How to create your first target account list for ABM

Whether you’re launching a new product or refining your existing strategy, having a well-defined target account list is crucial for the success of your Account-Based Marketing (ABM) efforts. ABM is all about focusing your resources on a select group of high-value accounts to maximize conversion rates and drive more significant revenue.

1. Have a functional Ideal Customer Profile

An Ideal Customer Profile (ICP) is a foundational document that specifies which type of clients you are targeting. A functional ICP helps narrow down and create a list from all the available market opportunities, ensuring that your efforts are targeted and efficient. At a minimum, your ICP should include:

• Industry: The sectors or verticals where the ideal customers operate
• Company size: Measured by the number of employees or revenue
• Location: Geographic regions where the ideal customers are based
• Technology stack: Existing technologies and tools used by the company
• 10 sample accounts: List of 10 accounts that fit the ICP agreed on by stakeholders

Identify & utilize signals

Signals are specific indicators that a company might be a good fit for your product. These can vary widely depending on your industry and product offering. Identifying and leveraging these signals can help refine your target account list and increase the likelihood of conversion. Some examples of signals include:

• Specific department sizes: For instance, if your product is HR-focused, you might look for companies with a significant HR team.
• Growth or recession indicators: Companies that are rapidly growing may have a need for scaling solutions, while those in recession might be seeking cost-cutting measures.
• Participation in industry events: Companies that frequently attend industry events are often looking to stay on the cutting edge and may be more open to new solutions.
• Hiring trends: Analyzing job postings can provide insights into a company’s expansion and investment areas.
• Technology gaps: Identifying companies that lack certain technologies can highlight potential areas where your product could provide significant value.

Apply filters to narrow down your list 

Filters are essential in the list-building process as they help disqualify accounts that are unlikely to convert. These filters ensure that you do not waste time and resources pursuing accounts that do not fit your ICP or have significant barriers to entry. Examples of effective filters include:

• Incompatible technology integrations: If your product doesn’t integrate with a company’s existing tech stack, they are unlikely to be a good fit.
• Outsourced key roles: Companies that outsource key functions might have less need for your solution.
• Preference for homegrown solutions: Some organizations prefer to develop their own solutions rather than purchase third-party products.
• Layoffs or hiring freezes: Companies undergoing layoffs or hiring freezes may not have the budget or interest in exploring new products or services.

2. Confirm ICP with Stakeholders & CRM

There are two main checks you need to do with your ICP before starting list building:

You need to start by having a meeting to consult with all stakeholders from relevant areas and ask them very clearly if they believe that you:

• Have a proper value proposition for this audience that will set you apart from other competitors
• Believe you are able to close them in a sales process and have the right material (case studies, references, etc.)
• Believe you will be able to service them and upsell the account

The next thing you need to do is cross reference with CRM. On top of consulting with the key stakeholders of each department, you should make a quick export of your CRM and try to answer the following questions:

• Do I have companies of this industry and size in my client base?
• Do I usually win / lose deals in this segment?
• Are the companies in this segment likely churn?
• Do I have a history of high NPS with this type of company?
  
  

Note: Your ICP and target list should not be a dream list. It should be a list of companies that you believe you can both close and service properly, ideally based on historic data or team expertise.

3. Find the relevant information source

Identifying the right sources for your initial list of companies is a key step to know what you will shortlist. There are a couple of ways you can do this but it largely boils down to identifying proper information sources:

• Are you targeting any B2C companies? If so Google maps, Yelp, Google Reviews and SEO tools can be a great way to find target companies.
• Targeting traditional B2B? LinkedIn is always a safe choice, however Crunchbase or Zoominfo are also valid alternatives.
• Going after a regulated market? Industries like banking, insurance, healthcare, and legal are usually regulated by a federal or state entity that list all of its members.
• Are you targeting specific Industries? Some Industries have specific data providers such as healthcare, or non profit. Additionally you can always find trade associations or sometimes business chapters for entrepreneurs.

The right information source is not only the one that has the information, but also the one that has the right filtering and targeting criteria you need.

4. Extract & enrich your data

Now that you have your information sources, it's time to extract and enrich your data.

Extraction

Once you have determined your information sources, the next item in the agenda is to extract and enrich. The initial extraction can be done using tools like DataMiner.io or Octoparse for complex web scraping. For LinkedIn, tools like Phantom Buster can automate the extraction of company data. If scraping isn’t your expertise, consider outsourcing this task to freelancers on platforms like Fiverr or Upwork.

Enrichment

After extraction, you’ll need to enrich your data to ensure it’s complete and actionable. Enrichment might involve adding details such as:

• Domain and website traffic: Use tools like BuiltWith to identify the tech stack and SEMRush for traffic insights.
• Revenue and headcount: Platforms like ZoomInfo or LinkedIn Sales Navigator can help fill in these details.
• Customer sentiment and product use: Tools like G2, Google Reviews, or Yelp can provide insights into customer satisfaction and potential needs.

Enrichment is crucial because it transforms raw data into valuable insights that drive better decision-making.

5. Segment your target list 

While enrichment is truly where the brunt of the work is, segmentation is the most important part. Segmentation refers to using all data points enriched to try to answer the question: Which of these accounts are most likely to buy from me first?

Basically, it’s not enough to have a list; you need to understand which accounts to prioritize. Use a two-by-two matrix to score accounts based on:

Friction: How likely is the target company to be looking for a vendor? How well does your solution meet the company’s needs? Do they have the infrastructure, budget, and interest?

Fit: How good is my solution for them? Do they have the right number of seats for my solution? How big is the potential deal size? Are there potential barriers, such as existing vendor relationships or budget constraints?

• Companies that score high on both dimensions usually go into what we call Tier 1 Accounts
• Companies that only score high one dimension usually go into Tier 2 accounts
• Companies that score poorly on both dimensions might go into Tier 3 accounts or just not be considered at all.

The concept of scoring high or poorly is rather relative to your total market size. 

6. Limit your list size

When doing your list building and then your list segmentation, you might feel the impulse of hoarding as many accounts as possible. However, that will most certainly end up being counter productive.

One of the biggest mistakes in ABM is trying to go after too many accounts. Focus is the name of the game. ABM is about quality over quantity, ensuring that your team can give each account the attention it deserves. It is extremely important to make the conscious decisions of the accounts you will NOT go after so that you can focus your resources on the right account.

A good rule of thumb is to maintain a list of no fewer than 100 and no more than 350 accounts per quarter, adjusted for the size of your sales team and average contract value. This balance ensures that your efforts are focused and manageable, increasing the chances of success.

Taking your ABM to the next level

Creating your first target account list for ABM is a strategic process that involves careful planning, stakeholder alignment, data enrichment, and thoughtful segmentation. 

Remember, ABM is about creating meaningful engagements with the right accounts. As you refine your target account list, continuously revisit and adjust your ICP, signals, and filters to stay aligned with market shifts and company goals. 

By focusing your resources on accounts that have the highest likelihood of success, you can drive more impactful results and set the stage for long-term growth. With these steps, you're well on your way to creating a targeted, effective ABM strategy that will help you win high-value customers and build lasting relationships. 

Need help with ABM or want to learn more? Reach out to us! 

See our blog: Integrating Account-Based Marketing into PLG and SLG strategies.

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