![\"Target](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/Demandbase-Target-Account-List-Calculator-01.webp\")
Last time, we deep-dived into the principles of what makes Target Account Selling (TAS) methodology so effective. If this is news to you, check out \u201cTarget Account Selling: The Method to High Ticket Sales (Part 1)\u201d where we went over the following:
\n\n\n\nIn this article, we\u2019ll be covering the more actionable strategies of TAS.
\n\n\n\nIf you don\u2019t already know, TAS tends to be research and resource-heavy even with a cross-functional team. Nobody likes to spell out the actual price for big company customer acquisition costs (CAC) but it\u2019s usually up to 5 to 6 digits depending on the deal size. Anything lower than that and the efficacy of TAS strategies won\u2019t be up to par.
\n\n\n\nNow, considering how expensive it is to acquire huge accounts, many account-based teams are careful to be prepared before they pursue their targets. Even after that, more resources are allocated during the nurturing process and post-sales expansions. But do you know who else dislikes the costs as much as you do? The enterprises you\u2019re selling to.
\n\n\n\nSo here\u2019s what we\u2019re going to learn today\u2026 How to save time, how to save a fortune, and how to increase revenue growth for you and your customers.
\n\n\n\nBefore you can create your target account list (TAL), you should have already identified your total addressable market (TAM). Your TAM is like the fence that keeps you from pursuing every account and keeps the best-fit prospects within your reach. After narrowing down the companies sharing your market, narrow it down even further until you have a definitive list of pre-qualified target accounts. There are three steps to creating your TAL!
\n\n\n\n\n\n\n\nWe\u2019re not heading into Ideal Customer Profile (ICP) territory just yet! You\u2019ll want to do some math to determine how many accounts can be assigned to your account development reps (ADR). You don\u2019t want too many for each rep to handle or what you\u2019ll get is aimless and reactionary selling.
\n\n\n\nIf you\u2019re good at numbers, you\u2019ll be able to do the calculations by hand. However, don\u2019t you just love it when AI and automation can quantify everything for you? Account-based platforms like these make have huge benefits in time-saving, efficiency, and accuracy.
\n\n\n\nDemandbase\u2019s Target Account List Calculator is one such useful tool and I\u2019ll be comparing the results to the actual formulas below it.
\n\n\n\nThe formula:
\n\n\n\nRep quota \u00f7 ASP = Closed-won deals \nClosed-Won Deals \u00f7 Close Rate = SQLs needed\nSQLs \u00f7 Qualification Rate = Total accounts needed\n\n\n\n\n
The numbers:
\n\n\n\nRep quota = $90,000/month\nAverage Selling Price = $45,000\nClose Rate = 50%\nQualification Rate = 5%\n\n\n\n\n
Calculations:
\n\n\n\n$90,000 \u00f7 $45,000 = 2 Closed-Won Deals\n2 Closed-Win Deals \u00f7 50% Close Rate = 4 SQLs needed\n4 SQLs \u00f7 5% = 80 Accounts needed\n\n\n\n
The formula:
\n\n\n\nHours per month \u00f7 Number of hours per account = Total accounts at a time\n\n\n\n
The numbers:
\n\n\n\nHours per month = 160 hrs\nHours per account = 2 hrs\n\n\n\n\n
Calculation:
\n\n\n\n160 hours per month \u00f7 2 hours per account = 80 accounts at a time\n\n\n\n\n
What you see above is the ideal scenario where the rep reaches their quota at 100%. Now imagine only meeting 75% of it. The number is adjusted like so\u2026
\n\n\n\nRep quota adjusted: $90,000/month x 75% = $67,500\n$67,500 \u00f7 $45,000 = 1.5 Closed-Won Deals\n1.5 Closed-Win Deals \u00f7 50% Close Rate = 3 SQLs needed\n3 SQLs \u00f7 5% = 60 Accounts needed\n\n\n\n
![\"Target](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/Demandbase-Target-Account-List-Calculator-02.webp\")
As you can see, the results from this automation are similar to when you\u2019d wanna do it manually. However, why do it by hand with a chance for human error when you can use these kinds of features in a multi-functional CRM?
\n\n\n\nMoving forward, the total number of your highest-value target accounts should be dependent on how many available sales reps you have in your company. Generally, reps have 1,500 selling hours annually. That means the deal size or your annual contract value (ACV) should be proportionate to the number of accounts per rep:
\n\n\n\nIf you already have a specific number of reps in your TAS team but are unsure of how to distribute them by tier, there\u2019s a formula for it! Segmenting accounts by tier will help you scale your Go-to-Market (GTM) strategies, and be effective in allocating your resources.
\n\n\n\n| Tier 1 | Tier 2 | Tier 3 |
| Target accounts orchestrated by your account reps. Tier 1 accounts will be those most aligned with your ICP. | Next, choose 20% of your total target accounts that are closely aligned to your ICP to become Tier 2 accounts. | Finally, the remainder of your ICP accounts will become Tier 3. |
| CALCULATE Number of accounts per rep X total sales reps | CALCULATE Total accounts that meet your ICP X 20% | CALCULATE Total ICP accounts – (Tier 1 + Tier 2 Accounts) |
As an example, you can use the formula above to determine how many accounts you and your team can handle depending on your GTM strategy.
\n\n\n\n| GTM Model | Example | Recommended Calculation |
| Named Accounts | – 10 Tier 1 Accounts per Rep – 6 Sales Reps – 500 total accounts meet your ICP criteria | – Total Target Accounts: 500 – Tier 1: 60 Accounts – Tier 2: 100 Accounts – Tier 3: 240 Accounts |
| Field Sales | – 30 Tier 1 Accounts per Rep – 10 Sales Reps – 2,500 total accounts meet your ICP criteria | – Total Target Accounts: 1,500 – Tier 1: 240 Accounts – Tier 2: 300 Accounts – Tier 3: 960 Accounts |
| 2-Stage | – 100 Tier 1 Accounts per Rep – 8 Sales Reps – 1,500 total accounts meet your ICP criteria | – Total Target Accounts: 3,500 – Tier 1: 1,000 Accounts – Tier 2: 700 Accounts – Tier 3: 184 Accounts |
Be sure to revisit your target account list and tiering model quarterly to adapt to changes in your staffing, incorporate learnings, and revise your target account list. Don’t refresh more than 20% of your target account list each quarter; this allows time for accounts to engage and respond to your targeting.
\n\n\n\nLearn how to design a winning opportunity plan for target accounts.
\n\n\n\nThe ICP is a recurring subject for a good reason.\u00a0 Without a basis to compare which customer should go in the target account list, you may end up passing over a huge opportunity for a small one.\u00a0 Most importantly, you want to make sure you are selecting clients that are the best fit for your product/service.\u00a0
\n\n\n\n\n\n\n\nIf you\u2019re a startup, you will need to create your ICP from scratch.\u00a0 Or you can work with a B2B lead generation company that has a foot in every metaphorical door and have the expertise to guide you through the process.
\n\n\n\n![\"Define](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/define-and-prioritize.webp\")
For established companies, the best practice to follow is to first take a look at your existing customers and determine their ideal characteristics from there. You\u2019ll need to consult with the following departments for insights:
\n\n\n\nThe last step to creating your Target Account List is to separate them into tiers. What that means is to create an account hierarchy based on these three criteria:
\n\n\n\nAccount opportunity plans are customized to your targets but the planning process should still be consistent and repeatable across your target account lists. The ideal account planning framework should be:
\n\n\n\n| Preparation | Prioritization | Planning | Execution | Measurement | |
| Participants | – Direct sales – Sales operations – Channel sales – Channel marketing – Marketing | – Direct sales – Sales operations – Partner management – Marketing | – Direct/indirect sales – Sales operations – Channel marketing – Marketing | – Direct sales – Partner sales – Channel marketing – Partner marketing | – Sales operations – Sales management – Channel sales – Channel marketing |
| Purpose | – Data collection – Supplier-led vs. partner-led – Organizational alignment | – Account selection – Partner criteria and scoring – Reconcile accounts | – Joint account planning – Target opportunities – Solution messaging – Marketing planning | – Buyer engagement – Offerings mix – Pipeline build | – Data management – Analysis – Performance management |
| Outcomes | – Account profile – Partner profile | – Resource Commitment – Planning Process – Target accounts | – Rules of engagement – Persona targeting/account insights – Account plans | – Buyer Alignment – Opportunity qualification – Revenue | – Reporting (dashboards) – Productivity initiatives |
With that said, let\u2019s look at how to create an opportunity plan!
\n\n\n\nAh yes, the activity that frustrates most sales leaders. When a rep takes too much time researching ineffectively, you\u2019re losing out on the time to be selling. Unless you decide to outsource sales intelligence services, it is critical to identify which data is important for better account planning and faster pipeline velocity.
\n\n\n\nThe research checklist:
\n\n\n\nEvaluating opportunities can happen during the early stages of building your Target Account List. It helps when you\u2019re creating your sales opportunity plans too. You will need to consider if there is an opportunity to compete in the market, if you can win it, and if it is worth winning. Successful sales reps have considered these important criteria as the progress of their campaign.
\n\n\n\nAssigning your prospects to your best rep is a given. But it becomes a question of whether you are the best fit. Account-based routing is borrowed from the idea of lead routing. By this point, it becomes a process of assigning the Account Executive (AE) with the highest compatibility to the account. The speed at which the account is accurately routed to the most compatible rep will have a positive impact on sales conversions.
\n\n\n\nCompatibility can depend on 6 things:
\n\n\n\nThere are risks to not leveraging account-based routing. For one, you may miss the opportunity to connect and nurture your prospect. Worst case scenario, the account is passed around because it is misrouted\u2013 and this will give your customers a slow and disconnected user experience.
\n\n\n\nWhen sales, sales development, marketing, customer success, and account management develop account-specific sales plays\u2013 account-based sales orchestration is leveraged to get it right. Orchestration is defined as aligning the team, the process, the data, and the technology to create customer activities that lead them on a journey to your business solution. This journey can be enabled by using the right sales plays.
\n\n\n\n![\"Account-Based](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/Account-Based-Sales-Orchestration.webp\")
Depending on which stage you are with your potential customer, a different sales play could be carried out. These stages are the engagement process, discovery, solution selling, or the close stage. Below you will find the different account targeting strategies to help you get closer to your prospects, turn them into opportunities, and eventually as buyers.
\n\n\n\n![\"The](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/The-Right-Sales-Plays.webp\")
There are four ways to penetrate a target account.
\n\n\n\nInsights are gathered during discovery and are used to personalize content. These plays are effective in engaging stakeholders early in the sales process.
\n\n\n\nThe biggest plays in TAS are the personalized ones. When every interaction is valuable, messaging that is tailored to your target account can have the biggest impact on building their trust. Customized sales plays usually target the decision-makers or champions in the account.
\n\n\n\nNot every close is a win but there is still an opportunity in closed/lost deals. Or if the deal has stalled then it can be revived with the right close play.
\n\n\n\nIt\u2019s a given at this point that your company would leverage several tech stacks to make selling and marketing more efficient and effective. Account-based selling platforms are meant for better alignment between teams in the process of identifying your target accounts as well as keeping track of account activity and progress.
\n\n\n\nTypically, you\u2019re going to want to leverage the following features:
\n\n\n\nMany digital tools can be integrated with most selling platforms. If you haven\u2019t already used any of the above, you should consider how they would improve your TAS efforts and make negotiations easier during the deal stages. The right technologies would enable you to collaborate globally with your clients and become a highly strategic resource for internal coordination.
\n\n\n\nProspecting and outreach are words that are used a lot, and sometimes interchangeably. By simple definition, both words describe establishing contact with a potential buyer to make them sales-ready. So, it\u2019s easy to make the wrong assumption that they are synonymous.
\n\n\n\nTo be clear, sales prospecting is the first stage of the sales process to build up your Target Account List based on your ideal customer profile. Without prospecting, you have target accounts that have no idea who you are.
\n\n\n\nTarget Account Outreach comes right after by engaging the prospected decision-makers to convert them into customers. Without outreach, you have a TAL of prospects who don\u2019t know why they need you.
\n\n\n\nThis is a strategy that increases the chances for successful TAS outreach. The idea is that High-value Offers will give your prospect to realize the high value of your product/service which would drive them to engage with you.
\n\n\n\nHigh-value Offers build up the effectiveness of your TAS outreach as it is designed for human-to-human sales engagement.
\n\n\n\n![\"High-Value](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/High-Value-Offers.webp\")
Knowledge of the message development framework will help you create consistency while minimizing contradictions. It\u2019s especially important as you tailor your messages to each member across the account\u2019s buying committee.
\n\n\n\n| Component | Messaging Framework |
| Subject Line | Emphasize the challenge or the value prop |
| Create Context | Lead with the reason for contacting them to add relevance to your offer |
| Convey Value | Provide persuasive value statements that address the buyer\u2019s challenges. |
| Deliver Offer | Close with CTA that has a high-value offer. |
So if we understand what each component\u2019s objectives are, it is easier to personalize your messages like in the example below.
\n\n\n\n![\"Messaging\"](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/messaging.webp\")
Anyone can look into what their competitors are up to because it\u2019s bad business to hide methods of success because success is the biggest selling point. Competitive intelligence can also be leveraged to figure out what your next plan of action would be to outsell your competitors by identifying areas where you could outperform them.
\n\n\n\nWith the right data, you can turn to copy the tactics that make them successful or turn their biggest weakness into your biggest strength.
\n\n\n\n17 Competitive Intelligence Techniques
\n\n\n\nWhite Space Analysis is a visualization of your data and sales records to discover new opportunities to target. It is a strategy used for Key Account Management (KAM). This type of analysis is used to bridge the gap where the customer\u2019s needs aren\u2019t being satisfied. The bridge is your opportunity to cross-sell and even upsell.
\n\n\n\n![\"White-Space](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/White-Space-Analysis.webp\")
White Space is also a way to drive revenue growth and/or reduce costs aside from cross-selling and upselling. The results of which have a huge impact on you and your customer\u2019s business:
\n\n\n\nWhile White Space Analysis can be done manually, there are available Key Account Management applications such as DemandFarm that can do this automatically.
\n\n\n\nI don\u2019t know about you\u2026 But I, for one, welcome our AI overlords! Not only can they automate and turbocharge a lot of the sales process, but they have also given us the time and ease to close sales.
\n\n\n\nDon\u2019t worry. AIs won\u2019t be replacing you. Successful organizations that are using or planning to use AI are demanding more staff. For one, data hygiene and data enrichment are still mostly done by humans. Secondly, while an AI can analyze and automate, they aren\u2019t capable of building relationships with your potential customers like a human can.
\n\n\n\nHowever, they are invaluable for turning your talented but ordinary reps into the Iron Man of sales\u2014 the Jarvis to your Tony Stark.
\n\n\n\n![\"Superhero](\"https://mercurylabsmarketing.com/wp-content/uploads/2023/01/Superhero-of-Sales.webp\")
Here are the cases in which AIs can help power up your sales process:
\n\n\n\nB2B buying behaviors have shifted radically in recent years leading up to an uncertain economic period. Technology is evolving at a rapid pace but not enough qualified people are using them. Customer expectations are higher because investments have become riskier.
\n\n\n\nYou\u2019ve felt it too as a buyer yourself.
\n\n\n\nArmed with the right knowledge, solid sales & marketing-aligned strategies, leveraging the right tech stack, and outsourcing when needed\u2013 you and your team can clear any roadblocks in the pipeline and close deals.
\n\n\n\nIt\u2019s not going to be easy. But I know you got this!
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