The Art of Defining Target Accounts and Crafting Your Ideal Customer Profiles

Identifying target accounts is a crucial step in developing an effective Account-Based Sales and Marketing (ABx) program. The goal of identifying target accounts is to focus your sales and marketing efforts on a small number of high-value accounts that are most likely to generate revenue growth over the long term. By combining data analysis, market research, and collaboration with sales and marketing teams, you can develop a targeted list of potential target accounts for your ABx program.

Who to Target?

ABx programs are particularly effective for companies that have a relatively small number of high-value accounts, typically in the B2B space. This may include:

Enterprise-level Companies: ABx is particularly effective for companies that target large or enterprise-level businesses, where each account represents a significant revenue opportunity.

Enterprise-level Companies: ABx is particularly effective for companies that target large or enterprise-level businesses, where each account represents a significant revenue opportunity.

Long and Complex Sales Cycles: ABx proves to be ideal for companies that have complex and lengthy sales cycles (>180 days), where building strong relationships with key decision-makers are critical to closing the deal.

Long and Complex Sales Cycles: ABx proves to be ideal for companies that have complex and lengthy sales cycles (>180 days), where building strong relationships with key decision-makers are critical to closing the deal.

Multiple Buyers and Decision Makers: ABx is a must-have for deals that required multiple (> 3) decision-makers and influencers

Multiple Buyers and Decision Makers: ABx is a must-have for deals that required multiple (> 3) decision-makers and influencers

High-value Offerings: ABx is highly efficient when marketing high-value solutions, which typically entail substantial expenses for customer acquisition such as software, consulting, or professional services, which typically entail substantial expenses for customer acquisition.

High-value Offerings: ABx is highly efficient when marketing high-value solutions, which typically entail substantial expenses for customer acquisition such as software, consulting, or professional services, which typically entail substantial expenses for customer acquisition.

Niche Markets: ABx is particularly effective in niche markets, where a small number of high-value accounts can have a significant impact on the company’s bottom line.

Niche Markets: ABx is particularly effective in niche markets, where a small number of high-value accounts can have a significant impact on the company’s bottom line.

ABx is most effective when there are a small number of high-value accounts, where building strong relationships with key decision-makers is critical to success. Additionally, it is important to have the necessary resources and infrastructure in place to execute a customized and interactive strategy for engaging with target accounts.

Ideal Customer Profile (ICP)

An Ideal Customer Profile (ICP) is not a wish list of big-name logos. Instead, it focuses on identifying prospects that have a genuine need for your company’s product or services. ABx is about targeting companies that are a good fit for your offerings.

Following are the key considerations in defining the ICP:

Firmographics can include the following segments (which best meet your sales criteria)

Revenue Size e.g.,> $20B, $1B – $20B, $500M – $1B, $100M – $500M, < $100M

Number of Employees e.g.,> 10,001, 5001 – 10,000, 1,000 – 5000

An Ideal Customer Profile (ICP) is not a wish list of big-name logos. Instead, it focuses on identifying prospects that have a genuine need for your company’s product or services. ABx is about targeting companies that are a good fit for your offerings.

Following are the key considerations in defining the ICP:

Firmographics can include the following segments (which best meet your sales criteria)

Revenue Size e.g.,> $20B, $1B – $20B, $500M – $1B, $100M – $500M, < $100M

Number of Employees e.g.,> 10,001, 5001 – 10,000, 1,000 – 5000

Industry Vertical e.g., Computer Software, Manufacturing, Semiconductor, Aerospace and Defense

Buyer Roles e.g., Vice President Marketing, Director Marketing, Director Account Based Marketing etc.

Location e.g., San Francisco, California, USA etc.

Tiered Account Segmentation

In B2B sales, it’s important to prioritize specific accounts that have the potential to generate significantly more revenue than the average customer. This requires investing in researching the account’s unique needs and goals to make a highly personalized offer and build stronger relationships. Account segmentation is key to success in ABx as it allows for tailoring the approach to different tiers of accounts and focusing efforts on the accounts that offer the greatest revenue potential. By utilizing an account segmentation approach, resources are invested where they will have the greatest impact, maximizing revenue potential and strengthening relationships with high-value customers.

In B2B sales, it’s important to prioritize specific accounts that have the potential to generate significantly more revenue than the average customer. This requires investing in researching the account’s unique needs and goals to make a highly personalized offer and build stronger relationships. Account segmentation is key to success in ABx as it allows for tailoring the approach to different tiers of accounts and focusing efforts on the accounts that offer the greatest revenue potential. By utilizing an account segmentation approach, resources are invested where they will have the greatest impact, maximizing revenue potential and strengthening relationships with high-value customers.

Tier 1 includes clients with the highest average contract value (ACV) or lifetime value (LTV) generating 10 -15% of revenue. For Tier 1 accounts, highly personalized 1:1 campaigns are necessary to make a meaningful impact.

Tier 2 includes clients with medium ACV or LTV (generating 4-10% of revenue). For Tier 2, companies should develop vertical and job role personalized campaigns that speak to the specific needs and goals of this group. Defining firmographics and revenue potential is also essential for effective Tier 2 account segmentation.

Tier 3 encompasses clients with low to medium revenue potential. While there may still be valuable sales opportunities with Tier 3 accounts in terms of securing brands and establishing marketing share, they should be approached through automated nurture and demand capturing. For instance, industry thought leadership digests can be an effective way to engage with Tier 3 accounts without resorting to high-touch manual campaigns.

Tier 4 includes prospects that have the lowest revenue potential. While there may still be sales opportunities with Tier 4 accounts, they should be approached through demand generation and demand capturing activities rather than manual campaigns with sales.

Account Qualification and Disqualification Criteria

Fit: Does the company have a need for your company’s products or services?

Revenue Potential: Does the company have significant revenue ACV/LTV potential?

Strategic Value: Is the company strategically important, for example, as a reference customer or a partner?

Decision-making Power: Do the people you are engaging with have decision­ making power and the ability to make purchasing decisions?

Engagement: Are the key stakeholders willing to engage with you and show interest in your offerings?

ABx Checklist

About The Author

Usman Sheikh

Founder and CEO

xiQ, Inc.

Usman Sheikh is the visionary founder and CEO of xiQ, an award-winning B2B sales and marketing platform. Through the fusion of generative AI, behavioral science, and ChatGPT, xiQ is revolutionizing the industry with its personality-driven sales approach.
As a futurist and design thinker, Usman aims to humanize B2B sales and marketing by leveraging generative AI and psychology. With xiQ, sellers can understand the mindset of prospective buyers and hyper-personalize engagement at every stage of the sales cycle.
Before xiQ, Usman held various global roles at SAP, including Vice President of Corporate Development, Product Management, Sales Enablement, and Digital Commerce.
Usman frequently serves as a guest lecturer on AI and B2B sales and marketing at renowned business schools such as the University of Texas, University of Wisconsin, University of Alabama, Louisiana State University, and Clemson University.
A graduate of the University of Michigan, Ann Arbor, Usman’s diverse passions extend beyond business. He enjoys Squash, architecture, design, cooking, and hiking.