One of the questions we hear all the time is: how big should my Target Account List be? Below are 5 questions to ask yourself as you are building your list.
- Where are you in your ABM Journey? If you’re just starting out, start small. No need to boil the ocean right out of the gates and potentially set yourself up for failure. And if you’re running a pilot program, make sure you don’t go too small at the outset, limiting your ability to show results. Instead of thinking about a handful of accounts, you’re going to want to pilot with dozens.
- What is your Total Addressable Market (TAM)? How big is the universe you can sell to? Within that universe, which accounts are actually ready to buy NOW? For example, if your TAM is 20,000 accounts, then your target market has to be smaller than that number since it’s just a subset of your TAM. Then consider that your target account list will be a subset of your target market; if your target market is 10,000 accounts, then your target account list has to be smaller than that. Follow this pattern to guide you toward a healthy number of accounts.
- What is the length of your sales cycle? The longer your sales cycle, the fewer accounts you’ll need per rep. This is because each rep has to follow their respective target accounts through a lengthy buyer’s journey that requires the attention and time of the sales rep.
- How many sales reps do you have? The size of your sales team should also be taken into account. If you only have 20 sales reps, and the target account list is made up of 20,000 accounts, that will be entirely too many accounts for each of them to handle.
- What are your close rates? The higher your close rates are, the fewer accounts you’ll need per sales rep. If your close rates are low, then it means you’ll need more accounts to get to the goal revenue number.All of these factors play together to drive your list size. Most people will end up with a different size list, which is totally ok! Your list should always reflect the nuances of your business.Time to put it into action! To make it easy for you, we’ve created a modeler that can help you bring all of those factors together to help figure out what size YOUR target account list should be! This modeler not only allows you to come to an overall number of target accounts, but you can help zero in on what sales reps specific numbers are as well. Have fun!