The ROI of Sales Funnel: How to Measure and Improve Your ABM ROI | Funnelpreneurs

The ROI of Sales Funnel

Account-based marketing (ABM) has gained popularity as a marketing tactic among B2B businesses in recent years. Instead of casting a wide net, ABM involves targeting specific accounts with personalized messaging and content to generate and boost sales. To ensure that you are getting the most out of your marketing budget, it is crucial to monitor the return on investment (ROI) of your ABM efforts. In this blog, we will examine the crucial metrics you need to monitor to assess the effectiveness of your ABM approach and provide advice on how to raise your ABM ROI.

What is Account-Based Marketing (ABM)?

ABM is a strategic approach to B2B marketing that involves targeting specific accounts with personalized messaging and content. The goal of ABM is to build strong relationships with key accounts and generate more revenue from those accounts over time.

To measure the success of your ABM strategy, you need to track a range of metrics that reflect different stages of the sales funnel. Here are three key categories of metrics to consider:

Account Engagement Metrics

Account engagement metrics measure how engaged your target accounts are with your marketing efforts. These metrics can include:

• Website visits
• Content downloads
• Email opens and clicks
• Social media engagement
• Event attendance

By tracking these metrics, you can gauge how interested your target accounts are in your products or services and adjust your messaging and targeting accordingly.

Pipeline Metrics

Pipeline metrics measure how effectively you are moving target accounts through the sales funnel. These metrics can include:

• The number of target accounts in each stage of the funnel
• The time it takes to move accounts from one stage to the next
• The conversion rates at each stage

By tracking these metrics, you can identify areas of the funnel that need improvement and optimize your messaging and targeting to better support the sales process.

Revenue Metrics

Revenue metrics measure the actual revenue generated from your ABM efforts. These metrics can include:

• The total revenue generated from target accounts
• The average deal size
• The length of the sales cycle

By tracking these metrics, you can determine the ROI of your ABM strategy and identify opportunities for improvement.

Calculating ABM ROI

Once you have identified the key metrics to track for ABM success, the next step is to measure the ROI of your ABM strategy. Here are two key ways to calculate ABM ROI:

1. Compare the revenue generated from your ABM efforts to the cost of your ABM program. A simple formula to use is:

[ABM ROI = (Revenue from ABM – Cost of ABM) / Cost of ABM]

For example, if you generated $100,000 from your target accounts and spent $10,000 on your ABM program, your ABM ROI would be:

[ABM ROI = ($100,000 – $10,000) / $10,000 = 9]

This means that for every dollar you spent on your ABM program, you generated $9.

2. Another way to calculate ABM ROI is to measure the increase in average deal size or customer lifetime value (CLTV) resulting from your ABM efforts. This formula can be used:

[ABM ROI = (Increase in Average Deal Size or CLTV – Cost of ABM) / Cost of ABM]

By comparing the increase in revenue per customer to the cost of your ABM program, you can determine the ROI of your strategy.

Tips for Improving ABM ROI

Now that you know how to calculate ABM ROI, here are some tips for improving your ABM ROI:

• Develop a clear account-based marketing strategy that is aligned with your overall business goals. This should include defining your ideal customer profile and identifying the target accounts that are most likely to convert.
• Use personalized marketing tactics to engage your target accounts. This can include personalized email campaigns, targeted social media ads, and personalized content that speaks directly to the needs and pain points of your target accounts.
• Invest in account-based advertising. Account-based advertising allows you to target your ads to specific accounts, making your campaigns more effective and efficient. Use your ideal customer profile and target account list to create highly targeted ads that speak directly to your target accounts.
• Leverage account intelligence to personalize your approach. Use data and insights to understand your target accounts, including their pain points, challenges, and buying behaviors. This information can help you tailor your messaging and approach to better resonate with your target accounts.
• Align your sales and marketing teams. To fully leverage the power of ABM, it is important to ensure alignment between your marketing and sales teams, with clear goals and metrics for both teams. This will help ensure that your ABM efforts are aligned with your overall sales strategy and that everyone is working towards the same goals.
• Invest in ABM technology. There are a variety of ABM technologies available that can help streamline your ABM efforts and make them more effective. These tools can help you automate your outreach, track your campaigns, and provide insights and analytics to help you optimize your approach.

Account-based marketing can be a highly effective strategy for driving revenue and building stronger relationships with your target accounts. However, it is important to measure the success of your ABM efforts and calculate the ROI of your strategy. By tracking key metrics such as account engagement, pipeline, and revenue, and following the tips outlined in this post, you can improve your ABM ROI and drive more revenue for your business.

• Vikas Bhatt is the Co-Founder of ONLY B2B, a premium B2B lead generation company that specializes in helping businesses achieve their growth objectives through targeted marketing & sales campaigns. With 10+ years of experience in the industry, Vikas has a deep understanding of the challenges faced by businesses today and has developed a unique approach to lead generation that has helped clients across a range of industries around the globe. As a thought leader in the B2B marketing community, ONLY B2B specializes in demand generation, content syndication, database services and more.

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By Vikas Bhatt

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• Develop a clear account-based marketing strategy
• Using personalized marketing tactics
• Investing in account-based advertising
• Leveraging account intelligence
• Aligning your sales and marketing teams
• Investing in ABM technology