If your business is ready to embrace account-based marketing, congratulations! “Your goal is to shift away from stuffing the top of the funnel to focusing only on those accounts that have a high chance of converting,” as Jess Burns states in a Business2Community article.
As a result of this shift, you will be looking at very different metrics to determine if you’re making progress with sales goals – than you did for traditional marketing tactics.
Along with measuring metrics like revenue, pipeline, and closed-won deals, there are six other account-based metrics you should track.
Account-based marketing, also known as “key account marketing,” is a strategy in which a business targets specific prospects and then tailors their marketing efforts to that niche.
A targeted strategy that focuses marketing efforts on one company that fits within the parameters of the ideal customer. There are no blanket campaigns.
Also known as ABM, this type of marketing is the complete opposite of traditional marketing. Account-based metrics accepts that various people are involved in the B2B decision-making process. It also focuses on the different viewpoints all of those people have when they are making a decision.
ABM doesn’t try to attract a lot of companies and then filter out all of the bad leads to end up with only a couple that could be interested in a product or service. Instead, marketers who use this tactic focus on one company they know will be interested and then devote all of their energy to attracting that company.
Marketers who use ABM don’t rely on blanket campaigns that are meant to appeal to an entire market. These campaigns can be time-consuming and are sometimes ineffective. When you try to appeal to the masses, it’s almost impossible to appeal to any individual.
Instead, with ABM, marketers create extremely targeted and personalized campaigns to attract particular accounts. You probably know the expression “There are a lot of fish in the sea.” And while that may be true, ABM focuses only on one fish and does everything in its power to catch it.
Watch this video to get a clear illustration of exactly what account-based marketing looks like in a real scenario.
Just like traditional and inbound marketing differ, there are also differences between inbound and account-based marketing. We’re not saying one is better than the other; the best approach largely depends on your business goals. And many organizations will use some form of both approaches.
However, according to statistics, 92% of B2B marketers consider ABM extremely or very important to overall marketing efforts.
That being said, let’s look at the strengths of account-based marketing:
ABM and inbound marketing share some metrics, such as funnel conversion rates. However, account-based marketing has some of its own specific metrics. Below are listed the key ABM metrics every marketer should be aware of and track.
This presale awareness metric is extremely important and it’s positioned at the very top of the demand funnel. To measure web traffic by account, you can create a list of IP addresses for your target accounts, using reverse IP lookup tools.
IP-verified website visits will help you understand how your target accounts are engaging with your content. If you notice an increase in web traffic from target IP addresses, that means awareness is growing. The health of your ABM strategy is indicated by the number of website visits from target accounts.
This engagement metric provides insight into when your leads are qualified. The most important factor in tracking engagement is time.
The main question to answer here is “How much time are my target accounts spending engaging with my content?”
A tactic you can take with this metric is to focus on taking data from various general activities such as:
If you focus your attention on engagement scores, you’ll be able to create a clearer picture of your target accounts, how they interact with your data, and who to focus on.
There are three different ways you can approach ABM:
No matter which approach you take, you always need to track your account reach to know if you’re wasting time with an ABM strategy.
Average Contract Value (ACV) shows you how profitable your strategic ABM planning is. It also shows you how a change in strategic direction would affect profitability by tracking changes in the value of a new closed-won account over a certain period of time.
Additionally, ACV can help you decide which strategic organizational changes you can make. This includes expanding your business into new geographical territories or introducing new product lines.
This metric shows how fast a prospect moves from the sales opportunity stage in the ABM funnel and becomes a closed-won customer. Deal velocity is crucial for planning, as marketers use it to understand the length of the sales cycle.
It’s also used to show how any changes made to the ABM strategy will affect changes in this metric.
Deal velocity can be looked at in two ways:
Finally, there are some account-based marketing metrics that should be looked at after you’ve already made a sale. These include:
The data you collect will help drive a successful account-based marketing strategy.
Be sure to look at all of the data separately, and then together, to get a big-picture view of your accounts.
And don’t forget that the number of leads isn’t the most important factor. Who your leads are and how interested they are is what matters more in the ABM world.
When you monitor your account-based marketing metrics, you’ll be able to continuously optimize outreach activities and work on customer relationships.
About the author:
Marcus Svensson is a Head of Growth at Albacross, a sales intelligence software that helps companies learn more about their anonymous website visitors and convert them into leads. Passionate about creating value, human connection, and positive impact. You can follow him on Twitter and LinkedIn.