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How to Measure ABM: KPIs and Metrics

ABM kpis and metrics

Account-Based Marketing (ABM) is the new favourite of B2B marketers. Companies using ABM generate 200% more revenue for their marketing efforts compared to those that don’t.  ABM has the ability to convert high ticket clients with the least coordination between sales and marketing because these teams are already aligned with the objectives. Marketers save a lot of sales cycle time by repeating their intent across multiple decision-makers. The relatively save money while spending on targeted customer profiles and highly defined target audience lists.

Though these are subjective advantages of adopting ABM, you can measure the effectiveness of your ABM campaigns. Just like any other marketing campaign, ABM also uses a certain channel mix, gestation time, and tactics. But, what matters to a marketer is how well an ABM campaign has reaped results for its efforts. In simple terms, ABM’s impact on Return on Investment (ROI).

In this article, we present metrics that slice the effectiveness of an ABM campaign at each layer of the funnel. We will also take you through what these metrics explain about the outcomes.

KPIs and Metrics to Measure ABM

There are metrics that do not completely fit inside the funnel. But, for those that fit into the funnel, here is the list.

Top of the Funnel

Ads Click Through Rate (CTR): The number of people who clicked on your ads after viewing them tells you the interest that the ad created for an action to be completed. It also explains how well your audience is engaged across devices, personas, products, sales stages, and locations.

Engagement Rate: You need to assign an action to define engagement. Upon completing such action, you can count it as engagement. Engagement rate is calculated by the no.of times an action is completed, by the total no. of people who you targeted.

White Space: This is the gap that exists between the information you are looking for and the information that is available about each account. More white space would distort the effectiveness of your campaign. While less white space would help in designing more targeted communication.

Middle of the Funnel

Touchpoint Completion Rate: Since ABM is applied to large clients/prospects with multiple decision-makers and touchpoints, you need to check each one. This is a rather individual measuring statement. You need to assign an average touchpoint to each account and measure the completion rate.

Some of the touchpoints that you could begin with are email open rate, first meeting, demo day, proposal, term sheet, and sale proceedings.

ABM Marketing ReviewSales Cycle Length: ABM is also largely adopted to reduce your sales cycle time. Hence, you need to use a further optimal sales cycle length as a benchmark while measuring your ABM campaign. Personalization differentiates your ability to reduce your sales cycle. This could be measured at the middle or the bottom of the funnel.

Bottom of the Funnel

Average Selling Point: ABM promises a higher average selling point. Since you deal with fewer clients with ABM, the selling probability is higher than otherwise. It guides you if an account comes with a higher close rate or not.

Account Conversion Rate: Just like any other marketing campaign, ABM campaigns also need to be measured by their conversions. The success of your campaign largely depends on this metric carried back to the timeline.

Other Metrics

ROMI: ABM campaigns relatively may have a higher average expenditure. But, this should also translate into an equally high Return on Marketing Investment (ROMI). This is the penultimate metric that describes the health of your campaign.

LTV: Each account would perform differently. Some may opt out, while some may be constant revenue suppliers, and others add exemplary value to the entire business. The lifetime value (LTV) of each customer rewrites the value of your campaign.

Churn Rate: Preferred churn rate with ABM is at a slow pace. Since you are dealing with fewer accounts, you should ensure and expect a very slow churn rate during product usage.

Customer retention, reach, awareness, pipeline velocity, and influence are some other metrics you may choose to measure to translate an ABM campaign’s success. Apart from these metrics, you could answer the following questions to design your own metrics.

  • Are you targeting the right people on your list?
  • How complete is your account data?
  • How many of your prospects know your company vs how many of them don’t know?
  • How many have shown a dislike for your campaigns?
  • What will you use to educate them about your company? Does this increase your sales cycle?
  • How engaged, interested, and active are your prospects?
  • What are your touchpoints?

Also, since ABM involves both sales and marketing, you may want to use these metrics to evaluate different aspects of each function. Some marketers may choose to list these metrics by distinguishing them as activity-based metrics and outcome-based metrics.

On the whole, use these metrics to extract the efficiency of demand creation activities, alignment with the buyer’s critical path, and the impact on your revenue.  Should you need any help in building an initial list of metrics or specific measures to calculate activities pertaining to Account-based Marketing services, feel free to reach out to us at info@thesmarketers.com.

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