Customer Annual Value (CAV) —The annual profitability of a customer.

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For example, if a potential client brings you $250,000 in revenue per year, it makes sense to fly to them or take them to a fancy restaurant to seal the deal. ABM is about quickly screening qualified aruba email list accounts to see if there are opportunities. Unlike broad marketing, ABM is not about saving a few pennies at every touchpoint, but investing up front to attract big customers. This calculation works even if you only close a small portion of your accounts, as long as their lifetime value is high enough.

These effective metrics can guide you in how to invest your time in marketing strategies or sales follow-up. For example, if a particular trade show generates promising leads every year, it may deserve more advertising spend and sales attention. The goal is to make future decisions based on which marketing approach will attract the profitable customers your salespeople want.

John is a Partner and Head of Business Development at Trust Insights, a marketing analytics consultancy specializing in data analytics, insights, marketing data science, and machine learning.

At Trust Insights, John and the team are still looking for the best marketing and sales mix. For them, a lot comes naturally — speaking engagements, content sharing, word of mouth. Therefore, this is not simply about making money and making money.