Lower is better
What is Total Accounts?
You'll want to measure the total number of businesses or organizations that have shown interest in or are using your product or service. A business or organization can be categorized more broadly as an account. For B2B companies, total accounts are a more valuable metric than the total number of users. Often, one user has ultimate responsibility for purchasing your product or service on behalf of all other users within their account.
Accounts are also used in account-based marketing (ABM). ABM is a strategy where sales and marketing teams focus on best-fit accounts to convert them into paying customers. Marketers can create hyper-targeted advertisements to users within an account to increase visibility and interest. Data that marketers collect on accounts, such as the number of employees and average employee salary, can be used to infer which type of account is the best fit for a product or service.
Why is Total Accounts important?
Accounts are used in account-based marketing to find new customers by targeting accounts that match your ideal customer. These accounts have a higher chance of converting into sales because they’ve already shown interest in or use the product and can be targeted with more precision than other audiences.
Additionally, once an account has been acquired, it becomes less expensive for you to acquire additional users from within the same organization. This is often referred to as "upselling". For example, if we had one company using our software, now many companies under its umbrella are also using it - these could all become targets for us down the line without spending much money on acquiring them initially.
Start tracking your Total Accounts
Create a KPI for Total Accounts to monitor it over time and an OKR to track your impact against it in Commonality.
Customer Acquisition Cost (CAC)
Ensure you're staying lean and scaling efficiently by measuring how much it costs to acquire a single customer.
Lifetime Value (LTV)
Ensure that you're delivering value that customers are willing to pay for by measuring the average revenue that a customer will generate throughout their lifespan as a customer.
Lifetime Value to Customer Acquisition Cost (LTV/CAC)
Measure this leading indicator of prediciting future growth, customer profitability, and the efficiency of your sales and marketing efforts.
Monthly Recurring Revenue (MRR)
Measure the amount that your customers or users consistently pay every month to use your product or service.
Monitor how much cash your business is generating over a period of time.