Account-based marketing is a hot topic in the B2B space right now.
ABM can be a great way to improve your ROI. But with so many different metrics to track, it can be hard to identify which ones count the most for account-based marketing (ABM).
It’s necessary to track the right metrics to ensure that you’re getting the most out of your efforts. What are the key metrics to trace to ensure success?
Below are seven account-based marketing metrics that matter.
Account-Based Marketing Metrics You Should Keep an Eye On
Web Traffic by Account
Web traffic by account is one of the Account-based marketing metrics you should keep track of. It is essential because it potentially measures the success of account-based marketing campaigns.
By tracking the number of unique visitors who visit a company’s website from a specific account, businesses can measure the efficacy of their account-based marketing efforts and determine whether or not they are reaching their target accounts.
Furthermore, web traffic by account can be administered to identify which accounts are profitable to a business and allocate resources accordingly.
This metric measures the amount of web traffic coming to your website from specific accounts that you are targeting amidst your account-based marketing efforts.
Once you notice an increase in web traffic by account, your efforts are working and you are acquiring more traffic from the accounts you are targeting.
Moreover, businesses can use web traffic by account to determine which accounts are the most valuable to their business and focus their marketing efforts on those accounts.
Engagement is an essential metric to account-based marketing as it measures how interested the prospect is in a company’s product or service.
Engagement can be determined by how often a prospect interacts with content or advertisements from a company, whether they have clicked on a link, opened an email, or how long they have spent on a company’s website.
High engagement levels indicate that a prospect is highly interested in what you have to offer and is more likely to convert into a customer. Low engagement levels, on the other hand, suggest that a prospect is not interested in your product or service and is less likely to convert.
By tracking engagement, companies can better understand which prospects are most interested in their product or service and focus their marketing efforts on those individuals. As a result, you can better assess the effectiveness of your account-based marketing efforts and make necessary adjustments to improve your results. Companies that use account-based marketing can see a higher ROI on their marketing campaigns.
Engagement is a good indicator of overall success. If you can victoriously engage with potential customers, therefore your marketing is up and running and you are on the right track.
Average Contract Value
The average contract value is a fundamental metric to account-based marketing as it can help you determine whether or not a particular lead is worth pursuing.
ACV is calculated by dividing the total contract value of all closed deals in a given period by the number of closed deals in that period.
This metric can be used to measure the success of account-based campaigns by comparing the ACV before and after a campaign.
If the average contract value for a particular lead is low, then it may not be worth your time and effort to pursue that lead.
However, if the average contract value is high, it may be worth your time to pursue that lead.
Additionally, average contract value helps you determine your customer’s lifetime value. It’s a key metric for any business.
Deal velocity is a necessary metric for account-based marketing in providing insights into how well your account-based marketing strategy is performing regarding the convention of your leads into customers.
A high velocity indicates lots of activity and potential deals in the pipeline. If deal velocity is low, perhaps an indication that your target accounts are not interested in your product or that your marketing efforts are not reaching the right people. By tracking deal velocity, you can make necessary adjustments to your strategy to improve your results.
At the same time, velocity can be applied to benchmark a company’s sales pipeline against its competitors.
Target Account Reach
Target account reach is an important metric to account-based marketing as it can indicate how successful a campaign has been in reaching its target audience.
For a successful outcome, account-based marketing must be highly targeted, so it’s necessary to measure how successful it is in reaching its intended audience. Furthermore, target account reach can be applied to compare the success of different campaigns and determine where to allocate resources for future campaigns.
Activity-Based Sales Metric
Activity-based sales metric is a fundamental metric to account-based marketing as it measures opportunities being built resulting from marketing activities. It is a key performance indicator (KPI) for gauging the effectiveness of marketing campaigns and programs.
Different types of activity-based sales metrics can be administered in account-based marketing.
Number of Touches Made by Sales Representatives
One usual metric is the number of touches a sales representative has with a potential customer. It can include types of interaction, such as a phone call, an email, or a meeting.
Number of Opportunities Created
Another customary metric is the number of opportunities created resulting from interactions with potential customers. It includes both the opportunities that result in a sale and opportunities that result in a meeting or some sort of engagement.
Number of Closed Deals
Lastly, the conventional activity-based sales metric is the number of closed deals resulting from interactions with potential customers. It helps you track the effectiveness of your account-based marketing efforts.
Outcome-Based Sales Metrics
In addition, it can help identify which marketing channels are producing the most opportunities. This information can be beneficial to allocate resources more effectively and improve marketing ROI.
There are three main types of outcome-based sales metrics in account-based marketing: revenue, pipeline, and customer churn.
Revenue-based metrics track how much money a company makes from a certain account. It can include total contract value, annual contract value, or any other metric that measures how much profit a company makes from a customer.
Pipeline-based metrics track how many potential customers do a company is targeting within a specific account. It can include the number of leads generated, the number of opportunities created, or any other metric that estimates how many potential customers are being targeted by a company.
Customer churn-based metrics track how many customers a company loses from a given account.
There are a variety of account-based marketing metrics that companies can use to measure the success of their campaigns. However, not all of these metrics are equally important. In bringing out the best results, businesses should carefully weigh the most relevant metrics they should keep an eye on.