Sales and marketing teams always struggle to penetrate and sell to enterprise decision-makers. Since the traditional methods of cold calling and carpet bombing rarely work in B2B marketing, reliance on account-based marketing (ABM) is increasing every day. Different companies use different tactics and channels to execute and measure ABM. Further, a standard ABM strategy may not work for all since the requirements are not the same.
“If marketers are willing to harness the power of ABM, they need to think beyond mere execution. Measurement and reporting are key to the success of ABM, for it gives the stakeholders a clear picture of its real performance.”
Though marketers use different metrics to measure the success of their programs, they are expected to attribute ABM efforts to revenue and business growth.
Data and analytics are the key drivers of an ABM strategy. As mentioned earlier, the metrics can vary according to the strategy. Therefore, it is important to decide the metrics that need to be measured. Below are a few of the most common metrics today’s ABM marketers count on:
Deal Speed
B2B marketing folks are used to lengthy sales cycles. Also referred to as deal velocity and pipeline acceleration in marketing parlance, the speed of deal closure is a key metric. That’s because wasted time equals wasted money. In the traditional sales approach, speed was about converting the maximum number of prospects to customers in a given timeframe. On the contrary, ABM is not only about leads; it’s more about the number and size of deals related to a select set of accounts. That’s precisely the reason why B2B campaigns are tailored to engage the right people in the right accounts in the right manner.
Conversion Rate
Let’s take an example. 20 calls, four prospects and one deal closure – does that ring a bell? No doubt, that’s a non-ABM approach. The traditional concept of moving a customer from the top of the funnel to the bottom of the funnel still holds good. However, the accent of ABM is on the number of deals closed within an account during a specified period. If the numbers are not too attractive, then it’s time to question the viability of the account itself.
“Increasing ABM conversion rates largely depends on how the marketer engages with many stakeholders (decision-makers and influencers) within the account.”
Since overdependence on one account is not safe, ABM plans also include a targeted number of accounts to be closed during a defined period.
Revenue
Every marketing activity is aimed at generating higher revenues. Although ABM is no exception, it generally yields results in the long haul. Although numbers matter, marketers always aspire to have accounts with large deal sizes in their kitty. That’s because it’s easier to move the needle on revenue targets. Most ABM campaigns are designed to upsell and cross-sell to existing accounts, aside from bagging new clients (accounts). This metric helps segregate the performing and underperforming accounts. Meanwhile, in a study, 84%1 of marketers said that ABM helped retain and expand existing client engagements, which increased the company’s revenue.
Conclusion
An effective ABM program results in the alignment of marketing and sales. The program can’t succeed if the two critical functions work in silos. As per a study, companies that aligned sales and marketing generated 208%2 more revenue through their promotional campaigns. A well-structured ABM campaign also helps product marketers identify potential gaps and issues, and quickly course-correct before it’s too late. As the concept of ABM continues to become popular, the tactics and technologies supporting it are also getting smarter.
References:
https://martechseries.com/mts-insights/interviews/interview-david-kerr-ceo-octiv/
