Account-Based Marketing Metrics: The 3 Rs of ABM

Account-Based Marketing (ABM) focuses on personalized campaigns. The goal is to focus its attention on specific accounts or organizations. But how do you measure the results?

Well, we’ve got three words for you.

Relationships.

Reputation.

Revenue.

These account-based marketing metrics are the foundation of every successful ABM program. However, there is a lot to take into account.

Stay tuned as we learn more.

Define Account-Based Marketing

Relationships

Identify key stakeholders and engage in meaningful conversations with them. Develop points of reference and advocates. Build strong relationships.

Reputation

Boost your credibility by building relationships with new companies, and creating named accounts. Build your reputation in new markets.

Revenue

Grow your pipeline to earn faster and bigger. Enter new markets and sell new products. Increase your deal sizes.

Account-Based Marketing vs. Traditional Lead Generation

Before we continue, let’s address some obvious questions you are bound to have right now. Questions like: What are the benefits of account-based marketing? Why pick it over traditional marketing strategies?

First off, we are not saying that one is not better than the other. Both have their applications, and you should always choose the one best suited to your business.

Having said that, traditional marketing usually tries to target everyone through wide marketing campaigns that cover TV commercials, online ads, traditional press, billboards, and so on.

It is all about getting your message across to people, and being noticed. While you typically want to reach a large audience, there might be little to no results from doing this.

Consequently, account-based marketing focuses on grabbing the attention of an individual within a company, most commonly a key decision-maker.

ABM uses tailored campaigns that address the pain points of the target audience. This strategy requires more time and effort than traditional lead generation, but it can also be highly effective in driving sales and bringing high-quality leads.

Account-Based Marketing	Traditional Marketing
Identify target companies	Attracts people to your website
Engage them with personalized campaigns	Nurture them with relevant campaigns
Build long-term relationships that lead to future opportunities	Identify target companies

Account-Based Marketing Metrics: Beyond the 3 Rs

1. Target Account Engagement
2. Customer Advocacy Level
3. Customer Satisfaction Scores
4. Customer Lifetime Value
5. Sales Rates
6. Average Deal Size
7. Churn Rate
8. Conversion Rate

1. Target Account Engagement

ABM measures the engagement level of your target accounts. This includes email open rates, content downloads, and website visits.

Of course, a higher engagement rate means that your content and overall message resonate with your target audience.

2. Customer Advocacy Level

Happy customers are good for businesses in more than one way. They can refer new clients to your business, share testimonials, and ultimately be your best advocates.

An account-based marketing approach should always monitor the level of customer advocacy. Track the number of testimonials, referred customers, and case studies.

Also, you can analyze the impact of advocacy actions on new customer acquisition to determine whether it has been effective enough.

3. Customer Satisfaction Scores

Keep in mind that an account-based marketing strategy aims to combine marketing and sales efforts. One way to do this is to regularly monitor customer satisfaction.

One metric to follow is NPS (Net Promoter Score). Make sure to look at customer reviews, and try to understand where your team fails to deliver. Feedback from your sales and marketing team is important as well as they may have more insights on what needs to be improved.

4. Customer Lifetime Value

Customer Lifetime Value (CLV) is just as important as new customer acquisition. After all, ABM is not just about getting new clients. It is also about nurturing existing relationships with customers and determining their long-term value.

An important metric to follow here would be the annual contract value (ACL). It represents the revenue generated from each customer contract on a yearly basis.

5. Sales Rates

Naturally, making sales is among the most significant parameters to consider. According to account-based marketing, best practice is to try to reduce the long sales cycles.

Close more deals faster means more revenue, and that sounds like the ultimate goal for every company.

6. Average Deal Size

Ideally, you would want your average deal size to be as large as possible. The results from this metric can also help you establish whether the alignment between sales and marketing has been done sustainably and successfully.

7. Churn Rate

This key performance indicator measures the rate at which target accounts decide to end their relationship with your company. The churn rate not only helps find problems or gaps in ABM efforts but also takes proactive steps to keep and care for customers.

8. Conversion Rates

Converting targets into paying customers is the end goal of an ABM campaign, as it is with pretty much any other marketing endeavor.

Calculate your account conversion rate, and if the number doesn’t make you happy, think about steps you can take to improve your process.

Final Words on Account-Based Marketing

Hopefully, you now understand account-based marketing metrics a bit better. An ABM strategy might take more time and resources to execute, but more often than not, it gives you the results you desire.

By focusing on the individuals, and the decision-makers, and developing a long-lasting relationship with them, your business can benefit from more opportunities.

What is more, your customers are more likely to vouch for your company, and encourage others to join.