Key Performance Indicators to monitor your account-based marketing effort
“ABM, or Account-Based Marketing, is becoming increasingly popular in B2B marketing.
With the help of new technology, companies can now target and advertise to potential clients in a more precise manner. However, measuring and attributing the success of these efforts can be a challenging task.”
Measurement and optimization
The ability to optimize advertising in real-time is a crucial advantage of account-based advertising. With ABM technology, marketers can experiment with different advertising creative through A/B testing and quickly replace underperforming assets. Some software even allows for a side-by-side comparison of advertisements to determine the most effective color schemes, copy, and calls-to-action for target audiences.
However, a focus on account-based prospecting often makes conventional success measurement methods redundant. Metrics such as net-new leads, marketing-qualified leads (MQLs), web conversions, click-through rates, and cost-per-click cannot be directly applied to account-based marketing.
Therefore, what are the best metrics for marketers to use in an account-based marketing strategy?
The metrics you’re looking for
“The most appropriate marketing KPIs will differ across industries, however the following list provides a good starting point and highlights the account-based perspective required for accurate measurement and optimization.”
1. Marketing-qualified accounts (MQAs)
Moving from the standard evaluation of MQLs to MQAs offers a comprehensive view of potential customers. Once you establish your ideal customer profile (ICP), it’s crucial to establish clear standards for what qualifies an account. For instance, multiple interactions from a single account would indicate a strong qualification. However, it’s important to be flexible and not automatically dismiss accounts that don’t meet every qualification criteria.
2. Engagement Rate
Due to the unclear nature of the term “engagement”, it’s crucial to quantify this metric for target accounts. Ad clicks or website homepage visits can be useful indicators of engagement, but it’s important to consider engagement across the entire account, not just a single lead. Marketing automation platforms often collect this type of information to calculate an “account score” that can be used to monitor engagement.
3. Reach within an account
In simpler terms, this metric measures the number of additional contacts within a company that were reached by the campaign. Keeping track of this post-campaign metric can provide a broader view of brand awareness within the account, rather than just focusing on the engagement of one individual. It can also give insight into the size of the customer’s typical purchasing group.
4. Pipeline Velocity
Comparing the sales cycle speed of ABM with a conventional lead nurturing campaign is always informative. A good way to begin is to measure the average time from initial contact to the opportunity stage, and then from the opportunity to a successfully closed deal. With personalized messaging, ABM is expected to be more efficient in advancing customers through the conversion process, as well as reaching those already further along in the funnel.
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Check it out5. In-funnel conversion rates
In addition to tracking the pace at which converted accounts progress through the sales funnel, it’s important to have a detailed view of which accounts move to each stage and when. Establishing the criteria for each stage of the funnel should be the initial step. Commonly monitored objectives include scheduled meetings, generated opportunities, and converted target accounts.
6. Marketing influence
What is the impact of your marketing efforts on sales and vice versa? B2B sales are often complex with numerous touchpoints and longer sales cycles, making it challenging to identify a single point of influence for opportunities or conversions. This highlights the significance of comprehending how each aspect of the sales and marketing process affects the outcome.
To evaluate the sole impact of marketing, compare data on sales known to have been influenced by marketing with those that were not.
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