What is the Account Funnel metric?
The Account Funnel metric tracks the number of accounts that enter each stage of the Account-Based Marketing funnel within a specified time period. It measures the flow and progression of target accounts through the marketing and sales funnel, from initial awareness to successfully closing the deal.
Why is the Account Funnel important?
The Account Funnel metric is vital for several reasons:
- Dynamic Funnel Analysis: Provides ongoing insights into how accounts are moving through the funnel, helping to identify both bottlenecks and stages of high efficiency.
- Campaign Impact Assessment: Enables teams to measure the effectiveness of specific marketing campaigns and strategies based on the influx of accounts into different funnel stages.
- Resource Optimization: Guides the allocation of marketing and sales resources by highlighting stages that are attracting more accounts, indicating areas where additional focus may yield the highest return.
How is the Account Funnel calculated?
Calculating the Account Funnel involves tracking and aggregating the number of accounts that enter each stage within the sales funnel over a selected time period. This can include stages such as:
- Targeted - accounts with no engaged leads yet
- Engaged - one or more of the account leads has been engaged
- [Lead stages] - account leads are qualified, accepted, worked and converted
- Opportunity - the account has an active new business opportunity
- [Sales funnel stages] - account opportunities move through the sales funnel
- Closed-Won - the account has successfully become a customer
- Renewal - the account has an active renewal opportunity
The Account Funnel is quantified by:
- Tracking the entry date of accounts into each funnel stage.
- Counting the number of accounts that enter each stage within the defined time period.
The calculation can be represented as follows: Account Funnel (stage) = \# (Accounts Entered Stage)
The Account Funnel is often visualized using a funnel chart, which helps in quickly understanding the flow of accounts into each stage of the funnel.