The New Metrics for Measuring
the Account-Based Funnel
You’re likely familiar with the traditional demand generation
waterfall. This model is based on a marketing strategy that
is lead-centric and volume-based. The goal is to generate a
large quantity of leads and efficiently pass them through
each funnel stage. It’s a great model when you have a
volume velocity business.
However, in many B2B organizations, this model falls short.
With the rise of account-based models and
account-centric thinking, there’s a need to rethink how to
measure results.
Why?
In short, Account Based Marketing is about quality and
not volume.
There are many reasons for this. First, the leads brought
into the funnel are not always a good fit for your business
(lower ASP, higher churn, etc.). Also, selling B2B involves
‘buying centers’, which adds complexity and length to your
sales cycles.
None of this can be measured with traditional demand gen
metrics. You must find a new way to determine if your ABM
efforts are successful. You need an account-level view.
The New Account Funnel
TARGET ACCOUNTS
AWARE ACCOUNTS
ENGAGED ACCOUNTS
OPPORTUNITIES
CUSTOMERS
How to Transition to
Account-Based Metrics
Don’t count the people you reach; reach the people that count.”
- DAVID OGILVY
You can’t wait a year to see results [in ABM]”
In order to make this transition to account-based metrics, you’re need to put some
- MEGAN HEUER, SIRIUSDECISIONS foundational pieces in place. This will ensure that your team is focused on the right
things and allow you to measure outcomes at the account level.
Here are 5 metrics that you must track in ABM: LEAD-TO-ACCOUNT MATCHING: This maps all leads in your CRM
and marketing automation platform to their respective accounts so
your data is clean, organized, and current.
COVERAGE – Do you have sufficient data, coverage and account
plans for each target account? If leads are not tied to accounts, you can’t begin to measure
engagement at your most important accounts. Furthermore, leads get
routed to the wrong account owner, leads don't get scored and
AWARENESS – Are the targets aware of your company and nurtured properly, and, ultimately, the customer has a bad experience.
its solutions?
Lead-to-Account Matching also gets both sales and marketing
speaking and thinking the sales language – the language of accounts.
ENGAGEMENT – Are the right people at your key accounts
ENGAGEMENT MINUTES: Measuring engagement means asking
spending time with you? Is that engagement increasing over time? are the right people at the right accounts spending time with the right
people in your organization?
Before someone spends money with you, they’ll spend time with you.
REACH – Are marketing programs reaching the right
The more time they spend, the more interest they’re showing in doing
accounts? Is there any waste?
business with you. That’s why measuring and scoring accounts by
“Engagement Minutes” is the most effective metric to demonstrate
interest within a potential account.
IMPACT – How are the ABM activities improving sales
outcomes, such as deal velocity, win rates, average
contract values, retention, and net promoter scores? MARKETING QUALIFIED ACCOUNTS: This is a target account (or
discrete buying center) that has reached a sufficient level of
engagement to indicate possible sales readiness.
In traditional demand generation, companies use Marketing Qualified
These new ABM FROM TO
Lead (MQL), to designate a lead deemed worthy to be handed off to
metrics don’t
sales. But in ABM, instead of relating to an individual person, they
replace traditional People Accounts
align to target accounts. While the MQL relates to one lead ready to
metrics, like leads, Leads Opportunities go to sales, the MQA related to one account ready to go to sales.
pipeline, and
Personas Buying centers
revenue, but rather
complement them. Quantity Quality
L EA R N M O R E AT EN G AG I O.CO M /A B M - M ET R I C S