So you’ve got a huge list of target accounts that match your ideal customer profile. Great! You’re already ahead of the game and setup well to begin using account-based marketing strategies.

Don’t have your ideal customer profile and target account list built yet? No worries, here’s a guide to get that started right away.

It’s intimidating to look at a huge list of thousands of accounts and know exactly what to do next. Which accounts should you start with? How should these accounts be split up among the sales team? Are there any accounts that should be approached with extra care?

All great questions, and this article is going to cover why creating tiers for your target accounts will make your ABM go-to-market motion that much smoother.

The Tiered Approach to Account Prioritization

The tiered system divides potential accounts into different levels based on their likelihood to convert and the resources required to close the deal. 

At Mutiny, we categorize our accounts into four tiers:

• Priority 1: These accounts are the highest priority for the sales organization. Typically, these P1 accounts will be Enterprise in size, have an ideal customer profile (ICP) that is a perfect match, and already have some intent signal that makes them worth pursuing right now. We’ll share more details about our criteria in the next section.

• Priority 2: P2 accounts are also near-perfect matches for our ICP and intent signals, but they might be smaller in size to the P1 accounts, or not as far along in the buying process.

• Priority 3: P3 accounts match the ICP enough that they’d make good customers, but will need some work to close the deal. These accounts are typically smaller or still in the early stages of the buying process.

• Reserve: These accounts have been identified as near-fit, but won’t be actively pursued for the time being. Over time, it’s common for Reserve accounts to move into a higher tier, or be removed from the target account list entirely if needed.

How To Assign Tiers To Target Accounts

To define P1 accounts, we need to look at the specific criteria and characteristics that differentiate them from other tiers like P2 and P3. 

Criteria For P1 Accounts

P1 accounts are the top-tier priority target accounts that have been hand-selected by Account Executives (AEs) from the P2 pool. Here are the defining characteristics of P1 accounts:

1. ICP Fit: P1 accounts are identified as having a high confidence of being an ICP fit. This means they align with the company's target criteria and tech stack requirements.

2. Sales Discovery Notes Confirmation: A thorough analysis, including sales discovery notes, confirms that P1 accounts are aligned with the company's objectives and priorities.

3. Limited Number: P1 accounts are limited to around 10 accounts. The focus is on these accounts to make sure dedicated attention and resources for successful outreach and closing.

4. Handpicked by AEs: Accounts in the P1 tier are selected by AEs for personalized outbound efforts. This allows the sales reps to directly engage with these accounts and build strong relationships for successful deals.

5. AE Outbounding: P1 accounts are managed by AEs for direct outreach and engagement. It involves a one-to-one approach to target and close deals effectively.

6. High Confidence Fit: P1 accounts are considered to have the highest confidence level as a good fit for the company's offerings.

Based on these characteristics, P1 accounts signify the top priority target accounts that meet specific criteria, are handpicked for personalized attention, and have the highest confidence in successful engagement and conversion.

Criteria For P2 Accounts

P2 accounts make up the bulk of the accounts that would be assigned to an AE at any given time. But because the AE is responsible for 1:1 high-touch sales with their P1 accounts, Business Development Representatives (BDR) are assigned to prospect these P2 accounts. 

P2s follow the criteria mentioned above, but were not hand-picked by the AE that they’d be pursuing that account actively in that quarter.

BDRs will actively prospect these P2 accounts using email and 1:1 personalized microsites that help the contact understand more about what Mutiny can do to solve their problem and deliver the most relevant content for them to do their own research.

Explore an interactive example of how these 1:1 personalized microsites help accelerate the deal and turn P2s into predictable pipeline.

Criteria For P3 Accounts

P3 accounts will score lower on the above criteria, and won’t be actively prospected by the BDR or the AE. 

When a P3 account lands on our website, they will still see a personalized experience relevant to their industry and company.

When 6sense implemented industry-relevant personalization, they saw a 5x increase in meetings booked.

What About Reserve Accounts?

Receive accounts will still see general personalization when they land on the website, but will not receive any active prospecting at this time. But as the sales organization grows,‌ some reserve accounts will be moved into a higher tier to make sure that there’s enough deals to hit ‌revenue goals and quotas.

How To Apply This:

• Assess Your Accounts: Evaluate potential accounts and categorize them based on fit with your Ideal Customer Profile (ICP) and the resources needed to win them.

• Prioritize Your Efforts: Focus your sales team's efforts on the highest-priority accounts to maximize efficiency and effectiveness.

Create a Reserve List: Keep a list of potential accounts for future targeting, making sure a pipeline for new hires or when other tiers are exhausted.

Setting Account Limits to Drive Focus

We follow a simple personalization strategy to make sure that every account is shown the right level of personalization, and that we’re not stretching our resources too thin.

The strategy includes setting a cap on the number of accounts in each tier, particularly for P1 accounts, to make sure that sales reps can focus their efforts and resources effectively.

How To Apply This:

• Limit Top-Tier Accounts: Set a cap on the number of P1 accounts per sales rep to encourage focused and intensive effort on the most promising leads.

• Scale Efforts Appropriately: Allow for a larger number of P2 and P3 accounts, which require less individual attention but still represent valuable opportunities.

• Track and Adjust: Keep an eye on performance and be ready to adjust account limits and strategies as needed.

Refreshing the Account List

We run a six-month refresh cycle, with the possibility of more frequent updates if significant changes occur in the ICP or market conditions.

This is because by the end of the 6 months, the AE will have closed all their P1 accounts and the BDR has nurtured enough P2 accounts to fill their calendar with new deals. 

A rolling cadence is important because it keeps the team focused on short-term wins, while also having a long enough time horizon that the finance and business operations team can set realistic growth expectations for company leadership. 

How To Apply This:

• Establish a Refresh Cadence: Decide on a regular interval for reviewing and updating your account lists to keep them relevant.

• Stay Agile: Be prepared to refresh your lists more often if there are significant changes in your ICP or market.

• Use Reserve Accounts Strategically: If quotas are not being met, consider tapping into reserve accounts sooner rather than later.

Supporting Sales Team Adaptation

When shifting ICPs or market focus, it's essential to support your sales team through the transition. This includes providing a fair distribution of accounts to new hires and‌ lowering targets to accommodate the learning curve associated with new markets.

How To Apply This:

• Provide Fair Distribution: Give new hires a fair chance at success by providing them with a good mix of accounts.

• Adjust Targets for New Markets: Lower sales targets temporarily to account for the learning curve in new markets or with a new ICP.

A Tiered Approach Makes Sales and Marketing Happy

A tiered account prioritization strategy can help sales teams navigate the complexities of the market and focus their efforts where they are most likely to succeed. By applying these principles, ABM organizations can create a structured, efficient approach to hitting their targets and driving growth.

We've put together the best account-based marketing plays being used by B2B companies to grow. Learn from the best and apply them to your own company to hit your pipeline goals.