Incentive Alignment for ABM Success

Align sales and marketing incentives, and watch your ABM strategy deliver stronger results. Misaligned incentives can cost companies up to 10% of annual revenue, while aligned teams report a 38% increase in closed deals and faster revenue growth. Here's what you need to know:

• Shared Metrics: Use unified KPIs like pipeline velocity, account engagement, and revenue influenced to keep teams focused on the same goals.
• Reward Systems: Combine short-term wins (e.g., bonuses for engaging decision-makers) with long-term milestones (e.g., deal closures) to keep teams motivated.
• CRM and Data Tools: Set up your CRM for ABM tracking, integrate data sources, and monitor intent signals for better targeting.
• Revenue Attribution: Define clear rules for credit division and prioritize multi-touch tracking to measure success accurately.

Key takeaway: Aligning incentives fosters collaboration, shortens sales cycles, and boosts revenue. Start by creating shared goals and using tools like dashboards and tiered rewards to keep both teams accountable.

Aligning Marketing and Sales with Special Guest Shannon Plumb

Building Effective ABM Incentive Programs

Misaligned incentives can derail even the best Account-Based Marketing (ABM) strategies. To avoid this, designing effective programs is crucial. When sales and marketing teams are aligned, they close deals 67% more effectively and improve customer retention by 58% ^[1].

Unified Sales and Marketing Metrics

Bringing sales and marketing together starts with shared metrics. Companies that adopt unified metrics have reported a 171% increase in their average Annual Contract Value (ACV) ^[7].

A well-rounded metrics framework should look like this:

"When your teams work together to provide customers with a robust and personalized experience, customers are more likely to trust and remain loyal to you based on the education and value you provided over their purchase decision. You become their preferred vendor, and that translates to more investments, longer contracts, and predictive value for your revenue." ^[1]

Once shared metrics are in place, structured reward systems can amplify team accountability.

Account-Based Reward Tiers

Reward tiers are a great way to motivate teams, especially when they reflect the strategic value of accounts. A balanced structure should reward both individual contributions and team collaboration.

Take Amilia, for example. Diana Viola, their Performance Marketing Manager, introduced a tiered engagement system that helped the company exceed pipeline targets by 746%. Of this, 30% was directly influenced by targeted campaigns ^[1].

Mixing Quick Wins with Long-Term Goals

Combining short-term and long-term incentives is key to sustainable growth. B2B companies that strike this balance have seen up to 24% revenue growth and 27% profit growth over three years ^[6].

To achieve this, organizations should focus on:

• Shared dashboards that offer real-time visibility
• Regular sync meetings to provide actionable feedback
• Celebrations of joint successes ^[4]

"It's data in, data out. The sales team actually has to be doing the work of personalized messages, actually DMing people, engaging with comments, starting conversations on LinkedIn." ^[3]

Flexibility is another hallmark of successful programs. Teams should be able to adjust their approach based on intent signals while staying aligned on long-term goals ^[5]. This adaptability ensures that ABM efforts remain effective and scalable.

For tailored ABM strategies and insights, check out the consulting services offered by LaviPrime.

Tools for Measuring ABM Performance

To measure Account-Based Marketing (ABM) effectively, you need the right tools and technology. Why? Because companies with ABM programs see a 38% higher sales win rate, 91% larger deal sizes, and 24% faster revenue growth compared to other approaches ^[9].

CRM Setup for ABM Tracking

A well-configured CRM is the backbone of ABM tracking and incentive management. It provides real-time insights into account engagement and progress, ensuring that your team stays aligned and informed.

"It's really important to make sure that data is clean, it's reliable, it's deduped, it's standardized" ^[12].

Beyond setting up the CRM, advanced data analysis takes targeting to the next level. Together, a streamlined CRM and precise analytics help identify and engage high-value accounts.

Data Analysis for Account Targeting

Once your CRM captures the essential metrics, advanced data analysis becomes crucial for identifying high-value accounts and evaluating incentive effectiveness. For instance, Valpak revamped its sales and marketing processes and achieved a 450% ROI on personalized ABM campaigns ^[9].

"The best ABM tools don't just help you execute campaigns – they help you understand and act on buyer intent signals across your target account list" ^[8].

Here are three key components of ABM-focused data analysis:

• Intent Signal Monitoring
  By tracking behavior across multiple channels, you can identify engagement patterns and buying signals. Research shows that ABM strategies deliver a 76% higher ROI compared to traditional marketing approaches ^[10].
• Performance Metrics Dashboard
  Unified dashboards are essential for tracking:
  • Pipeline velocity by account tier
  • Dollar contributions to the pipeline
  • Account engagement scores
  • Team collaboration metrics
• ROI Analysis Framework
  Despite the proven effectiveness of ABM, only 52% of companies measure their ABM ROI ^[2]. To close this gap, track critical metrics like:
  • Cost per engaged account
  • Revenue influence by channel
  • Team performance
  • Customer lifetime value

For even better results, consider a 90-day lookback rule to identify accounts that showed interest but didn’t convert. This approach can help you re-engage potential opportunities and refine your targeting strategy ^[11].

sbb-itb-7f1e12d

Fixing Common Incentive Problems

When rolling out ABM incentive programs, teams often encounter hurdles. Research highlights that 47% of organizations cite separate sales and marketing funnels as the main source of misalignment ^[13].

Clear Rules for Revenue Attribution

Aligning sales and marketing can boost revenue by 32% ^[13], which makes defining clear attribution rules essential for success.

"Attribution is an imperfect science. It's never going to be 100% correct, so as long as it's [broadly] correct it's okay... So it's very hard to be very scientific about it."
– Olga Traskova, VP of Revenue Operations at Birdeye ^[14]

To establish effective attribution rules:

• Adopt multi-touch tracking: Capture and evaluate every interaction throughout the buyer's journey.
• Focus on revenue-oriented metrics: Prioritize metrics like Customer Lifetime Value (CLV), Annual Recurring Revenue (ARR), and Customer Acquisition Cost (CAC) instead of vanity metrics.
• Unify data sources: Integrate marketing and sales data within a centralized CRM to accurately trace lead origins.
• Start small: Test your model with a limited number of accounts before scaling.

While clear attribution is crucial, keeping teams motivated during extended sales cycles is just as important.

Rewards for Extended Sales Cycles

Accurate attribution helps evaluate past efforts, but motivating teams for future performance requires well-thought-out rewards. Long sales cycles, typical in ABM, call for incentive structures that maintain energy and focus. Notably, 87% of B2B marketers say ABM initiatives outperform other marketing strategies ^[13].

Terminus employs milestone-based incentives, which include:

• Bonuses for engaging decision-makers
  Cash rewards are offered for securing meetings with director-level or higher contacts. The bonus amount scales based on account size and revenue potential ^[15].
• Progressive opportunity rewards
  A dual-commission system rewards teams at two key stages:
  • First payout when opportunities reach a defined interest stage.
  • Second payout upon deal closure.

"If you're still measuring ABM success with MQLs, you're missing the point. ABM isn't about leads - it's about revenue."
– Bev Burgess, ABM Practice Leader at Momentum ITSMA ^[13]

To sustain engagement during long cycles:

• Use hybrid compensation structures with solid base pay.
• Incentivize key milestones and meaningful relationship-building efforts.
• Prioritize the quality of interactions rather than the quantity of touches.

Conclusion: Keys to Successful ABM Incentives

To truly make the most of account-based marketing (ABM), aligning sales and marketing incentives is a must. When these teams operate in sync, businesses can see real, measurable growth in both revenue and profits. It's about creating a partnership that turns ABM strategies into tangible results.

"It's Sales AND Marketing. Not Sales VS Marketing. Have the Chief Sales Officer and Chief Marketing Officer say it, repeat it, live it." – Jeanine M. Gaffke, Global C-Suite Executive

Keeping incentive programs fresh by incorporating team feedback and staying responsive to market shifts is essential for long-term success. By focusing on account-based upsell campaigns, unified teams can deliver greater customer lifetime value ^[16]. The combination of shared compensation structures and joint KPIs reinforces the effectiveness of these strategies.

LaviPrime’s ABM consulting services take these principles a step further, offering tailored attribution models, team alignment solutions, and data-driven insights to help businesses achieve measurable outcomes.

FAQs

How can businesses align sales and marketing incentives to boost their ABM strategy?

Aligning sales and marketing incentives is key to making an Account-Based Marketing (ABM) strategy work effectively. The first step? Establish shared goals that both teams can commit to, like hitting revenue targets, increasing deal conversions, or boosting customer engagement. These common objectives help build collaboration and mutual accountability between the two groups.

Keeping everyone on the same page requires consistent communication and feedback loops. Set up regular joint planning sessions where both teams can strategize, review progress, and tweak their tactics when necessary. It’s also worth considering incentive programs that reward both sales and marketing for hitting these shared targets. This approach not only strengthens teamwork but also drives better results.

When sales and marketing work together with aligned incentives, businesses can create a more cohesive ABM strategy that delivers stronger outcomes and sets the stage for lasting success.

What shared metrics help sales and marketing teams work better together in ABM strategies?

To strengthen collaboration between sales and marketing in Account-Based Marketing (ABM), it’s crucial to focus on shared metrics that bring both teams onto the same page. Here are some key ones to consider:

• Cost per Lead (CPL): This measures how efficiently marketing efforts generate new leads, helping both teams understand the value of their campaigns.
• Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs): Clearly defining and tracking these ensures marketing delivers leads that sales can act on, creating a smoother handoff.
• Customer Acquisition Cost (CAC): This tracks the total cost of gaining a new customer, helping both teams stay mindful of budget efficiency.
• Conversion Rates: By analyzing how many leads turn into paying customers, both teams can evaluate the effectiveness of their combined strategies.

Focusing on these shared metrics encourages better communication, aligns objectives, and drives stronger ABM outcomes.

How can businesses track the success of their ABM strategies and ensure accurate revenue attribution?

To measure the success of your Account-Based Marketing (ABM) efforts and accurately tie them to revenue, it's important to focus on specific metrics. Key indicators like account engagement scores, customer lifetime value (CLV), average deal size, and revenue from target accounts can reveal how effectively your campaigns are connecting with high-value accounts and contributing to growth.

Adopting a multi-touch attribution model can shed light on the touchpoints that directly impact revenue. This gives you a clearer understanding of how your ABM strategies are performing. It’s also crucial to keep an eye on metrics like engagement levels, pipeline progression, and conversion rates at every stage of the campaign. Doing so allows you to adjust your approach for better results. By regularly analyzing these data points, sales and marketing teams can stay aligned on their goals, working together to achieve stronger outcomes.