If you’re reading this, you’ve undoubtedly heard a lot about account-based marketing or ABM. You may be familiar with the flipmyfunnel framework for ABM execution: identify, expand, engage, advocate. And if you’re one of the 58% of B2B organizations who are already dipping their toes in ABM (2016 State of ABM), you’re at least a little bit familiar with the growing ABM landscape and the challenges that come with it.
One of the biggest challenges with implementing ABM is that it requires a different mindset to a lead or demand generation marketing strategy. When you have to make the shift to thinking about prospects in terms of accounts rather than leads, a lot changes.
This is particularly true when it comes to measurement. Account-based marketing measurement is vastly different from demand generation measurement. From the top of the funnel to the bottom, the key metrics are different. And if you use demand generation measurement to try to measure your ABM, you’ll end up incorrectly optimizing your efforts.Proper ABM measurement starts with lead-to-account mapping. As the name implies, in account-based marketing, the primary unit is an account, not a lead. So to make the transition from lead-based measurement to account-based measurement, you need lead-to-account mapping.
Lead-to-account mapping ensures that marketing efforts with John from target account ABC are mapped to efforts with Jane from ABC and everyone else at ABC, so that their customer journey can be seen as a whole account, rather than as two or more individuals.
Once you have lead-to-account mapping, the rest of the key metrics can be measured for ABM.
Top-of-the-Funnel ABM Metrics
At the top of the funnel, marketers must measure Account Awareness and Account Lead Conversion. These are about reaching the right accounts and making sure they have awareness and early engagement with your company.
Middle-of-the-Funnel ABM Metrics
At the middle of the funnel, marketers should be gauging key persona engagement. Are the right people within the target accounts engaging? How often are they engaging and have you found an internal champion? At this stage, marketers can identify certain engagement signals that indicate that accounts are ripe for sales teams to begin their outreach.
Ideally, these mid-funnel metrics roll up into an engagement score or grade for each account, which allows the sales team to prioritize their efforts.
Bottom-of-the-Funnel ABM Metrics
The first two bottom-of-the-funnel metrics are opportunity pipeline velocity and win rate. Opportunity pipeline velocity is an important gauge of readiness at the bottom-of-the-funnel. When accounts are moving faster through the funnel, there is momentum for the sales team to capitalize on. What ABM efforts are driving faster velocity? Why do some accounts move slower than others? You need to measure velocity to find out. And of course, faster velocity tends to correlate with higher win rates.
This brings us to to the next metric: win rates. Measuring win rates allows for bottom-of-the-funnel marketing and sales analysis, such as: When we attend conferences, are win rates higher when we do sales dinners or 1-on-1 meetings with the key decision-maker at target accounts? Insights from win rate analysis allow organizations to make efficient decisions about where to invest at the bottom-of-the-funnel.
And, finally, the last and most important bottom-of-the-funnel ABM metric is revenue. At the end of the day, marketers need to measure their ABM efforts in a such way that they can allocate their resources and optimize their efforts to generate revenue and positively impact the bottom line.
For a complete discussion of the key ABM metrics that matter, download the Definitive Guide to Account-Based Marketing Measurement.