On this week’s episode of By Marketers for Marketers, Jason Widup, VP of Marketing at metadata.io, and Mark Huber, Metadata’s Director of Growth, discuss how to measure ABM.
As a marketer, you have to manage several different programs at once, from ABM to Demand Generation to Brand campaigns. In this episode, we’ll go over the different ways to measure each of of them, and how to think about about the different metrics.
Too often, marketers fail to educate every side on why metrics for ABM are different than traditional demand generation metrics. Non-marketers too often lack a nuanced idea of what makes a campaign successful, and get caught up asking about leads. Instead, help them understand WHY you’re measuring what you’re measuring.
Don’t assume that everyone knows what a certain KPI is, or to which list it’s assigned. You don’t have the exact same goal for each program that you run, so educate others on why they should be measured differently. Make sure there’s collaboration on what each team decides a target account is.
It’s common to monitor incoming web traffic from target accounts to identify the high-value pages on your website, or to see where specific accounts are engaging. Clearbit, for instance, will identify a person and their company based on their IP. Google Analytics or other databases will use this information to report what percentage of your target accounts are coming to the website for the first time, and how that number increases over time.
It’s normal to measure target engagement, but what exactly does engagement mean? For some, it’s an ad impression, and for others it is an actual account.
It’s good practice to assume that engagement doesn’t start until someone clicks through an ad. Once they’ve arrived on a site, how long do they stay? Is this their first, second, or fifth visit? Does their engagement indicate that the ad resonated with them in some way, do they have a reason to come back?
If there is only one visitor from a certain account, that might not necessarily be a success; they could be a rogue attracted by a particularly good headline. We need at least two people from the same company to label it an engagement, or a deep engagement from a single visitor.
From first touch, to lead and opportunity creation, to closed won revenue, it’s important to have well-defined stages and different strategies for each milestone. Clearly identifying customer stages allows you to determine how quickly a customer moves from one stage to the next.
Clear stages will also help you identify what is causing the overall velocity to go up or down. For instance, is the opportunity to close taking forever? Why? Looking at each piece helps you diagnose solutions, especially because the velocity for ABM and Demand Generation programs can look very different. Finally, don’t wait until the end to measure velocity: know what your timestamps should be as they happen.
Deal size is indicative of value of a product, as well as the complications in acquiring it. A huge deal size means more considerations for the customer (as opposed to a small, impulse purchase), and different deal sizes means different types of marketing. Big, enterprise deals often mean a customer journey.
How many of the opportunities created are you winning, compared to baseline for Demand Generation programs? Win rate should be measured from opportunity creation. If you have your opportunities defined right, they should be close together.
After you conclude ABM program, do a thorough analysis of the customers that came through to closed-won revenue, what the attributes of these accounts are. How does that compare to your goal, and how can you refine your ICP for future success?
Now that you know what you want to measure, it’s time to figure out your baselines, or how you set your goal.
Avoid setting goals based on benchmarks from other companies. It’s much better to identify a rate that has worked for you or that you want to improve, and recognize it’s about improvement rather than hitting a certain number. Look at trends over a certain amount of time and set goals based on that. On the flip side, don’t be afraid to stretch your goals: a good goal should require that you be creative in reaching it.
We find the Objective and Key Result framework to be useful. Set stretch goals–the ones you’re afraid to say out loud–as well as achievable initial goals that showcase your strengths. If you hit lots of your stretch goals, pat yourself on the back, but if you’re hitting all of your stretch goals, it might be time to push yourself harder.
Finally, and most important, marketers forget to do a post mortem and learn from what they’ve done. If you don’t immediately meet the goals for your campaign, don’t just move on, optimize what you have! You may have gotten a good amount of it right.