Tap Into Top 9 ABM Metrics to Determine Your Campaigns Success
- May 11, 2022
- 6 min read
70% of marketers leverage account-based marketing (ABM) today, with 80% of them reporting improved customer lifetime value (CLTV) with it.
ABM definitely outperforms all other marketing activities when it comes to generating maximum returns, but the point where most marketers get stuck is, how to measure and report ABM success?
Tracking conversions is the easy part. Apart from that, thanks to the presence of umpteen channels and customer touchpoints, evaluating your campaigns’ performance can be a real challenge.
Therefore, in this blog post, we will discuss the key metrics that you should track when running your ABM campaign to measure its effectiveness. Let’s begin.
Top 9 ABM Metrics You Should Track
1. Marketing Qualified Accounts (MQA)
One of the key goals of metrics-based marketing is to eliminate the transfer of unqualified marketing leads to the sales team. The benefit is that there are more high-quality accounts in the pipeline; the disadvantage is that it takes more time to scrutinize, analyze, and qualify accounts.
You will need some purposeful qualifying requirements for ABM to be effective. Have your sales and marketing teams come up with a definition for this. Then apply it to your ABM efforts throughout the research and identification phase. Moreover, MQA is significant for benchmarking and upholding qualification standards.
2. Influenced Pipeline
Influenced pipeline is among the most important criteria for measuring the effectiveness of your ABM campaign. It concentrates on whether your ABM activities impacted accounts in your pipeline at any point in time.
The impacted pipeline is a simple statistic to track since as long as you know your target account was affected by any channel in your account-based marketing metrics strategy, you know the campaign is working.
3. Conversion Metrics
Is your intended audience taking the action you want them to take? This is an important ABM metric to track whether your aim for them is to click your ad and fill out a form, request a product demo, or visit your website.
Conversion metrics can aid in identifying key areas for improvement. If your click-through rates are high but your conversion rates are poor, for example, your message may not appropriately reflect the offer on your landing page or website.
4. Account-Based Engagement
One of the effective ways to ensure the success of an ABM strategy is personalization, but personalization is not the only key. It is time to dig further into the activity of target accounts if you are seeing a drop in engagement. Create an engagement model that counts the many ways in which an account engages.
Account engagement is a crucial ABM metric to track while reviewing and tweaking your ABM approach. For instance, if you are having greater success with an account through email marketing, it is time to ramp up your efforts.
5. Average Selling Price
The optimal ABM approach should result in a better ASP (average selling price). This is because sufficient effort and research have been allocated to prospecting the appropriate high-value accounts.
If your ASPs are not rising, you are squandering money on ABM when the previous sales and marketing model would have produced the same outcomes at a larger volume. Measuring ASP as a measure is useful for determining the true value of ABM, as well as analyzing MQAs and establishing product-market fit.
6. Sales Cycle Length
As your campaigns are more customized, targeted, and successful, adopting a metrics-based marketing approach frequently correlates to a shorter sales cycle duration.
Tracking the length of your sales cycle will help you optimize your transaction closing process, even if it is a natural process. Divide the entire duration for each sale completion by the total number of deals to arrive at the average cycle length.
7. Pipeline Velocity
ABM is a bespoke approach to marketing and sales. With ABM, you can see deals closing effectively and rapidly, but you will still be unclear about the efficacy until you have tracked pipeline velocity. In a nutshell, pipeline velocity refers to the time it takes for an average deal to go through the phases and conclude.
If your pipeline velocity for ABM deals is not greater, you should reconsider your ABM initiatives. Pipeline velocity is a useful indicator for discovering sales possibilities and bottlenecks, as well as determining how long it takes to achieve a final yes/no decision on accounts. It is also useful for analyzing how your current sales cycle compares to prior ones when using an ABM strategy.
8. Customer Churn Rate
ABM is not only for companies, marketers, and sellers; it also provides customers with a better purchase experience. This is why it is essential for you to track the customer churn rate that you acquire through the ABM strategy.
Moreover, tracking churn rate is critical if you want to retain ties with your post-sale customers. After making a contract, creating hyper-personalized advertising and engaging deeper with your accounts will assist in preventing churn.
9. Return on Investment
87% of marketers believe that ABM generates a greater ROI as compared to other marketing tactics. So, another important account-based marketing metric to watch is the return on investment.
At the end of the day, you are trying to figure out how effective your campaign was. You should have standards to go by if you have previous data from your marketing and sales activities.
Before you clinch any business deal, you may want to establish a rough estimate of how much you will need to spend on average when beginning with a new campaign. If your new campaign begins to cost more than typical without a corresponding return on investment, you will need to rethink your strategies.
Tracking the KPIs of your campaign is essential to know its impact on your business. Or else, you may end up piling up huge marketing expenses without any valuable returns.
Before running your campaigns, you need a framework that helps track everything from engagement to response to outcome. And ABM is a tried-and-true method.
If you are looking for a trusted ABM partner, our digital marketing experts at Growth Natives have worked with businesses in the past to help them scale with focused ABM efforts. To share your specific needs, shoot us an email at firstname.lastname@example.org.