If you haven’t checked out our previous blog on Fundamental Sales Metrics, make sure you read that first.
How Do You Track ABS Metrics?
The sales funnel in ABS is a crucial part of tracking the health of your ABS strategy and the quality of your SDR’s and AE’s work. A well-implemented ABS strategy produces a thriving sales funnel due to the high-quality work of SDRs and AEs.
An ABS sales funnel additionally shows how much revenue COULD come from Target Accounts. The sales funnel should tell you how much revenue a sales team should expect from Target Accounts, and if there is any untapped revenue that has yet to be uncovered in Engaged Accounts.
The sales funnel itself has five distinct steps and corresponding metrics associated with each of these steps. These are the steps of the ABS funnel:
- Target Accounts
- Engaged Accounts
- SQL Accounts
- Opportunity Accounts
- Closed-Won Accounts
The ABS Funnel Metrics Associated with these steps are:
- Engaged Accounts: These accounts have been reached out to by reps and have replied or expressed interest in some way, whether through a phone call connect or from an email response. At this step in the sales funnel, sales teams want to know how many accounts reps have had engaged conversations with.
To determine this engagement, sales teams should track their Account Engagement Rate and Account Contacted Rate. Account Engagement Rate is the ratio of Target Accounts to Engaged Accounts. This is a proxy for how focused reps have been on having the right conversations, essentially talking to the right contact in a well-fitting Target Account. Account Contacted Rate tells sales teams how many of their targeted accounts they have actually contacted.
- SQL/Opportunity: Accounts in these steps of the sales funnel have been researched and vetted by sales reps, have scheduled demos and meetings, and have been passed off to AEs. The metrics used in these steps aim to show how many of a sales team’s Engaged Accounts have now become Opportunity Accounts. They’re also a good measure of AE’s effort as well as the quality of messaging that SDRs are using. The specific metrics are Opportunity Rate and Opportunity Pipeline.
Opportunity Rate is the percentage of Engaged Accounts that were generated by each sales rep. On the other hand, Opportunity Pipeline is the measure of the total pipeline that each AE generated in their Target Opportunity Accounts. These two metrics demonstrate how smoothly targeted accounts are moving through the sales funnel, from sales rep to AE.
- Close-Won: In this step of the sales funnel, accounts have been signed and are now customers. Yay! This step is the final phase of the sales funnel, so the metrics here help determine the overall health of the ABS sales funnel, from start to finish. The two metrics used in this step are Account Win Rate and Revenue.
Account Win Rate tracks how many of the accounts in the Opportunity Accounts step have become customers. The Revenue metric shows the total amount of revenue that has been generated from Closed-Won Accounts.
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Using ABS Metrics as a Saas Company
These ABS Funnel Metrics can be a bit confusing and hard to wrap your head around when they’re laid out in an entirely theoretical manner, so let’s look at a realistic example to help grasp a little more understanding.
To take a look at how Gary tracks his ABS Funnel Metrics, let’s go back and visit our old friend Olivia, the SDR.
Here’s how Gary tracks ABS Funnel Metrics in regards to Olivia’s activities last month:
Gary assigned Olivia 10 accounts to prospect last month.
Out of these 10, she touched nine.
She managed to engage with six of these touched accounts and five of those Engaged Accounts booked meetings – go Olivia!
Four of the accounts that had meetings converted into SQLs and two of those SQLs became won accounts.
Olivia passed these four SQLs on to the AE named Trevor.
Trevor estimated the pipeline amount for these four accounts. The amounts of these were $100,000 (won), $50,000 (won), $70,000 (lost), and $30,000 (lost).
The ABS Funnel Metrics for these four accounts that Olivia booked look like this:
Thanks for reading! Stay tuned for our next blog, where we dive into Account Penetration Metrics.
In the meantime, got any pressing questions, comments, concerns? Drop us an email at firstname.lastname@example.org.