Account based marketing metrics you should keep track of

As a marketing data analyst, I know how important it is to track the right metrics to measure the success of your marketing campaigns. Account-Based Marketing (ABM) is no exception. If you're running ABM campaigns, it is crucial to measure the right metrics to understand the performance of your campaigns and optimize your efforts accordingly. In this article, I'll cover the top ABM metrics that you should be tracking to measure the success of your campaigns.

What is Account Based Marketing (ABM)?

Before we dive into the ABM metrics, let's first understand what ABM is. ABM is a B2B marketing strategy that focuses on targeting specific accounts with personalized campaigns. The goal of ABM is to create a more personalized and targeted experience for your target accounts, resulting in better engagement and higher conversion rates.

ABM is a departure from traditional B2B marketing, where marketers would cast a wide net and hope to catch as many leads as possible. With ABM, marketers focus on a smaller set of high-value accounts and create customized campaigns that speak directly to the needs of those accounts.

How these metrics will help your account based marketing

Tracking the right account based marketing metrics can help you measure the success of your campaigns, identify areas for improvement, and optimize your efforts for better results. Here are the top ABM metrics that you should be tracking:

Total addressable market (TAM)

Total Addressable Market (TAM) is the total number of accounts that fit your ideal customer profile. It's important to know your TAM as it helps you understand the size of the market and the potential revenue opportunity. Knowing your TAM can also help you prioritize your target accounts and allocate your marketing resources accordingly.

To calculate your TAM, you'll need to identify the characteristics that define your ideal customer profile. This could include things like company size, industry, revenue, and location. Once you've identified these characteristics, you can use market research and data analysis to estimate the number of accounts that fit your ideal customer profile.

Marketing qualified accounts (MQA)

Marketing Qualified Accounts (MQAs) are accounts that have been identified as potential customers based on their engagement with your marketing campaigns. MQAs are not just leads; they are accounts that have shown a high level of interest in your products or services and are more likely to convert into customers.

To track MQAs, you'll need to define the criteria that qualify an account as an MQA. This could include things like website visits, content downloads, webinar attendance, and social media engagement. Once you've defined your MQA criteria, you can use marketing automation tools to track and score accounts based on their engagement with your campaigns.

Influenced pipeline

Influenced Pipeline measures the impact of your ABM campaigns on your sales pipeline. It tracks the number and value of opportunities that have been influenced by your ABM campaigns. Influenced pipeline is a more accurate measure of your ABM success than looking at closed-won deals alone because it takes into account the impact of your campaigns on deals that are still in progress.

To track influenced pipeline, you'll need to work closely with your sales team to identify the opportunities that have been influenced by your ABM campaigns. You can then use your CRM system to track the value of these opportunities and measure the impact of your ABM campaigns on your sales pipeline.

Conversion rate (win rate)

Conversion rate, also known as win rate, measures the percentage of opportunities that have been won. It is a critical metric for measuring the success of your ABM campaigns because it shows how effective your campaigns are at driving conversions.

To calculate conversion rate, you'll need to divide the number of won opportunities by the total number of opportunities. You can then track this metric over time to see how your conversion rate is trending and identify areas for improvement.

Customer acquisition cost (CAC)

Customer Acquisition Cost (CAC) measures the cost of acquiring a new customer. It includes all the marketing and sales costs associated with acquiring a new customer, including salaries, ad spend, and marketing automation tools.

I've talked about how important CAC and CLV is for any business here. You can read more about CAC and how you can calculate it her.

To calculate CAC, you'll need to add up all the marketing and sales costs associated with acquiring a new customer and divide that by the number of new customers acquired in that time period. Tracking CAC is important because it helps you understand the cost of acquiring new customers and identify ways to optimize your marketing and sales efforts to reduce costs.

Annual contract value (ACV)

Account Value or Annual Contract Value (ACV) measures the total value of a customer account over a year. It is an important metric for understanding the revenue potential of your customer accounts and prioritizing your sales efforts accordingly.

To calculate ACV, you'll need to take the total value of a customer's contract and divide that by the length of the contract in years. Tracking ACV is important because it helps you prioritize your sales efforts on high-value accounts and understand the potential revenue impact of your ABM campaigns.

Sales cycle length

Sales Cycle Length measures the amount of time it takes to close a deal. It is an important metric for understanding the efficiency of your sales process and identifying areas for improvement.

To track sales cycle length, you'll need to measure the time it takes to move an opportunity through each stage of the sales process. You can then use this data to identify bottlenecks in your sales process and optimize your efforts for faster sales cycles.

Conclusion

Tracking the right ABM metrics is essential for measuring the success of your campaigns and optimizing your efforts for better results. By tracking metrics like Total Addressable Market, Marketing Qualified Accounts, Influenced Pipeline, Conversion Rate, Customer Acquisition Cost, Account Value, and Sales Cycle Length, you can gain valuable insights into the performance of your ABM campaigns and make data-driven decisions to improve your results.

So, start tracking these ABM metrics today, and see the positive impact they can have on your marketing campaigns.

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