In part 1 of our ABM Fast Track blog series, we covered the roles and responsibilities of your ABM team. We showed you how to leverage the skills of your current team. We outlined how you can get your entire organization involved with ABM, and we finished with a roadmap for building out your full ABM team.
In this post, we’re answering the question, “What is the right amount of time, money and resources dedicated to each tier of target accounts?”
To help you answer this question, we’re giving you the account entitlement worksheet that we use at Engagio. You can download the full worksheet here:
Start with Account Entitlement When Selecting and Tiering Your Target Accounts
With all of the frameworks, opinions and theories of ABM being thrown around, the one that they all agree on is that selecting target accounts is the most crucial and first step. Many companies have adopted the same 3-tier approach we take at Engagio for selecting the number and priority for those target accounts.
But, most organizations overlook tier entitlement. In other words, they don’t thoroughly answer the question “what is the right amount of time, money and resources dedicated to each account in each tier?”
You pay a price to penetrate and close an account. Whether you pay with time or money, both are a limited resource, which means you must be judicious with how they’re spent.
If you spend all of your time on personalizing your interactions for your Tier 1 accounts, you’re left with no other choice than to automate interactions for your Tier 2 and Tier 3 accounts. In other words, you spam those accounts, which breaks the rules of ABM. In the same vein, if you spend all of your ABM budget on elaborate direct mail and costly ads on your Tier 1 target accounts, you lack channels diversity, and you’re left with only the traditional channels of phone and email for Tier 2 and 3. This, again, breaks the rules of ABM.
Do you see the importance of account entitlement?
We’ve created this worksheet to walk you through the process, which you can download here.
Developing Your Account Entitlements
Ok, now let’s run through how you can apply account entitlements. Here’s a framework for how to go about setting up your entitlements.
1 – list your resources: In order to select your target accounts and split them up into their appropriate tiers, begin by counting all of your recourses – how many reps do you have, how much time in a week do they have for prospecting, what’s your budget, etc.?
2– set your baseline: Next, start with “best practices” as your baseline for the number of target accounts per tier.
- Tier 1: 10s
- Tier 2: 100s
- Tier 3: 1,000s
3– list your ABM programs: Then, list out all of your ABM programs. This is anything that will cost either the your reps’ time or money from your budget. This typically includes direct mail, ads, tradeshows, micro-events, custom content, etc.
4 – input your numbers: Define what you think should be a reasonable output of a specific resource, given the account tier.
5 – refine your numbers: Now, start playing with the numbers until they add up. This is the tough part and will likely require a few sessions with your Sales and Marketing leadership to get right. If you are dead-set on doing a certain set of activities for your Tier 1 accounts, but you’re out of resources, there’s only one option – reduce the number of accounts in that tier.
This is an extremely oversimplified example, and should serve as exactly that – an example:
In part 3 of the ABM Fast Track blog series, we’ll be talking about how to get crucial insights, build relationships and better position yourself to close the deal with Account Plans. We’re also giving away the Account Planning template that our ABM team uses.