracking the right metrics. Here are five crucial KPIs you need to track to measure your ABM campaigns.
1. Engagement
Engagement is mainly a top of the funnel metric that’s tracked when measuring ABM success. It helps you know which accounts are having high or low engagement with your brand. This enables you to customize your messaging and other strategies in ABM according to the level of engagement.
Engagement also lets you know the rate at which contacts within accounts are taking action. You could expect target accounts to take any type of action, such as responding to your direct mail, interacting with your social posts, responding to your ABM emails, filling up a web form, visiting a landing page, etc.
2. Opportunity accounts
It’s one of the most important ABM KPIs you need to track as it lets you know how better you are at turning engaged accounts into opportunities. Additionally, it allows you to know whether your sales and marketing departments are really aligned. It also enables you to know how effective your sales and marketing campaigns are in terms of ABM success.
An opportunity account could be defined as an account within a specific target segment with at least one opportunity opened. This is a critical ABM KPI that tells you whether you’re able to convert an engaged pipeline into an opportunity pipeline.
3. Average selling point (ASP)
With ASP, you can know whether you’re targeting the right accounts in your ABM campaigns. Since you only focus on high-value, best-fit accounts in ABM, you benefit from greater selling probability and a higher ASP.
You also need to track the number of accounts a sales rep works per month, the rate at which accounts convert into customers, the time required for conversion, and the average deal size to calculate your sales velocity. In ABM, sales velocity will let you know how quickly the revenue is flowing in.
4. Churn rate
In ABM, you focus on quality more than quantity. ABM requires you to develop and maintain long-term, meaningful relationships with target accounts and customers. Also, it costs more to win a new customer than to retain an existing one.
Your job doesn’t end after closing a deal. It’s recommended to also focus your ABM efforts on the post-sale audience to maximize your revenue. See to it that you track your churn rate and customer retention rate to know how effective your ABM efforts are and whether they’re moving in the right direction. These KPIs are also important to measure your ABM ROI.
5. Marketing influence
This KPI enables you to know how much your marketing efforts have influenced your closed won revenue and existing pipeline. It’s a great metric to measure in ABM to know whether best-fit accounts are being targeted enough by your marketing efforts. It takes into consideration all of the marketing channels you use, namely event, direct mail, email, display, etc.
Other than the ABM KPIs discussed here, it’s important to track touchpoint completion rate, sales cycle length, customer lifetime value, and return on marketing investment. Don’t forget to track your coverage: Do you have complete data for contacts within target accounts? Have you covered all the important contacts within target accounts? Having access to comprehensive, accurate, and verifiedB2B data can help you improve your coverage.
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