Assessing the value of an account
By assessing the value of an account you’ll be able to ensure you’re applying the right approach, as well as prioritising the most lucrative accounts. This is key, according to Mike Boogaard, co-founder and CEO of ABM agency Alias. “Spending money on accounts that aren’t going to convert is expensive,’ he says.
Mike suggests liaising with the sales team to understand what relationship they already have with the account candidates, including deals with ‘look-a-like’ accounts. It’s here you need to use all the business intelligence you have on the account to feed into your assessment.
Mike also warns against just looking at the annual value of account. “If you only focus on annual value, you’re not necessarily going to invest as much as you would if you has looked at the total value. For example, there may have been a big up-sell on an account after two years of business with you which you’ve not looked at,” he explains.
Choosing your strategic accounts
Many ABMers are now adopting models to help them select and classify accounts, an agreed method not only takes the politics and emotion out of the decision-making, it also lowers the risk of missing crucial factors.
Rachel Tait, head of ABM UK&I at the computer software company SAS, uses a strict and comprehensive scoring model to choose the best accounts for its ABM. It’s centered on the three Rs of revenue, relationship, and reputation. “But we also look at spend opportunity, engagement opportunity, and our internal team make-up,” she adds.
The model helps determine whether the account represents enough financial rewards, whether SAS’ existing relationship with it is strong enough to unlock that value, and whether the account’s reputation as a business fits with SAS’ ethos. If all the factors align positively the account will either become part of a cluster or a one-to-one programme. Those that don’t meet requirements are passed onto a wider and lighter ABM practice.
Refinitiv is another business to have deployed a selection process. “This is our first year, so it’s not as smooth a process as it’s going to be in the future, but we’ve got a new account selection criteria, which will help,” says Kate Tomlinson marketing director at Refinitiv.
Similarly, it’s model divides account criteria into three stages: Opportunity, achievability, and co-operation.
- Opportunity. Kate and the team assess whether the account represents an opportunity. “For example, they might spend a lot in the category we’re selling in but not necessarily with us,” says Kate. “Or we might know there’s something coming up with the account that we can prepare for and meet that demand when it arises.”
- Achievability. Once an opportunity has been outlined, the Refinitiv team assesses the likelihood of achieving it. “How does the account view us? Do they see us as a strategic partner? Is there any upcoming budget or purchasing plans – or are they in cost-saving mode?” Kate questions.
- Co-operation. Lastly, Refinitiv investigates whether it has the necessary resources to target the account i.e. buy-in from the specific account managers. “Provided we think these are good accounts to work with, do we then think we’ve got co-operation from colleagues we’ll need to work with? Do they see the value in ABM? And are they willing to dedicate their time and resources to this?” asks Kate.
Putting collaboration into actionThink about how you can actively encourage collaboration outside the realms of your usual meetings with sales. "Even if they may have been brought in by marketing, sales needs to be just as aware of what ABM is. The key is making sure that sales are included earlier. The first thing, I think, is go to events like the ABM Conference with your sales team and learn together," says Mike. Rachel of SAS has decided to implement the education piece by running insight and research workshops for anyone who comes into contact with ABM accounts. This includes not just marketing and the account team, but pre-sales, training, and customer services. It’s here that Rachel and the team gives a run-down on what’s happening within an account and their ambitions for the future.
Working with sales
Sales and marketing alignment is a pillar of ABM. It’s considered best practice to bring sales in at the account selection stage to collaborate on the decision with marketing.
Mike agrees: “If you ask me why most ABM programmes fail, I would say it’s from a lack of education on what ABM is and not creating a foundation of collaboration with sales.
He sees the sales team as the driver of the initial account identification and selection, because sales are likely to have the most intelligence on them. The marketing team should then be the ones to refine the proposed accounts and ensure they meet ABM criteria.
“Having said that,” says Mike. “There’s always the potential for sales to go after their own accounts and give marketing the green fields and net new logos to go after because they think marketing has got some magic way of converting the accounts they can’t.”
Setting time frames
As ABM has a notoriously long sales cycle, it can be difficult to ascertain when it’s time to give up on an account. SAS expects to begin seeing ROI at 12 months, which led the company to work in 12-month spates on chosen accounts. “After 12 months we have a period, which we call ‘the transfer window’,” says Rachel. “We’ll assess the whole process, and make sure those accounts are still correct for ABM.”
If there are indications throughout the year that the account is no longer right, Rachel and the team may decide to withdraw it. A more promising account will go in its place, and the final selection will be locked into the programme for another year.
