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The Sales Operations Guide to Account Segmentation

Learn how to effectively segment accounts to prioritize sales efforts, optimize territory designs, allocate resources, and deliver targeted content to high-value customers.

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The Sales Operations Guide to Account Segmentation

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  1. The Sales Operations Guide to Account Segmentation Account Segmentation

  2. Segmentation deliverables

  3. Account Segmentation Purpose:Knowing Ideal Customer Profiles and customer / prospect segments and their relative size, sales and all support functions can concentrate their efforts on those with the greatest likelihood to buy. Application:Sales and sales management are better able to prioritize upsell, cross-sell and new acquisition activities. Sales Ops can optimize territory designs, compensation plans and quotas, account assignments and resource allocation. Marketing will more effectively deliver content targeted to these high value customers and prospects. Product can more accurately determine who to target in the development of products and services. Caveat: Without Account Level segmentation, you will not achieve these results.

  4. Ideal Customer Profile (ICP) 1 Capture existing transactions by product / solution sets Enrich with 3rd Party Firmographic data 2

  5. IDEAL CUSTOMER PROFILE (ICP) 3 Conduct correlation and multiple regression analysis to identify attributes that best predict spend and opportunity Which variables are most closely related to total customer spend? Which are most predictive of spend by product / solution sets? How do we use this insight to build the model?

  6. DETERMINE UP-SELL/CROSS-SELL 4 Using variables with highest returned multiple R value Use the 80th Percentile Customer Spend: • Per $M in organizational revenues • Per Employee • Per $M in organizational asset value Apply 80th Percentile to all customers within distinct sub-industries to determine achievable spend Calculate difference between current actual spend and total potential to arrive at Up-Sell and Cross-Sell opportunity by customer

  7. DETERMINE PROSPECT POTENTIAL Prospects by sub-industry that are not currently spending are identified based on how closely they “mirror” existing “Ideal Customers Based on segments created previously, estimated spend is assigned based on matching firmographics 5

  8. Activate at field level 6 Distribute account-level potential to the sales organization • Up-Sell, Cross-Sell and Prospect potential at account level • Distributed to rep level with clear expectations communicated to all • Used as the basis for prioritization, one-on-one coaching opportunities and comparative performance

  9. Account-based marketing Demand Generation, Lead Management & Sales Process Total Market Potential Quota Setting Compensation Account Prioritization & Coaching Talent Management Territory Design

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