87% of the companies who run account-based marketing initiatives say they outperform other marketing campaigns in delivering ROI

The value of contracts closed using ABM campaigns is also significant with 91% of marketers saying their average contract is valued at over $51,000. Of those, one-third estimate their average contract value stands at over $100,000.

To achieve results like these, dedicate resources to account-based marketing segmentation. Segmentation lets you create highly relevant campaigns for each group, which drives stronger ROI.

In this guide, we share how to segment your ABM list and ways to market to each target group.

What is account-based marketing segmentation?

Account-based marketing segmentation involves dividing your account list into meaningful segments, enabling you to target them with highly relevant messaging that speaks to each segment’s specific pain points.

For example, an ABM team may segment their exhaustive list of potential customers into 2-3 groups.

Why should you segment your target account lists

ABM segmentation requires upfront effort, but the returns justify the investment.

By dividing your target accounts into separate groups based on factors like where they are in the sales funnel, you can take advantage of the following benefits:

• Better personalization: By dividing accounts that share certain characteristics into segments, you can create more targeted marketing campaigns. This lets you factor in buyer intent, engagement history, and specific pain points. Your campaigns become more relevant, which increases engagement and conversion rates.
• More strategic use of resources: Account-based marketing segmentation helps you plan how much time and resources to dedicate to each segment. This reduces wasted spend and improves campaign performance.
• Improved ROI: “[ABM segmentation] helps you to target your marketing and sales efforts more effectively, resulting in increased ROI,” notes Will Yang, Head of Growth at Instrumentl. To top that, strategically using resources assists in their efficient use, contributing as another factor that improves ROI.
• Gain a competitive edge: While ABM programs provide a competitive advantage, segmentation takes that advantage further. ABM segmentation gives you an edge because most companies skip this step, even when running ABM campaigns.

How to create your own ABM segmentation

Segmenting your ABM program enables more targeted personalization, which improves close rates and ROI.

Segmentation works whether you're launching your first ABM program or optimizing an existing one.

Follow these three steps to create your ABM segmentation strategy:

Step 1: Divide your total accounts list into target market segments

Your total accounts list includes all the accounts that you think could be potential customers. These are accounts you'll reach with marketing content using minimal personalization. The goal is awareness, not active nurturing.

Divide this list of total accounts into a list of target market accounts that align with your ideal customer profile (ICP) but that aren’t yet ready to buy. Create a separate list for each market you’re targeting.

Aim to nurture the target market segments on this list without actively pursuing them.

Step 2: Segment target market accounts into target accounts

Next, create another segment from the target market accounts list you made in step one. This time, include companies that are aligned with your ICP and, unlike your first list, are ready to buy in this segment. You can call it target accounts.

Since this segment is ready to buy, actively nurture these accounts with highly personalized content and focused relationship building.

Step 3: Create a segment of priority accounts from your target accounts segment

If you wind up with a big target accounts list, you can segment it even more by creating a priority accounts list. This group should include accounts that you’ve already built relationships with and are ready to buy.

Since the priority accounts list is more likely to convert than any other segment, dedicate the most resources to it and offer the highest level of personalization.

Isaac Ware, Director of Demand Generation at UserGems suggests you address purchase objections your priority segment may have to help them make a decision. “Software purchases are always a huge decision, especially for smaller companies, so the more we can ease their mind, provide examples of success, and facilitate the conversation between them and their sister companies, the more value we can provide them,” Ware explains.

Tips for an effective ABM segmentation strategy

Your ABM strategy's effectiveness depends on consistent execution of these tactics. After segmenting your account list, use these tactics to strengthen your ABM program:

1. Segment only if needed

In other words, “Don’t segment for the sake of segmenting” as Ware puts it.

“With highly segmented targeting, balance relevance with respect for buyer privacy.” So it’s important to think of your prospective buyer when you’re segmenting your ABM strategy.

Ask yourself: will ABM segmentation provide more value to the buyer? Segment only when the answer is yes.

Ware explains how we do it here: “For UserGems, we focus on only segmenting when it can provide additional value.

“With our main ABM motion, we are showcasing our job change tracking by segmenting down to 1:1 in order to serve a job change to the target company — providing value in the form of a ‘free lead’.

“In our 1:many approach, we are again making sure we provide value. For instance, we target companies that share the same investor, sister companies. We want to share something that is working for a company similar to them.”

2. Use account-based scoring to create segments

Account-based scoring, or predictive lead scoring, is an AI-generated score that powerful CRMs allot to accounts based on the following factors:

• How well the account aligns with your ICP
• How the account is interacting with your marketing campaigns (to determine their buying intent)
• How accounts similar to the target account have converted in the past

After analyzing your accounts, the CRM gives a score to each one based on how likely they are to convert. “Use account-based scoring to rate and rank your target accounts,” recommends Yang from Instrumentl. “This will help you to prioritize your efforts and focus on the accounts that are most likely to close. This will also help you to keep track of your progress and performance over time.”

Put another way, account-based scoring will help you create segments by identifying accounts you need to nurture, target with personalized content, and add to your priority accounts segment.

3. Map out organizational structures for target and priority accounts

Work on mapping out accounts’ structure so that reps can start building relationships within the company.

This is crucial for sales multithreading — nurturing different people from the same account so you have various contacts at a single company. This protects your deal if a single point of contact leaves the company.

Multithreading is also valuable because teams now democratize decisions. Software decisions typically involve multiple stakeholders. When most of them support your solution, your close rate improves.

Mapping account structures also helps you identify former customers who used your tool successfully in previous roles, giving you warm paths into new accounts.

If you’re using UserGems for tracking customer job changes though, you can automatically get the names of ex-customers in your inbox. Then, you can target them right away to get into a new account without having to track job changes manually.

Get Inspired: Which contacts should I track for job changes?

4. Focus on making it actionable for the buyer

Your ABM segmentation strategy drives stronger ROI when you pair it with targeted tactics for each segment.

For instance, build awareness within your total accounts list and create actionable content for the marketing channels these accounts use to get in front of them.

Similarly, for nurturing target market accounts segment, create content such as webinars and playbooks that address their specific pain points. Other marketing tactics to use here include paid social ads, paid advertising, and hosting in-person events.

For engaging the next segment (target accounts), which is made up of the accounts that are ready to buy, use personalized marketing tactics. For instance, personalized ads, targeted emails, and offering discounts to events such as product-based webinars.

As for the last segment, (priority accounts), take your personalization level up a notch by creating customized content like personalized product demo videos and making 1:1 marketing support available.

While sales reps should focus on building strong relationships with both target accounts and priority accounts, you’ll typically want to spend more time on priority accounts because they’re more likely to convert.

5. Use the right tools to speed up results

While account-based marketing segmentation drives strong results, it requires more upfront effort than other sales strategies. Tools that automate ABM segmentation tasks save time and resources while maintaining the benefits of targeted campaigns.

Here are some of the tools you should consider:

• A powerful CRM with predictive lead scoring. Not only will this software help you create more focused account segments, but it’ll also improve coordination between sales and marketing teams.
• Sales prospecting tools like ZoomInfo. ZoomInfo helps you identify accounts that are a good fit for your product. Along with similar sales intelligence tools, it tracks accounts at the beginning of their buyer’s journey so you can reach out before competitors do. As an added bonus, ZoomInfo also assists in mapping out accounts’ org structures.
• ‍Account tracking tools like UserGems. UserGems helps with pipeline generation by giving you a list of warm accounts to target. It identifies any previous users in new accounts, which is a great way to generate warm leads who are likely to convert.

Make ABM segmentation work for you

Account-based marketing segmentation helps you create hyper-personalized marketing campaigns that deeply resonate with target accounts. And, it allows you to determine how many resources to dedicate to each segment, reducing resource waste and increasing ROI.

ABM segmentation works when you focus on addressing specific buyer needs and building genuine relationships.

Luckily, using the right account-based marketing tools can help create a well-defined, ROI-driving ABM segmentation strategy. It’ll also give you a chance to target accounts through warm introductions. For example, by reaching new accounts through previous users who can vouch for you.

Ready to track accounts with UserGems so you can find the warmest leads? Book a free demo today.

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