An ideal Account-Based Marketing (ABM) strategy requires some work. It’s a frequent process that takes time to perfect. Although ABM requires a long-term commitment, seeing measurable results on ROI from your program doesn’t.
There are a few crucial KPIs and metrics that help to check if you are making progress. This article will help you understand four useful KPIs to focus on to determine long-term ABM positive results, and also three metrics to better measure short-term goals to keep you fired up.
Measure What is Vital to a Long-term ABM Success
It’s a necessity to always measure the things that effect changes. That means forgetting the craze with individual leads and rather focus on a different set of funnel metrics. The lead-based model, related to standard demand generation is designed to help you when you’re working with a larger scale and limited resources at your disposal. ABM provides you the chance to be more detailed and more attentive to how you go after success.
Over the long term, your ABM program should be measured on these four KPIs:
Simply, measuring this KPI can be done in terms of overall money contribution and also by differences in average deal size and number of opportunities per targeted group.
A successful ABM program shows in the number of accounts with active demand, you should see an increase in the number of deals that you are involved in. If the win percentage stays the same, this increases total wins. Definitely, if wins don’t increase, something else is happening. Together with Sales, you will need to find out why new at-bat are converting to deals at a lower rate.
Time Spent by Buyers in Each Stage of the Buying Process
Your strategic plans to map the buyer’s journey will become shorter. The number of time buyers need to spend in each stage of their journey is lessened, because you are now providing them more vital content that hastens their research and decision-making stages.
Total Account Scores
Going by your target accounts list, you can measure the productiveness of your marketing activities and investment on how these accounts are scoring. If you are using a marketing automation solution with an ABM configuration, the system will sum up the contact lead scores (based on profile and behavior/ engagement) to produce an account score. Another method for measuring is to export your contacts and scores into a pivot table. Then, you can add up the contact scores to see an “account score,” or you can view how many accounts have reached a specific score threshold.
Measuring Short-term KPIs to Track ABM Program Progress
Despite the importance of the four metrics mentioned above for proper evaluation of programs, for most businesses, it will take some months (or years) to fully see the impact of an ABM program. Performance increases over time as ABM programs grow, but to protect your program from falling by the wayside, it is advisable that you implement some short-term leading signs that give the team something to keep them motivated and their eyes fixed on the goal. In the early days of an ABM program, teams can maintain focus by preparing reports on the following:
Coverage of Account
This is a database metric for measuring how good a team is doing at creating the contact and the account intelligence needed to successfully cover opportunity potential at the account level. You should rate your growth by the number of people within your database, as well as your capacity to provide account level insights, such as competitor set, figures of active demand engaged, improved content resonance, etc.
Immediate Conversion Rate
You should see a quick increase in account-to-meeting conversion rates if you are updating your lead scoring model and focusing campaigns on targeted accounts. When this occurs, it’s a clear sign you have the right accounts on your target list. Without this increase, you should be thinking about re-evaluating your list to make sure you are truly focused on active demand
Increase in New Opportunities
Your sales cycles will most likely take a long time, but you should start seeing a probable revenue impact from your ABM efforts. New opportunity generation is a fantastic proxy method for tracking short-term progress with your Sales team, even if those opportunities have a low probability of closing because the team is not yet fully comfortable with the new approach
For your ABM performance, it is advisable to set both short- and longterm KPIs. Most times, organizational support for ABM wanes after 90 or 180 days when you actually need about three full sales cycles to see the full impact.