It’s becoming more and more difficult for mass-awareness tactics to compete with the automated account-based marketing that’s happening on huge scales in 2023.
As a modern marketer, you know that personalized, account-based B2B marketing is the wave of the future. If you’ve already taken the steps toward designing your own ABM campaigns and are using them in the field, the next step you’ll need to take is learning how to analyze the effectiveness of those campaigns.
Here are 15 of our account-based marketing KPIs and metrics to track when performing account-based marketing:
1. Return on Investment
The classic marketing metric: ROI is the revenue generated from your ABM efforts divided by the amount you invested in them.
ROI is important because it will help you understand if your account-based marketing efforts are bearing fruit. A negative ROI means you’ll need to reevaluate your strategy from the ground up. However, even a positive ROI has room for improvement.
There are multiple ways to increase ROI. You can focus on increasing the size of your deals, increasing the volume of your deals, or becoming more efficient and reducing your investment. The following metrics can help you decide which of these strategies is best for increasing ROI.
2. Churn Rate
Churn rate measures how many of your customers are leaving during a given period. This is most often tracked in the form of subscriptions to a software service.
Churn rate is also incredibly important because maintaining existing customers can be almost as valuable as attracting new ones.
In addition, a high churn rate could point to some problems with your ABM efforts once the prospect has come out of the bottom of your funnel. Increasing churn rate means finding a way to keep those customers satisfied for longer.
3. Customer Acquisition Cost (CAC)
CAC is similar to ROI. It’s the measure of how many dollars you spend on marketing divided by the number of new customers gained over a specific period.
You should optimize your CAC metric by including only the cost of top-of-funnel advertising. This ensures that you’re only keeping track of relevant spending. After all, money spent to keep an existing customer is money well spent but won’t increase your CAC.
4. Conversion Rate (Win Rate)
Your win rate is the number of deals you successfully convert divided by the number of deals you had the opportunity to convert.
Conversion rate is somewhat flexible: You can define an opportunity in any way that makes sense to you. In general, if you feel that a sales representative had a legitimate chance to convert the sale, this should count toward your win rate.
5. Social Media Engagement
Engagement is fairly easy to track when it comes to social media. Take a look at your social media’s likes, comments, shares, followers, and subscribers. In general, more is better!
However, make sure to keep track of your sentiment as well. You may be getting a ton of comments on your new ABM campaign materials, but are they positive or negative comments? A human touch is required here.
6. Campaign Engagement
You can measure ABM campaign engagement in many ways. Take the example of email marketing, where the following metrics can help you gauge your campaign engagement:
- Email open rate
- Email response rate
- Email click-through rate
Though these examples are specific to emails, the idea of tracking campaign engagement can be extended to any advertising campaign, like website banner ads or even paid search results.
7. Customer Lifetime Value (CLV)
CLV is a measure of how much revenue you’re getting from a customer during their entire lifecycle, from the moment they first come on board to when you part ways. Increasing CLV can be just as valuable as attracting new customers.
8. Customer Satisfaction
Closely related to CLV is customer satisfaction: How happy are your current customers, and how likely are they to remain that way?
9. Pipeline Engagement or Pipeline Influence
It’s important to keep track of whether your marketing materials are accurately directing customers into your sales pipeline.
To check this, just keep track of how often your ABM materials are creating opportunities.
10. Total Available Market (TAM)
This metric tracks how much available revenue there is in your industry. Essentially, how much revenue would your company gain if you managed to convert every company in your niche and box out all your competitors?
11. Buyer Persona
Your buyer persona is somewhat abstract, but you can make several concrete observations about them that will help you gauge their effectiveness:
- What’s the ROI on your personas? How much effort are you putting into creating them vs. how often their use leads to conversions?
- Are there commonalities across many customers that should be added to your ideal buyer persona?
- How likely are your ideal customers to convert? A low rate may tell you if your industry is highly saturated or if your persona needs updating.
12. In-Market Accounts
Similar to TAM, you can keep track of in-market accounts by noticing how many companies exist in your industry that display an interest in buying your product (or a similar one).
Deciding the number of accounts you’re going after can help you decide if you should use a one-to-one, one-to-few, or one-to-many ABM approach.
13. Average Deal Size
Take your total revenue over a given period and divide it by the number of deals you made to get your average deal size.
Deal size is a great lever to push if you’re looking to quickly increase your ROI. Just make sure it’s not coming at the expense of lengthening your sales cycle too much.
14. Sales Cycle Length
How long does it take to convert a buyer from prospect to customer?
This should be measured from the first contact to the time the customer checks out.
Shorter is better, but don’t be too discouraged if your sales cycle takes a long time. It’s better to compare yourself to other companies in your industry to see if you’re converting customers quickly relative to others who sell a similar product.
15. Website Engagement
How often are your targeted accounts engaging with your website?
This can include things like click-throughs, browsing time, content engagement, and lead captures.
If your website is dynamic and automated, each new customer should see a personalized and targeted homepage. If you’re wondering how to achieve that at any scale, Hushly can help.
Hushly Can Make It Easy to Track and Analyze ABM Metrics
Hushly’s automated system is the best tool on the market for keeping track of the massive amounts of data needed to design and maintain excellent ABM campaigns.
We understand that optimization is a moving target. No matter how well you think you understand your target accounts or the strategy you’re using to reach them, there’s always room for a little more improvement.
In addition to our suite of automation tools, we employ sophisticated data analysis tools to help you build your ABM strategies from the ground up and keep them optimized for all of your customers.
Ready to learn more about how Hushly can help? Request a demo so we can get started on the path to mutual growth.