The account based marketing seems to be on the everyone’s mouth these days. But the question is what account based marketing is? How can you measure the ROI of your account based marketing efforts?
ABM is a targeted approach to marketing in which you focus your account based marketing efforts on a specific set of high-value accounts.
In this article we have mention about the tips of measuring account based marketing and best practice of increasing ROI.
What is an ROI?
An ROI that is return on investment, is a measure of how much money you make in relation to how much you spend.
In terms of marketing, ROI is the number of new customers you gain divided by the cost of acquiring those customers.
For example, if you spend $1,000 on marketing and acquire 10 new customers as a result, your ROI would be 10%.
There are several ways to measure your marketing ROI. The crucial thing is to track leads and conversions so that you can keep a track of marketing activities and sales.
You should also track your customer lifetime value so that you can see how much each customer is worth to your business over time.
By tracking these metrics, you can adjust your marketing budget and activities to maximize your ROI.
Tips for Measuring the ROI of ABM
The several ways are there to measure the ROI of your account based marketing efforts. Here are some tips to get you started:
- Keep track of the revenue generated from account based marketing campaigns. This can be done by keeping track at sales data or use of analytics tools to measure conversions from campaign.
- Compare the cost of account based marketing activities and the revenue generated. This will let you know about how effective the campaigns in terms of generating return on investment.
- Use of surveys and customer reviews to measuring the impact of account based marketing campaigns.
- Keep track of website traffic, leads generation, and sales pipeline progression to measure the success of account based marketing efforts..
ROI means Return on Investment. A positive ROI indicates that the investment is generating a profit, while a negative ROI suggests a loss.
Account based marketing
Account-Based Marketing is a strategic marketing approach in which a business focuses its marketing and sales efforts on a specific set of target accounts, rather than a broader, more generalized audience.
Sales Tracking and Reporting
Sales tracking and reporting are essential for measuring the ROI of your account based marketing efforts.
There are a few key things to keep in mind when tracking sales:
- First, you need to identify the specific metric or metric s that you will track. This could be anything from number of new deals created to total contract value or customer lifetime value.
- Second, you need to set up a system for tracking this data. This could be as simple as creating a spreadsheet or using a CRM system.
- Finally, you need to ensure that you are consistently recording and reviewing this data. This will allow you to spot trends and make necessary adjustments to your account based marketing strategy.
Measuring Pipeline Contribution
- As the saying goes, “you can’t improve what you don’t measure.” The same is true of your account-based marketing efforts.
- If you want to see a return on your investment (ROI), you need to know how to measure it.
- There are a few different ways to measure the ROI of your account-based marketing efforts. The most important thing is to choose the metric that best aligns with your overall goal.
- One way to measure the ROI of your account-based marketing efforts is by looking at the number of deals won.
- This metric can be further broken down into the number of deals won at each stage of the sales pipeline.
- Another way to measure the ROI of your account-based marketing efforts is by looking at the value of each deal won.
- This metric can be particularly helpful if you’re selling high-priced products or services.
- Finally, you can also look at measures such as customer lifetime value (CLV) or customer churn rate.
- These metrics can help you understand whether your account-based marketing efforts are making a positive impact on your business over time.
- No matter which metric you choose, it’s important to track it over time so that you can see how your account-based marketing efforts are impacting your business goals.
Calculating Customer Lifetime Value
- Customer lifetime value (CLV) is a metric that captures the total value of a customer to a business over the course of their relationship.
- CLV has traditionally been used by businesses to inform marketing and retention strategies, as it can help uncover which customers are most valuable and worth investing in.
- More recently, CLV has also been used as a metric to assess the ROI of account-based marketing efforts.
- ABM is a type of B2B marketing that focuses on targeting and engaging key accounts with personalized messages and touch points.
- When determining the ROI of your account based marketing efforts, CLV can be a helpful metric to consider. To calculate CLV, you will need data on your customer’s purchase history, frequency of purchase, and average order value.
- This information can be gathered through surveys, customer interviews, or data analysis.
Best Practices for Increasing ROI
When it comes to measuring the ROI of your account-based marketing efforts, there are a few key best practices you can follow to ensure you’re getting the most bang for your buck.
Once you have the right metrics in place, be sure to actually track them over time so you can see how your account based marketing efforts are impacting your bottom line.
Don’t forget to factor in the indirect benefits of ABM when assessing your ROI.
Setting Clear Goals and Objectives
When it comes to your account based marketing (ABM) efforts, one of the most important things you can do is set clear goals and objectives.
This will ensure that you are able to measure your return on investment (ROI), and make necessary adjustments to improve your results.
Some tips for setting clear ABM goals and objectives:
- Define how the success looks like for company. What are your overall business goals? How can ABM help you achieve these?
- Consider the specific accounts you want to target. What are their unique needs and challenges?
- What would success look like in terms of engagement with these accounts?
- Create measurable objectives that tie back to your overall goals.
- Set a timeframe for each goal or objective.
- This will help you track progress and ensure that you are staying on track.
- Make sure your goals and objectives are realistic and achievable.
- Start small and build up as you see results from your efforts.
Leveraging Available Technology
There are many ways to measure the return on investment (ROI) of your account based marketing efforts.
However, with so many options and metrics to choose from, it can be difficult to know where to start.
Here are a few tips and best practices for measuring the ROI of your ABM campaigns:
- Define your goals and objectives. What are you hoping to achieve with your ABM campaign? Make sure you have specific, measurable goals in mind before you begin.
- This will help you choose the right metrics to track and measure later on.
- Consider the entire customer journey. Don’t just focus on leads or conversions; consider all touch points throughout the customer journey.
- By understanding how customers interact with your brand at each stage of their journey, you can better measure the ROI of your account based marketing efforts.
- Track key metrics over time. Use analytics tools to track key ABM metrics such as reach, engagement, conversion rate, and lifetime value (LTV).
- By tracking these metrics over time, you can see how your ABM campaigns are performing and make necessary adjustments along the way.
- Use multiple methods of measurement. Don’t rely on just one metric to measure the success of your ABM campaigns.
- Use a variety of methods, including surveys, interviews, focus groups, and financial analysis, to get a well-rounded view of your ROI.
- Communicate your results
A/B Testing Strategies
- The most important part of A/B testing is finding a metric that you can track and optimize for.
- Once you have found this metric, you can start to experiment with different tactics and strategies to see what works best for your company.
- There are a few different ways to go about A/B testing. The first is to create two versions of your marketing campaign and then track which one performs better.
- This can be done by looking at things like click-through rate, conversion rate, or engagement rate.
- Another way to do A/B testing is to randomly select a group of people to receive one version of the campaign, and then another group to receive the second version.
- This is known as split testing and can be used to test things like email subject lines or ad copy.
- Once you have collected enough data, you can start to analyse it to see what worked and what didn’t. From there, you can make changes to your campaigns accordingly.
- By constantly testing and iterating, you can slowly but surely improve your results over time.
Measuring an ROI of your account based marketing efforts is a key element of ensuring success. Using the various tools available and following these tips and best practices can ensure that you are able to fully assess the effectiveness of your efforts so that you can refine and optimize future campaigns for even better results.
By being diligent in tracking performance, it is possible to identify areas for improvement, save time and money, increase ROI on campaigns, and improve customer engagement rates and more.
Taking advantage of the numerous insights offered by measuring an ROI will help maximize your return on investment both now and in the long run.