How to Determine the ROI of Account-Based Marketing
Account-based marketing is a worthwhile investment in any company that wants to grow its sales and close deals more effectively. More than 80 percent of marketers claim that their ABM initiatives are currently outperforming other marketing endeavors when it comes to ROI.
The question many businesses encounter is how to determine their return on investment when they hire an account-based marketing agency to help them employ this approach. A company must be specific about its outcomes to ensure they are investing marketing dollars wisely.
This quick guide will give all businesses a crash course in determining the ROI of their account-based marketing campaigns.
Start by Setting Goals
How do businesses determine whether their ABM initiatives are successful? It starts by setting a goal or an objective that is easy to measure. This could be as simple as how many connections a sales representative made with a lead or the number of deals closed.
Determining ROI is easy when you have a clear starting point. Compare these same metrics to the marketing initiatives used before account-based marketing. Seeing an uptick in any of the data used to measure success indicates that a company is on the right path with ABM.
Following the rules for establishing an ABM strategy is crucial to this endeavor. Part of this comes down to defining the right strategy that will have the biggest impact. Return on investment is easier to measure with these metrics solidly in place.
Set a Budget
Understanding the goal of your marketing campaign is significant, but setting a budget is equally important. Businesses should know exactly how much they can realistically afford to invest in this new strategy.
While it is true that sometimes money must be spent to yield a greater return, it is important to keep track of spending.
A few things to keep in mind for the budget include:
- Cost of content creation for blogs or email newsletters
- Cost of paid advertising
- Pay-per-click advertisements
- Recurring costs for platforms used
- All other costs for publication of content
Make sure that everyone understands the total cost associated with a given marketing initiative, no matter what it might be. This helps to better understand the revenue that is brought into the business in relation to the cost.
Understanding how account-based marketing can impact the bottom line of a business requires careful tracking. Marketing departments should be paying attention to the metrics they set up in the first step to measuring ROI alongside the cost of the campaign.
Tracking key performance indicators (KPIs) such as engagement or leads closed is essential to making sure that marketing is on the right track. Set up a strategy to record and monitor these metrics as new marketing plans are developed.
As you’re tracking these statistics, it might become quite clear whether adjustments to the strategy are necessary. Patterns can often be identified, which can help marketers to see where their ABM campaign may be falling short of the goal.
At this point, it might be necessary to make an adjustment if the return on investment simply isn’t where it should be.
Allow an Account-Based Marketing Agency to Help
Many businesses wish they could improve their bottom line, but they lack the knowledge of how to implement a solid ABM strategy. An account-based marketing agency like Insights ABM can help to set your ABM initiatives up and continuously monitor ROI so that marketing dollars can be used effectively. Give us a call today!