The Undeniable Impact of Account Tiering for a Modern ABM Strategy

Account tiering—categorizing accounts based on their projected value and aligning them with tailored sales engagement strategies—is a fundamental component of successful ABM in today’s B2B landscape.

Effective account tiering strategically allocates resources, focusing disproportionately on your highest-value accounts. It’s not necessarily “unfair” to other target accounts, it’s about maximizing efficiency and impact. ABM is about proper resource allocation in a world where B2B marketers are being asked to accomplish more with less.

Too often, organizations fall into the trap of treating all accounts equally. This outdated approach simply doesn’t work in the age of ABM and more broadly, ABX.

Modern day demand generation has evolved into proper demand creation, where revenue marketing teams are avoiding short-term lead generation — and instead shifting to longer-term account engagement strategies to win target accounts with higher projected values.

Learn how matching entitlements to account tiers will help you concentrate limited resources on the accounts with the highest potential, helping marketers “do more with less” and drive more efficient revenue growth.

What is account tiering?

Account tiering is a strategic framework in Account-Based Marketing (ABM) that segments target accounts based on their potential value and alignment with your organization’s ideal customer profile (ICP). This process enables sales and marketing teams to prioritize efforts and resources toward the right accounts – those with the highest potential for conversion and revenue generation.

Typically, organizations use a three-tiered system to categorize their accounts:

• Tier 1: These represent your high-value accounts. They typically exhibit a strong fit with your ICP, possess significant revenue potential, and offer strategic advantages such as market leadership or brand recognition. Tier 1 accounts warrant the greatest investment of resources and highly personalized engagement strategies, often involving dedicated account teams and bespoke ABM campaigns.
• Tier 2: These accounts demonstrate good potential for growth and alignment with your ICP, although they may not possess the same immediate value as Tier 1 accounts. Tier 2 accounts benefit from a more standardized approach to engagement, with focused B2B marketing campaigns and proactive sales outreach. They may require nurturing and relationship-building to progress toward Tier 1 status.
• Tier 3: This tier comprises a broader range of accounts that meet certain criteria within your ICP but may have lower revenue potential or require further qualification. Engagement with Tier 3 accounts is typically more automated and less resource-intensive, focusing on lead nurturing, brand awareness, and initial qualification efforts.

What’s the difference between account tiering and account segmentation?

Understanding these differences can help you refine your account-based marketing strategy and maximize its effectiveness.

Account segmentation is the broader practice of dividing your target account list into distinct groups based on shared characteristics. These characteristics can include:

• Firmographics: Industry, company size, revenue, location
• Technographics: Technologies used, software platforms, IT infrastructure
• Behavioral data: Website activity, content downloads, event attendance
• Buyer personas: Decision-makers’ roles, responsibilities, priorities

Segmentation helps you understand the diverse needs and priorities within your target market, allowing for more tailored messaging and personalized outreach.

Account tiering, on the other hand, focuses on ranking specific accounts based on their perceived value and potential to your business. This often involves a tiered system (e.g., Tier 1, Tier 2, Tier 3) where:

• Tier 1 accounts represent your highest-value accounts with the greatest potential for revenue generation and strategic alignment.
• Tier 2 accounts have good potential but may require more nurturing or a different approach.
• Tier 3 accounts may have lower potential or require further qualification.

Tiering helps you prioritize your sales and marketing efforts, ensuring you invest your resources wisely and focus on the specific accounts that are most likely to drive significant revenue.

Benefits of account tiering

Key benefits of implementing account tiering include:

• Focused resource allocation: High-value accounts—those with significant revenue potential, strategic importance, or alignment with your ideal customer profile—warrant a more intensive, personalized approach. This could include bespoke content, dedicated account teams, and tailored outreach strategies designed to address their unique needs and pain points. By concentrating resources on these high-potential accounts, you maximize your impact and drive greater ROI.
• Customized strategies: Account tiering allows you to develop customized strategies for different segments. This ensures that your approach aligns with the specific needs and stage of each account in the buyer journey. For example, a top-tier account might receive a white-glove approach with one-on-one meetings, custom proposals, and executive engagement. In contrast, lower-tier accounts might be nurtured through targeted content, automated email campaigns, and less personalized outreach until they demonstrate higher engagement and progress further down the funnel.
• Enhanced sales and marketing alignment: Account tiering fosters greater alignment between marketing and sales teams by providing a shared framework for prioritizing accounts and coordinating efforts. When both departments are aligned on which accounts to target and how to engage them, the result is a more cohesive and effective ABM strategy.

Related → Check out our Data Playbook to see how our data solution provides clean, enriched data to your systems

Understanding the ABM tiered approach

The ABM tiered approach is a strategic framework for optimizing resource allocation and maximizing impact across your target account list. By segmenting accounts based on their perceived value and potential, you can tailor your engagement strategies and drive greater efficiency and return on investment (ROI).

Here’s how the ABM tiered approach typically breaks down:

Strategic ABM (One-to-One)

Strategic ABM represents the highest level of investment and personalization, reserved for your most valuable and strategically important accounts. It requires close collaboration between sales and marketing to create bespoke experiences that resonate with key decision-makers and stakeholders.

The goal is to develop deep relationships, secure major deals, and establish long-term partnerships with key accounts.

Here are examples of initiatives used in this approach:

• Highly customized content (like dedicated landing pages) tailored to the account’s specific business challenges and objectives.
• Personalized communication strategies.
• Special deals and discounts.

ABM Lite (One-to-Few)

ABM Lite offers a more focused approach than broad-based marketing while maintaining a higher degree of personalization than Programmatic ABM. It targets a cluster of accounts with shared characteristics, allowing for more efficient resource allocation and tailored messaging.

The goal is to generate qualified leads, accelerate sales cycles, and position your solutions as the preferred choice within a defined segment.

Here are examples of initiatives used in this approach:

• Targeted content marketing campaigns for specific industries.
• Personalized email sequences and nurture programs.
• Account-based advertising campaigns with tailored messaging.
• Smaller-scale events and webinars designed for a specific audience.

Programmatic ABM (One-to-Many)

Programmatic ABM leverages technology and automation to deliver personalized experiences at scale. It’s often used to generate awareness and engagement with a wider audience, identifying potential customers and nurturing them towards higher levels of engagement.

The goal is to increase brand visibility, generate leads, and drive engagement within a larger pool of target accounts.

Here are examples of initiatives used in this approach:

• Programmatic advertising campaigns with dynamic content and personalized messaging.
• Marketing automation campaigns, such as email workflows with personalized content recommendations.
• Social media engagement and retargeting campaigns.

How to implement account tiering into your strategy

Strategic account tiering is the foundation of successful ABM. Here’s a free ABM strategy planning template + recommended steps for account tiering implementation below:

1. Refine your Ideal Customer Profile (ICP)

Go beyond basic firmographics and dive deeper into the characteristics that truly define your ideal customer. Consider:

• Strategic fit: Identify accounts that align with your long-term growth objectives and offer synergistic partnerships.
• Technographic indicators: Analyze tech stack adoption patterns to identify accounts with a higher propensity to adopt your solutions.
• Behavioral insights: Leverage intent data and predictive analytics to identify accounts actively seeking solutions like yours.
• Competitive landscape: Consider the competitive landscape within each account to tailor your value proposition and differentiation strategy.

2. Develop a robust account scoring model

Implement a comprehensive account scoring model that goes beyond basic firmographic data. Incorporate:

• Engagement scoring: Track and measure interactions across various touchpoints, including website visits, content downloads, and email opens.
• Intent scoring: Leverage intent data to identify accounts actively researching your solutions or industry.
• Fit scoring: Assess the alignment of each account with your refined ICP, considering factors like strategic fit, technographic indicators, and competitive landscape.
• Predictive scoring: Utilize predictive analytics to identify accounts with the highest likelihood of conversion and lifetime value.

3. Establish a dynamic tiering system

Move beyond a static tiering model and embrace a more dynamic approach that allows for account progression and regression based on evolving engagement and intent signals.

• Tier definitions: Clearly define the criteria for each tier, ensuring alignment with your overall ABM objectives and resource allocation strategy. Consider factors such as the number of accounts, deal sizes, potential for upsell and cross-sell, and the number of team members required to support each account.
• Account progression: Establish clear pathways for accounts to move between tiers based on their engagement, intent, and overall potential.
• Ongoing monitoring: Continuously monitor account activity and adjust tier assignments as needed to reflect changes in their behavior and potential.

4. Orchestrate personalized experiences across tiers

Develop highly personalized engagement strategies for each tier, ensuring your approach aligns with the account’s specific needs and stage in the buyer journey.

• Tier 1: Orchestrate highly personalized ABM campaigns with bespoke content, executive engagement, and dedicated account teams.
• Tier 2: Implement targeted ABM programs with personalized content, nurture streams, and relevant offers.
• Tier 3: Leverage programmatic ABM and automation to deliver personalized experiences at scale and nurture potential opportunities.

5. Foster cross-functional alignment and collaboration

Ensure seamless collaboration between sales and marketing teams throughout the ABM process.

• Shared goals and metrics: Align on shared goals, KPIs, and reporting dashboards to track progress and measure the impact of your ABM efforts.
• Account-based playbooks: Develop detailed playbooks that outline the engagement strategies and tactics for each tier.
• Regular communication and feedback: Foster open communication and feedback loops to ensure alignment and continuous improvement.

Related → Check out our Data Playbook to see how our data solution provides clean, enriched data to your systems

Optimize your account tiering strategy with Demandbase

Demandbase can be a powerful ally in your ABM segmentation efforts, providing the data and insights you need to identify, segment, and engage your most valuable accounts.

Here’s how Demandbase can help:

Identify priority accounts

• Account identification: Demandbase’s robust identification capabilities help you accurately identify and map accounts visiting your website, even anonymous visitors. This allows you to uncover hidden opportunities and expand your target account list.
• Account intelligence: Gain deep insights into your target accounts with Demandbase’s comprehensive account profiles, including firmographic, technographic, and intent data. This helps you prioritize accounts based on their potential value and fit with your ICP.
• Intent monitoring: Demandbase tracks online behavior and buying signals across millions of sources, providing real-time insights into account intent. This allows you to identify accounts actively researching your solutions and prioritize those showing the strongest buying signals.

Segment accounts based on value and engagement

• Segmentation tools: Demandbase offers advanced segmentation capabilities, allowing you to group accounts based on various criteria, including firmographics, technographics, intent, and engagement data. This enables you to create highly targeted account segments for personalized outreach.
• Account scoring: Develop a robust account scoring model (with AI-powered lead scoring) to incorporate various data points to prioritize accounts based on their potential value and engagement level. This helps you focus your efforts on the accounts most likely to convert.
• Dynamic tiering: Demandbase allows you to create a dynamic tiering system that adjusts account assignments based on their evolving engagement and intent signals. This ensures your efforts are always focused on the most promising accounts.

Orchestrate personalized engagement across tiers

• Targeted advertising: Demandbase enables you to deliver personalized advertising campaigns to specific account segments across various channels, including display, social media, and web.
• Personalization: Personalize your website experience for different account tiers, delivering tailored content and messaging that resonates with their specific needs and interests.
• Sales intelligence: Empower your sales reps with real-time insights into account activity and engagement, enabling them to prioritize outreach and personalize their interactions.

Measure and optimize your ABM performance

• ABM Analytics: Track the performance of your ABM campaigns with Demandbase’s comprehensive analytics dashboards, measuring key metrics like engagement, pipeline growth, and ROI.
• Reporting and insights: Gain valuable insights into account behavior and campaign performance, allowing you to refine your ABM strategy and optimize your efforts for greater success.

Account Tiering FAQs

How do I determine the number of tiers in my ABM strategy?

The number of tiers depends on the complexity of your business and the diversity of your target accounts. A simple three-tiered system (Tier 1, Tier 2, Tier 3) often suffices, but some organizations may benefit from a more granular approach with 4 or 5 tiers. Consider factors like the size of your target account list, the range of potential deal sizes, and the resources available for personalized engagement.

What are the key criteria for defining each tier?

While specific criteria vary depending on your business and goals, common factors include:

• Potential revenue and deal size: Estimated contract value, lifetime value, and potential for upselling and cross-selling.
• Strategic importance: Alignment with strategic goals, brand recognition, market leadership, and influence within the industry.
• Fit with ICP: How closely the account aligns with your ideal customer profile, including firmographics, technographics, and behavioral characteristics.
• Engagement level: Level of interaction with your website, content, and sales team, including website visits, content downloads, email opens, and social media engagement.

How do I handle accounts that don’t fit neatly into any tier?

It’s common to encounter accounts that fall between tiers or don’t perfectly match your defined criteria. In these cases, consider creating a separate tier or category for these accounts, or use a more flexible scoring system that allows for nuanced evaluation.

How often should I re-evaluate my account tiers?

Regularly re-evaluate your account tiers to ensure they remain relevant and aligned with your evolving business goals. This could be quarterly, bi-annually, or annually, depending on the dynamics of your industry and the frequency of changes in your target accounts. Consider factors like changes in account engagement, intent signals, and company growth trajectories.

What are some common challenges in implementing account tiering, and how can I overcome them?

• Data silos: Ensure data is shared freely between sales and marketing teams to gain a holistic view of each account.
• Lack of clear criteria: Clearly define your tiering criteria and scoring system to avoid ambiguity and ensure consistent account assignments.
• Static tiering: Embrace a dynamic tiering system that allows for account progression and regression based on evolving engagement and intent signals.
• Insufficient personalization: Ensure your engagement strategies are truly personalized for each tier, going beyond generic messaging and content.