Measuring the success of your account-based marketing campaigns is a lot like measuring the success of any other marketing program, except this time, you’re restricting your measurements to key accounts.
Your KPIs will depend on your business goals and the types of campaigns you’re running, but they all should have one thing in common: a focus on accounts rather than leads. Check out the following eight metrics that matter for account-based marketing (and five that don’t).
8 Metrics That Matter for Account-Based Marketing
1. Marketing Qualified Accounts
With account-based marketing, you’ll shift from marketing qualified leads (MQLs) to marketing qualified accounts (MQAs), which provide a much more comprehensive picture of your prospective customers.
In order for an account to be labeled as an MQA, it must fit your ideal customer profile (ICP) and meet a predetermined level of engagement among multiple contacts at that account. Accounts that don’t fit each parameter of your ICP shouldn’t necessarily be disqualified, but they should require a higher level of engagement to be considered MQAs.
Tip: Take a tiered approach to ABM — in which you prioritize accounts.
- Named Target Accounts – Accounts with a very high customer lifetime value and strategic importance and warrants a more complex, drawn-out sales process
- Tier 1 – Perfect ICP fits, similar to your highest value customers. Also includes logos with strategic value.
- Tier 2 – Strong ICP fits but have a lower lifetime value.
- Tier 3 – Fit most, but not all, ICP criteria. Worth pursuing, but typically not worth investing significant resources to win their business.
The level of necessary engagement will differ by tier. Because Tier 1 accounts are your top priority, they’ll need a lower level of engagement to be considered MQAs than Tier 3 accounts. If you’re using account grading within your marketing automation platform, on the other hand, you may consider any account with a B+ grade and a specific level of engagement to be qualified.
2. Engagement Rate
Are your target accounts engaging with you? Look at whether accounts are clicking on ads, have a high-velocity score, or are visiting your website. With ABM, you should focus on increasing engagement with the entire account — not just a single lead. You can also look at the account’s score within your marketing automation platform to determine engagement levels.
3. Reach Within an Account
How many net-new contacts did you reach with your ABM campaign? This metric is a great indicator of brand awareness. At a macro level, it can also give you insight into the size of your typical customer’s buying committee and help you target your marketing more effectively.
4. Pipeline Velocity
Did your account-based marketing campaign move accounts through your sales process faster and ultimately close deals faster? What is the timeline of stage progression from the first touch to opportunity? How about from opportunity to closed-won deal?
5. Conversion Rates Throughout the Funnel
Did your ABM campaign increase the number of target accounts that progressed to the next positive stage in your sales cycle? This metric can be measured by many different parameters depending on the stage of the sales process and your business goals, but some common goals to track include meetings set, opportunities created, and target accounts converted to customers.
What is the return on your investment for each account-based marketing campaign? It’s important to note that the ROI will not be immediate because ABM is a long-term business strategy and not a quick fix. You should wait at least the length of your average sales cycle before you start measuring the ROI of your ABM efforts.
7. Marketing Influence
Since B2B sales are typically complex with multiple touchpoints and long sales cycles, there is rarely one tactic or touchpoint that is responsible for an opportunity being created or a deal being closed. Because of this, it’s important to understand which deals marketing influenced and where in the sales process the influence occurred. By comparing that data to deals that were not influenced by marketing touches, you’ll be able to measure marketing’s influence on the pipeline, ROI, and the sales process overall.
8. Churn Rate
What percentage of customers that are being targeted by an ABM campaign churn? Is this number lower than your overall churn rate?
5 Metrics That Don’t Matter for Account-Based Marketing
Traditional lead-based goals and metrics do not directly apply to account-based marketing. Remember, your goal is to speak the same language as your sales team — and that language does not include the word lead because it’s all about the account!
Let’s take a look at some metrics that should not be used to track the success of your ABM campaigns.
- Net-new leads
- Marketing qualified leads (MQLs)
- Form fills/web conversions
- Click-through rate
- Cost per click
That’s not to say these metrics don’t matter at all. While these numbers are still indicators of engagement and shouldn’t be disregarded completely, they should not be considered primary success metrics in most ABM campaigns. For more, check out this post on 5 Lead-Based Metrics that are B.S.
Using account-focused KPIs to track success — and optimizing your marketing campaigns based on your results — will help you build the most impactful ABM program and demonstrate ROI for your organization. In other words, you’ll knock your C-suite’s socks off.
Closing Thoughts on Measuring ABM Success
If your goal of a campaign is form fills to find new leads, then that’s lead generation. You’re not doing account-based marketing. Flip that funnel, ditch that form fill metric, and look at new ways to engage contacts in target accounts.
Click the banner below to download the Blueprint to Account-Based Marketing and read page 46 on how to measure ABM success.