Account Tiering: How to Tier Target Accounts

When it comes to developing an effective b2b sales and marketing strategy, prioritization is key. One of the best ways to prioritize your efforts is by tiering your target accounts. But how do you tier target accounts, and why is it so important?

In this article, we’ll cover everything you need to know about tiering target accounts, including what it is, why it matters, and how to implement a tiering strategy that drives results.

What Is Account Tiering?

Account tiering is used by marketing and sales teams during the lead-scoring process. It involves categorizing your target accounts into different levels or “tiers” based on their potential value to your business. Each tier represents a different priority level, helping your sales and marketing teams allocate resources more effectively.

Typically, accounts are tiered into three levels:

1. Tier 1 (High Priority): These are high-value accounts with the potential for significant revenue or strategic partnerships. These accounts often align closely with your Ideal Customer Profile (ICP) and represent opportunities for long-term growth. They receive the most personalized and resource-intensive attention, such as one-on-one meetings, custom proposals, and account-based marketing campaigns.
2. Tier 2 (Mid-Priority): Accounts in this tier have moderate potential and are still valuable but may not warrant the same level of resources as Tier 1 accounts. These accounts are often targeted with semi-personalized campaigns and benefit from scalable outreach efforts, like industry-specific webinars or tailored email marketing.
3. Tier 3 (Low Priority): These are smaller accounts or those with lower potential value. While they might not generate as much immediate revenue, they can still be worth nurturing for future opportunities. Engagement with Tier 3 accounts is usually driven by automated campaigns, content marketing, and self-service resources.

Why Is Tiering Target Accounts Important?

Resource Optimization

Not all accounts are created equal. Tiering ensures that your team’s time, energy, and budget are directed toward the accounts most likely to drive significant returns. This prevents wasted resources and allows for a more strategic allocation of efforts.

Improved Personalization

High-value accounts in Tier 1 can be targeted with highly tailored campaigns. Personalization increases the likelihood of conversion by addressing the specific needs, challenges, and goals of the account. This builds stronger relationships and positions your business as a trusted partner.

Clear Prioritization

A clear tiering system aligns sales and marketing teams, ensuring everyone is on the same page about where to focus efforts. This reduces miscommunication and helps teams work collaboratively toward shared goals.

Scalability

Tiering allows you to scale your outreach and engagement strategies by assigning appropriate resources to different account groups. High-value accounts get the attention they deserve, while lower-priority accounts can still be engaged efficiently through automated methods.

Steps to Tier Target Accounts

Step 1: Define Your Ideal Customer Profile (ICP)

Before you can tier your accounts, you need to understand what makes an account valuable. Define your ICP by analyzing factors such as:

• Industry and Vertical: Which industries align with your product or service? Focus on industries where your solution has the highest impact or where you’ve seen success in the past.
• Company Size: Consider metrics like annual revenue, number of employees, or market share. Larger companies may have more complex needs but offer greater revenue potential.
• Geography: Are there specific regions where your business performs best? Geographical considerations can help refine your focus.
• Pain Points: Identify common challenges that your solution addresses for customers. The closer an account aligns with these challenges, the more likely they are to see value in your offering.

For additional guidance on building an ideal target account list, check out How to Build a Target Account List.

Step 2: Gather Data on Potential Accounts

Collect data on your target accounts from reliable sources to evaluate their potential. These sources can include:

• CRM Tools: Use platforms like Salesforce or HubSpot to track account details and historical interactions.
• Market Intelligence Platforms: Tools like ZoomInfo, LinkedIn Sales Navigator, and Clearbit provide detailed insights into account demographics and behavior.
• Internal Data: Analyze data from past deals to identify patterns in successful accounts. Look for trends in deal size, sales cycle length, and engagement metrics.

Ensuring accurate and standardized data is crucial. Learn more about this process in B2B Data Standardization.

Step 3: Score Accounts Based on Key Criteria

Create a scoring system to rank accounts based on their potential value. Common criteria include:

• Revenue Potential: Estimate the potential deal size or lifetime value of the account.
• Alignment with ICP: Assess how closely the account matches your ideal customer profile.
• Buying Intent Signals: Monitor engagement behaviors such as website visits, content downloads, or event attendance.
• Existing Relationships: Consider whether you already have connections within the account that could accelerate the sales process.

Assign numerical values to these factors and calculate an overall score for each account. This scoring system will help you objectively rank accounts for layering.

To understand how lead researchers can assist in this scoring process, explore What Is a Lead Researcher?.

Step 4: Categorize Accounts Into Tiers

Using your scoring system, categorize accounts into Tier 1, Tier 2, and Tier 3. For example:

• Tier 1: Top 10% of accounts with the highest scores. These accounts have the most potential for significant revenue and strategic impact.
• Tier 2: Middle 30-40% of accounts. These accounts are valuable but may not justify the same level of resources as Tier 1.
• Tier 3: Remaining 50-60% of accounts. These accounts have lower potential but can still contribute to overall growth.

Step 5: Develop Tailored Strategies for Each Tier

• Tier 1 Accounts:
  • Assign dedicated account managers to provide a personalized experience.
  • Develop highly customized campaigns, including one-on-one meetings, bespoke proposals, and ABM strategies.
  • Schedule regular touchpoints to maintain engagement and build relationships.
• Tier 2 Accounts:
  • Use semi-personalized outreach, such as industry-specific messaging and curated resources.
  • Leverage scalable tactics like webinars, email sequences, and targeted advertising.
  • Balance personalization with efficiency to optimize resource allocation.
• Tier 3 Accounts:
  • Focus on broad-based marketing efforts, such as social media campaigns and content marketing.
  • Use automation for outreach and nurture campaigns, including drip email sequences.
  • Provide self-service options like knowledge bases and downloadable guides.

Step 6: Continuously Monitor and Adjust

Account ranking isn’t a one-and-done process. Regularly review account performance and reassign tiers as necessary. Monitor key metrics like:

• Engagement Rates: Track how frequently accounts interact with your campaigns and content.
• Pipeline Velocity: Measure the speed at which accounts move through the sales funnel.
• Conversion Rates: Analyze the percentage of accounts that convert into customers.
• Customer Lifetime Value (CLV): Evaluate the long-term value of each account to ensure resources are being invested wisely.

Best Practices for Account Tiering

Involve Cross-Functional Teams

Collaborate with sales, marketing, and customer success teams to ensure alignment on tiering criteria and strategies. This collective approach ensures that every department’s insights are incorporated.

Leverage Technology

Use CRM and analytics tools to automate data collection, scoring, and reporting. Advanced platforms can help you identify trends, track engagement, and streamline the tiering process.

Start Small

If you’re new to account tiering, start with a small list of accounts and refine your process before scaling. This allows you to test and adjust your criteria without overwhelming your team.

Focus on Quality Over Quantity

It’s better to have fewer, well-targeted Tier 1 accounts than to stretch resources across too many. Prioritize accounts that align closely with your business goals.

Maintain Flexibility

Be prepared to adjust your tiering system as market conditions, company goals, or account data change. Flexibility ensures your strategy remains effective over time.

FAQ

What is the purpose of account tiering?

Account tiering helps businesses prioritize their efforts by categorizing accounts based on potential value, ensuring efficient resource allocation and better ROI.

How often should I update my account tiers?

It’s recommended to review and update your account tiers quarterly or as new data becomes available to ensure your strategy stays aligned with business goals.

Can small businesses benefit from account tiering?

Yes, account tiering is scalable and can help businesses of any size prioritize their efforts and optimize limited resources.

What tools can I use for account tiering?

CRM tools like Salesforce and HubSpot, market intelligence platforms like ZoomInfo, and analytics software can streamline data collection and scoring.

What happens if an account’s tier changes?

If an account’s tier changes, adjust your engagement strategy accordingly to ensure the appropriate level of resources and attention is allocated.

Final Thoughts

Tiering target accounts is a strategic way to prioritize your efforts and maximize ROI. By understanding your ideal customer profile, scoring accounts effectively, and tailoring your strategies for each tier, you can drive better results and build stronger relationships with your most valuable customers.

Ready to get started? Implement these steps today and watch your sales and marketing efforts reach new heights!