Account Based Marketing is known to be the most effective for conversion rates and ROI.
However, how can we calculate the reach of an ABM campaign? The Answer lies in Metrics.
So, what are the types of Account Based Marketing Metrics? Let’s find out in this blog.
Important Account Based Marketing Metrics
1.Basic Metrics
Metrics like engagement rates and account penetration will clarify the debate on Account Based Marketing vs Lead Generation and which drives better results.
a)Account Engagement
- The account engagement score measures the activity of an account as it interacts from 0 to 100, the higher the score the greater the engagement.
- It takes the average number of interactions of the account and its contacts divided by the number of contacts; if no contacts are assigned, then only account interactions are used.
- A weight factor decides the significance of interactions and account interactions are assigned 75% weight by default, contact interactions 25%, that means account interactions are thrice more important.
- The score helps to identify very engaging accounts and is, therefore, useful for targeting campaigns or outreach efforts.
b) Account Penetration
- Account Penetration is when the sales team takes ownership of an account, builds a strong relationship, and guides it through the sales process.
- It needs time, effort, and close collaboration between sales and marketing with clear and open communication to be successful.
2.Engagement Metrics
a)Content Engagement Rate
- Engagement rate shows how well your content connects with your audience by considering follower count.
- For example, millions of followers but few interactions suggest low-quality content, while a smaller account with high shares and comments has strong engagement.
- A low rate may mean your audience isn’t aligned with your content or you’re not creating posts they value.
- Experiment with content creation tools to build credibility, resonate with your audience, and improve engagement.
b)Ad Click Through Rate
- Ads are shown all over, but the click through rate is the number of viewers that are interested in the advertisement.
- Click-through rates measure how effectively an ad captures users’ attention.
- The higher the rate, the better the ad is at capturing interest.
- For website owners, a strong click-through rate means more money from pay-per-click ads.
3.Pipeline Metrics
a)Marketing Qualified Leads (MQLs)
A Marketing Qualified Lead (MQL) is the one who has shown greater interest in your business than leads.
He has interacted with your brand through action like filling out contact info.
It may not be a sale, but an MQL is open to the possibility of a sale and is ready for more outreach.
Examples of MQL actions:
- Downloading free trials or eBooks
- Filled up forms or subscribed to newsletters
- Added items in a cart or wish list
- Repeatedly visiting your site or clicking on ads
- Requesting more information
To be specific, an MQL is a promising lead that may move closer to becoming a customer. Identifying MQLs helps to focus efforts on those most likely to convert.
b)Pipeline Velocity
- B2B sales are becoming more data-driven, using metrics to optimize performance and reduce revenue loss.
- While common metrics like customer acquisition cost and lifetime value are well-known, pipeline velocity is a crucial but often overlooked metric.
- Pipeline velocity measures the rate of conversion.
- It reveals the efficiency of your sales process and highlights areas for improvement.
- Imagine a pipeline: if it’s clogged or leaking, flow slows down.
- A clean pipeline allows leads to move smoothly and quickly, maximizing results.
c)Win Rate by Account
- Win rate measures how many sales a company successfully closes within a given period.
- It’s calculated by comparing completed sales to total sales opportunities.
- Tracking win rate helps assess sales performance and overall financial health.
d)Account Churn Rate
- Churn rate is the percentage of the accounts who have stopped using your service.
- Notice that, Customer churn rate tells how many customers are lost, but not all customers generate the same revenue.
- Some spend more than others, so the gross revenue churn rate gives a clearer view of how churn affects profits.
- This metric is especially useful for SaaS companies and businesses that depend on subscribers and measure monthly recurring revenue (MRR).
4. Revenue Metrics
a)Account Acquisition Cost (AAC)
- Account Acquisition Cost (AAC) or Customer acquisition cost (CAC) is the cost of acquiring a new customer, including all resources and expenses involved.
- It’s a key business metric often used alongside customer lifetime value (CLTV) to measure the value generated by each new customer.
b)Customer Lifetime Value (CLTV)
- For software marketers, losing clients before earning their loyalty is a major concern.
- Measuring customer lifetime value helps retain clients and build lasting relationships.
- In fact, 25% of marketers rank CLV among their top five metrics as it boosts the effectiveness of outreach campaigns.
- CLV enables you to identify your most valuable customers, which will allow you to reach out to them with customized offers and incentives.
- It helps you to define high-value customers clearly and enhance retention.
- CLV will help you better serve your customers.
c) Average Deal Size
- Average deal size is the average revenue earned per customer or deal closed by SaaS companies.
- How to Calculate? Total revenue for a period is divided by the number of closed deals in that time.
- ACV is usually monitored monthly or quarterly and acts as a KPI.
- This metric is used to measure the performance of sales teams and also determine which price points convert more.
5.Long-Term Relationship Metrics
a)Upsell/Cross-Sell Revenue
- Cross-selling is the act of selling the customer something which is a complement to what they buy.
- Therefore, if you sell a customer a laptop, you may sell a laptop case or a mouse as well.
- Upselling is when you can get a customer to spend more money on a version of the product that they have shown interest in.
- So, if a customer looks at a basic phone, you might suggest a model with more features at a higher price.
- Both strategies increase the total money customers spend, which increases your revenue.
b)Retention Rate
- Retention rate is a metric in marketing and product management that refers to the percentage of customers who continue to use a paid product.
- It is an important metric for businesses selling subscription-based products, such as SaaS providers or businesses selling products that their customers buy repeatedly, like milk or coffee.
- It is important for companies selling recurring services, such as warranties or maintenance plans, to track retention rate.
c)Customer Satisfaction (CSAT)
- Customer satisfaction measures the level of satisfaction a customer feels after an interaction with support or after a purchase.
- Customer loyalty, on the other hand, is a persistent state.
- Customers are loyal when they consistently decide to do business with a company over time.
- It is not just a point-in-time measure; it reflects a long-term view of the health of the customer relationship.
- Good customer experience that matches the needs and preference of the buyers can prompt repeat patronage for companies.
- Achieving high levels of customer satisfaction in the near term is critical to create long-term customer loyalty.
Conclusion
Knowing and measuring essential ABM metrics at different stages of the sales and customer journey is the key to measure the benefits of Account Based Marketing and optimize your strategy for better results.
Metrics to help optimize sale strategies :Â
- Account Engagement
- Pipeline Velocity
- Win Rate
Metrics to maximize profitability :Â
- Customer Acquisition CostÂ
- Lifetime Value FocusÂ
To enhance long-term relationships and customer loyalty:
- Retention rate
- Cross-sell/Upsell revenue
- Customer Satisfaction
Working with an experienced account-based marketing agency can help businesses refine these strategies, align sales and marketing efforts, and maximize revenue potential. By leveraging the right metrics, companies can drive targeted engagement, improve conversions, and foster long-term success.
