You would continually underperform if you tracked your account-based marketing (ABM) campaign using traditional metrics. This is because traditional metrics don’t take into account the long-term goals of ABM. Instead, you need to track unique account-based marketing metrics to stay on top of your campaigns’ performance.
Learn the top eight metrics that provide a comprehensive look at your ABM strategies and where you need to improve.
- Account-based marketing looks at the long-term value of accounts rather than short-term wins
- Use several metrics together to gain a more comprehensive overview of your account’s performance
- Customer acquisition costs, average deal size, and annual contract value are all three required to calculate your ROI
How Account-Based Marketing Metrics Differ from Traditional Metrics
Traditional metrics focus on numbers. You want a high number of quality leads, a high percentage of conversions, and high sales. However, you won’t be dealing with thousands of leads when working with account-based marketing strategies.
Instead, with account-based marketing metrics, you’re focusing on a handful of high-quality accounts. You will take time to nurture those accounts, get to know them individually, and build a loyal relationship with them. That loyal relationship will turn into more lifelong sales.
So, when you track account-based marketing metrics, you look at the long-term picture those metrics build instead of how close you are to meeting quarterly quotas and short-term sales goals.
However, ABM metrics are challenging to measure since you don’t always see results immediately. On average, 23% of marketers say measuring and proving ROI is their top ABM challenge. ABM metrics work best when you use them together to build a broader image instead of looking at the individual aspects of ABM campaigns.
8 Account-Based Marketing Metrics Every Marketer Should Track
These are the top eight ABM success metrics for account-based marketing strategy to help you see continued sales growth.
1. Account Engagement
Account engagement measures what businesses are saying about your company. These metrics are at the heart of your ABM strategy and build a bridge between identifying and converting accounts.
Some examples of account engagement include:
- Social media likes and shares (especially on LinkedIn)
- Content shares
- Comments and messages
- Ad clicks
- Email opens
These metrics tell you about your reputation and how well you connect with your target audience.
Compare your engagement to your total impressions. For example, if you shared a LinkedIn post with a network of target accounts, how many accounts liked the post compared to the total number of accounts that saw it? Or if you sent an email, what percentage of recipients opened it?
2. Target Account Coverage
Your target account coverage is how much data you have on an account. Aim to have 100% coverage for the accounts you target. Then, strive to have around 75% coverage of key decision-makers within the business.
The average B2B buying committee has 7 to 20 professionals. So the more data you have on those individuals in addition to the business, the greater your chances of converting the business through personalized marketing strategies.
Data integrity will degrade over time, so you must maintain your database through regular cleanings and updates to keep those account coverage percentages high.
3. Pipeline Velocity
The speed at which your leads move through the sales pipeline tells you how efficient your process is. It also indicates potential hold-ups in your strategy and areas to improve so accounts move faster.
ABM has a different pipeline from traditional marketing, so expect the nurturing stage to take much longer. However, you don’t want it to take too long, as that leaves time for your competition to move in and persuade your account to choose them.
Account-based marketing sales cycles can take anywhere from a few weeks to several months, depending on the complexity of your products and the size of the sale. Then, you continue your campaigns to maintain the accounts’ loyalty and encourage them to recommend you to others.
4. Customer Acquisition Costs (CAC)
Your customer acquisition costs are how much you spend to convert one new account into a loyal customer. These costs are crucial to your ROI formula, as you need your return to outweigh the costs.
The CAC of ABM will be higher than traditional marketing since you invest more in a few high-value accounts rather than spreading your budget over a larger market.
5. Conversion Rate
ABM conversion rates include more than just sales. You can also count small conversions. For instance, how many of your accounts signed up for a free trial, joined a webinar, or joined your mailing list?
These small conversions lead to the final sale, so if not many accounts take small steps, you need to adjust your strategy before asking for a significant commitment.
6. Annual Contract Value (ACV)
The annual contract value is your customer’s annual value based on the contract size. This is easiest to calculate if you sell a service or product with an annual subscription. Though you can also calculate the number of products or supplies an account will likely purchase annually based on the business’s needs and growth potential.
This metric helps you calculate a customer’s lifetime value. If you only look at an account’s value based on its first purchase, you won’t see the whole picture. Annual contract value shows how that purchase leads to more profit over time.
This calculation is another piece of your ROI puzzle.
7. Average Deal Size
Average deal size is the revenue from closed deals. This might be a product they purchase or a subscription they sign up for. The revenue a company wins from a deal is the most popular ABM metric marketers use.
This is the last piece of your ROI calculation, as you will compare your average deal size to what you invested in converting customers. However, you’ll also add the annual contract value to calculate the customer’s potential lifetime return.
8. Deal Close Rate
Your deal close rate is the percentage of your total accounts you closed in a set timeframe. A high percentage says your strategies are effectively converting accounts. Meanwhile, low percentages indicate a marketing issue.
If you have a low percentage, use your other metrics to identify where you’re losing accounts and improve those areas to boost your deal close rate.
An ideal close rate depends on your industry, so set benchmarks based on past performance and future potential.
Access the Metrics You Need to Succeed at ABM
Televerde gives you comprehensive insights and metrics on your target accounts so you can reach your ideal customers more effectively. Use our expert team of ABM specialists to research, target, nurture, and convert more accounts.
Contact us to learn more about our ABM services and reporting.