For running a successful business, you need to recognise what works and what fails when engaging with your customers. According to a study, account-based marketing has been adopted by over 94.2% of businesses, and the number is rising steadily.
Account-based marketing has become so popular because it enables companies to work on complicated deals with ease. However, for your ABM strategy to bear fruit, it is essential to measure and analyse your efforts. This is the only way you will understand whether your ABM tactics are helping you in approaching your goals and what improvements need to be made to do so.
Here are some of the best ways of measuring the effectiveness of an account based marketing strategy for your company:
Average Deal Value
The average deal value for an ABM customer must be higher than other customers. Some accounts are targeted and selected because they are more likely to provide you with higher values when the deal closes. The sales representatives need to spend more time engaging with these leads, which have to be justified by the bigger deal size.
However, if this is not applicable for your business, you must evaluate the criteria for finding target accounts. It is essential to find the right companies that will help you to close a bigger deal.
Rate of Engagement
The ABM strategy dictates that the sales team provide customised and personalised outreach and content to some target accounts. This essentially means that both the marketing and the sales teams need to spend more time designing advertisements and other outreach material like emails that suit a particular account. This, in turn, helps you to bring them into the funnel.
It is expected that such personalisation will lead to higher rates of engagement, especially from these campaigns. You must hence monitor the engagement rate very carefully to see whether these campaigns are paying off or not. This is a good way of understanding if you have chosen the right target accounts. Even after providing specific outreach content, lower rates of engagement generally indicate that you must re-evaluate the target account list.
Evaluating your win rates reflects the quality of targeted accounts and whether your account-based marketing strategy works well with these accounts. When you find the best fitting target accounts and provide them with an excellent experience, you should be able to close at higher rates than other inbound leads.
The inbound leads are people who have taken an active interest in your product themselves. Hence, there is a bigger possibility that most of these accounts will be ruled out as they would not fit your ideal customer profiles or the buyer persona. On the other hand, the leads that the ABM strategy has targeted must provide a higher rate of success.
This does not essentially mean that you will get to strike a deal with every lead gathered with the help of an ABM strategy. However, as these are handpicked accounts, you must see a higher win rate with them rather than from the inbound accounts.
Length of Sales Cycle
There is a misperception that the sales cycle is shorter for ABM accounts than other ones. However, this is not true because you cannot expect the sales cycle to be shorter as you will have to spend a lot of time and energy on customising an experience for a potential target account. This means that you will have to start with the marketing team and design experiences to become your customers. It is hence futile to limit how much time you should spend on a target account.
However, this is an important metric that has to be measured to identify themes and patterns in your ABM strategy. The length of the sales cycle relies on the target account you are trying to close at a time particularly. It is crucial to keep in mind to provide potential accounts with what they need precisely when needed. So there is no point restricting the length of the sales cycle.
There is no denying that measuring the success of your ABM strategy is the only way to make it better. You must try to measure the success of your campaign at every level and not just after its deployment. It is important to use metrics of all kinds: the top of the funnel, the middle of the funnel, and the bottom of the funnel.
When you identify and measure the account-level metrics, you will be able to use the data for improvement in future campaigns and make your ABM strategy a successful endeavour.