What to measure and optimize with account-based marketing
Wednesday 25-08-2021 09:00
In Part Four of his Guide to Account-Based Marketing, Gavin Dimmock, EMEA vice president and general manager for Terminus, looks at the measure.
If you’ve been following Terminus’s Account Based Marketing (ABM) blogging series, you will remember reading in the last article that evaluating and optimizing your ABM campaigns is the most important step. vital and most final of building your strategy. Without this step, there is no way to concretely show the impact of your hard work. Let’s dive right into learning how this is done!
ABM is a very dynamic approach. As target accounts become interested, begin to engage with your brand, and begin their customer journey, they should receive relevant content for the stage. However, ABM optimization is very different from traditional inbound marketing optimization. For legacy inbound marketers, optimization means increasing the number of completed forms and lowering cost per lead (CPL).
On the other hand, ABM marketers optimize multiple parts of their funnels with one goal in mind: more revenue, faster. At the end of the day, hitting income goals is the only thing that really matters. No salesperson or executive will care how many leads they gain if they don’t turn into customers afterwards. Account-based marketers not only optimize the top of their funnels, but they also measure pipeline speed, new deal rates, and even customer retention and expansion.
What you need to optimize
The most important points to edit and refine (in descending funnel order) are:
CPM and CPC
Optimize cost per impression (CPM) and cost per click (CPC) by alternating ad creatives, refining target account lists, and, if you’re a Terminus customer, working with your Digital Media Manager to receive coverage and maximum advertising spend efficiency.
Refine the number of engaged accounts (and their engagement level) by creating stronger messages aligned with personalized web pages or content experiences. Immersive, frenzy-worthy content is a great way to achieve this.
Opportunity creation rate
Increase the number of target accounts that become new opportunities by refining your account engagement framework. This is comparable to the lead qualification frameworks in traditional inbound marketing. Work with your sales teams to encourage them to pay close attention to target account lists.
Increase the speed at which your opportunities become customers by deploying automated phased campaigns that deliver relevant content to their opportunity stage. Decide what content is needed to help prospects make a purchase with your sales teams. They talk to customers and prospects every day (virtually or in person) so that no one understands their needs better.
Increase the percentage of target accounts that become customers by creating tighter target segments that receive more personalized ads and messaging. Refine your ideal customer based on your most important customers today.
Account-Based Marketing KPIs
The most important ABM metrics to measure typically include:
- Target accounts
- Target accounts committed
- Creating Target Account Opportunities
- Target accounts earned
- Customers retained (net retention)
- Extended clients (gross retention)
For a deep dive into these KPIs and their corresponding steps, check out this infographic.
If this list seems overwhelming, remember that whatever you choose to measure (and not measure) has an impact on your decision making. By focusing on the entire funnel, you’ll create better, holistic, and consistent brand experiences for prospects. As a result, it will give you a strong competitive advantage in the form of confidence.
Metrics that don’t matter
As a marketer in today’s inbound obsessed world, you’ve probably measured “leads” as an important KPI at some point in your career. Unfortunately, leads are a poor and unreliable indicator of income, given that less than 1% of all leads become customers. While you should never dismiss a hot lead, it just isn’t as important as it once was. That’s why only 9 percent of major ABM programs care about and measure leads. Stop wasting time and dedicated resources focusing on prospects!
ABM has become the modern gold standard for B2B marketing because it has a strong focus on efficiency. How? ‘Or’ What? By focusing on the most likely buyers for your business and dedicating resources only to them. This tactic allows you to spend more time creating great experiences and interactions with a smaller, specific audience that is much more likely to purchase your product or service. If you’re still hesitant to move away from lead measurement, consider a competitor who personalizes relevant resources for a lead you’re targeting at the same time. Who do you think is most likely to win this account? Ditch the leads and measure the opportunities instead. Opportunities are a much more powerful indicator of revenue and better match what your sales teams measure. When both sales and marketing are focused on the same goal, you will have a much higher potential to meet and even exceed your revenue expectations. Remember: if you are trying to sell to everyone, you are not marketing to anyone.
Marketing and sales must now own opportunities together at all stages of the funnel. Revenue teams today have endless segmentation capabilities with a wealth of first-party and third-party data, more channels than ever, and analytics to measure success every step of the way. Soon ABM will become the dominant revenue strategy for today’s leading B2B companies because it is focused, smart and efficient revenue growth. Terminus can help you with all of this and more – schedule a demo today!