SDR KPIs in the ABM program. Most companies create misalignment with wrong KPIs and doom great programs from the start. Here are the most common mistakes - and the KPIs to use to drive the right behaviours. 𝐂𝐨𝐦𝐦𝐨𝐧 𝐦𝐢𝐬𝐭𝐚𝐤𝐞𝐬 - Activity-based KPIs (dials, emails..). 'nough said. - Meetings booked. It's easy to book meetings. It's hard to book meetings that create high ACV opportunities that convert and stay with you for a long time. - SQLs - or AE-accepted leads. It doesn't account for the win-rate or ACV. This is especially problematic with opportunity-hungry AEs that will accept any potential deal. - Total sales revenue (as in, shared revenue targets for the whole sales team). Good performers get penalised. Another common mistake is not having any leading indicators. I've seen orgs that go all in to close as many deals in Q4, only to go hungry in Q1 next year. Here is how to create KPIs and leading indicators in ABM programs. 𝟏. 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐭𝐡𝐫𝐨𝐮𝐠𝐡𝐩𝐮𝐭 𝐚𝐧𝐝 𝐯𝐞𝐥𝐨𝐜𝐢𝐭𝐲 This is about: - How many ICP accounts (that pass qualification criteria and a define engagement and intent threshold) are you able to source, properly engage and connect to (without skipping the key steps) each week? - How many high-odds accounts (high product-need evidence, vendor awareness, and good relationship) are you able to properly research, reach out to and book discovery calls? - What is the total opportunity value of those accounts per month (velocity)? These are the actions that you can control. What this doesn't measure is, how effective are these activities. 𝟐. 𝐅𝐮𝐭𝐮𝐫𝐞 𝐩𝐢𝐩𝐞𝐥𝐢𝐧𝐞 Today's pipeline is the result of previous quarters' efforts. That's why you always need to work on future pipeline. This means: - Identifying vendor aware, engaged accounts - where the product need unknown, and we have limited relationship with - Working to validate the account challenges and product need, and to connect to and warm-up the buying committee The KPIs here are account-to-convo ratio, and account penetration (how many buying center members did we engage and started a conversation with). 𝟑. 𝐀𝐜𝐭𝐢𝐯𝐞 𝐟𝐨𝐜𝐮𝐬 This is about - Identifying accounts with high odds of becoming an opportunity this quarter. They are vendor aware, and product need evidence is strong, and you have built a relationship with some of the key stakeholders. - The goal here is to generate demos/discovery calls and sales opportunities. The KPIs are account-to-pipeline ratio and sales velocity (total amount of revenue generated from these accounts per quarter and per year). --- The biggest mistakes in SDR land are - Proposing a marriage on the first date (=not matching the action to the level of buying intent) - Ignoring the future pipeline - No collaboration with marketing And the most common root-case is lack of alignment and proper KPIs. Wrong KPIs always lead to the wrong outcomes.
Here is the truth. Not every marketing and sales program or motion is supposed to generate clicks, meetings, or pipeline. Most of your accounts in the ABM program are not currently in market. Stop adding lead gen "dressing" to every marketing and sales program. Wrong KPIs always lead to the wrong Outcomes.
My thoughts The underlying assumptions being that we have SaaS product or for that matter solutions has applications across multiple departments of the Account but is it true for all the SaaS products? Does the martech stack have an utility apart from the Marketing team to warrant an ABM strategy? So does ABM play a role or not; based on its applications is the 1st step to decipher ?
oh, the classic sdr kpi blunders. leading indicators are key for success.
gold, as always
Kirsten Larson great take on SDR KPIs in the context of an ABM program
Spot on with aligning KPIs and behaviours. One thing I'd add: look at customer lifetime value (CLV). It's often overlooked but super relevant in ABM. High initial ACV is great, but we might chase short-term gains over long-term relationships if we're not eyeing CLV. That churn can sting.
Great insights on the pitfalls of traditional SDR KPIs. It's all about aligning with buyer intent, isn't it? I love your emphasis on future pipeline and collaborative marketing. Keep enlightening us! Vladimir Blagojević
Thank you for sharing these insights, Vladimir. It's crucial to align SDR KPIs with the right behaviors and outcomes to drive success in ABM programs. Building future pipeline requires a strategic focus on leading indicators and continuous improvement.
Helping sales teams with customized insights and analysis for those who plan, buy, or sell media.
7moAbsolutely . If you have a finite TAM, High ASP ( $100k +/$250k + ) and are looking to gaining access to global 2000 companies. Meetings booked was a terrible and I mean terrible metric. Demand erosion in action.