Account tiering is the process of segmenting your Target Account List (TAL) into different tiers based on factors like potential revenue, strategic fit with your Ideal Customer Profile (ICP), and the likelihood of conversion. This prioritization allows you to allocate resources effectively and tailor your ABM strategies to maximize ROI.
The Core Concept:
Not all accounts on your TAL are created equal. Some represent significantly larger revenue opportunities, better align with your ideal customer, or are more likely to close quickly. Account tiering acknowledges this and provides a framework for prioritizing your efforts.
Typical Tier Structure (and how it applies to ABM):
While the specific names and criteria may vary, a common tier structure includes three tiers:
- Tier 1: Strategic Accounts (High-Touch, 1-to-1 ABM):
- Characteristics: Perfect or near-perfect ICP fit, highest potential revenue, strategic importance (e.g., market leader, potential for significant expansion), strong existing relationships (if any).
- ABM Approach: Highly personalized, 1-to-1 ABM. Dedicated resources, executive involvement, custom content, and high-touch engagement are essential.
- Example: A large multinational corporation with a complex IT infrastructure that aligns perfectly with the offerings of a cybersecurity firm.
- Tier 2: Enterprise/Growth Accounts (Mid-Touch, 1-to-Few ABM):
- Characteristics: Strong ICP fit, good revenue potential, strategic value, but perhaps not as significant as Tier 1. May require some adaptation of your core offering.
- ABM Approach: 1-to-few ABM or ABM Lite. These accounts are grouped based on shared characteristics, and marketing and sales efforts are semi-personalized.
- Example: A group of mid-sized financial institutions with similar regulatory compliance needs that align with the offerings of a risk management software company.
- Tier 3: Broad Market/Scale Accounts (Low-Touch/Programmatic, 1-to-Many ABM):
- Characteristics: Fit most but not all ICP criteria. Lower individual deal value, but the sheer volume can still represent a significant opportunity. Often used for lead generation and brand awareness.
- ABM Approach: 1-to-many or Programmatic ABM. Automated, scalable marketing tactics are used to engage these accounts. Personalization is limited but still present through segmentation and dynamic content.
- Example: A large number of small businesses in a specific industry could benefit from a basic version of a marketing automation tool.
Benefits of Account Tiering:
- Resource Optimization: Focuses resources on the highest-potential accounts, maximizing ROI.
- Personalized Strategies: Enables tailored marketing and sales approaches for each tier, increasing engagement and conversion rates.
- Improved Sales Efficiency: Sales teams can prioritize their efforts and focus on the most promising leads.
- Better Measurement and Analysis: This allows you to track the performance of your ABM efforts across different tiers and identify areas for improvement.
- Clearer Communication and Alignment: Provides a shared understanding within the sales and marketing teams about which accounts to prioritize and how to engage them.
Example of Implementing Account Tiering:
A company selling project management software uses the following criteria for tiering:
- Tier 1: Companies with over 1,000 employees, project-based business models, and a need for advanced project management features.
- Tier 2: Companies with 100-1,000 employees, growing rapidly, and looking to scale their project management processes.
- Tier 3: Companies with fewer than 100 employees, simpler project management needs, and a limited budget.
They then tailor their ABM strategies accordingly:
- Tier 1: Dedicated account teams, custom demos, and executive briefings.
- Tier 2: Segmented email campaigns, webinars, targeted online advertising.
- Tier 3: Automated email sequences, online resources, and self-service onboarding.
By implementing account tiering, the company can effectively target its resources and maximize its chances of success with each type of account.