Account segmentation
In short
Account segmentation is the practice of dividing your target companies into groups based on shared characteristics. Each group gets its own messaging, channels, and sales approach.
It sits between your overall market and individual accounts. Segments are broad enough to run repeatable campaigns, but specific enough that the message feels relevant to everyone in the group.
Common ways to segment accounts
- Firmographic: Industry, size, region, or revenue band.
- Technographic: The tools or platforms the company uses.
- Need-based: The problem they are trying to solve, such as entering a new region or replacing a legacy system.
- Lifecycle: Prospect, open opportunity, customer, or lapsed customer.
- Value: Expected deal size or strategic importance.
How to segment accounts
1. Choose the dimension that changes your message
Segment on traits that would change what you say or offer. If two groups would get identical emails, they are one segment.
2. Keep segments actionable
Aim for a handful of segments a team can actually serve. Say a team sells to software and logistics firms in two size bands. Four segments are workable; forty are not.
3. Assign plays to each segment
Define the pain points, proof points, and channels for each group. A mid-market segment might get sequences, while an enterprise segment gets one-to-one outreach.
4. Review with results
Track reply, meeting, and win rates by segment. Merge segments that behave alike and split those that do not.
Account segmentation vs. account tiering
Segmentation groups accounts by similarity. Tiering ranks them by priority or value. Many teams use both: segment by industry, then tier within each segment.
Common mistakes
- Segmenting by what is easy to filter: Company size is simple to filter but may not reflect the real buying driver.
- Overlapping segments: If an account fits two segments, reps will not know which message to send. Set a rule for which wins.
- Static lists: Accounts move between segments as they grow or change tools. Refresh membership regularly.
Account segmentation FAQs
What is the best way to segment target accounts?
Segment on the traits that change your message or offer, such as industry, tech stack, or the problem they are solving. Start with two or three dimensions, keep the number of segments small enough to serve, and test them against results.
How many account segments should you have?
Enough to tailor messaging meaningfully, but few enough that your team can build and run plays for each. For many teams that means three to six segments. If two segments get the same message, merge them.
What is the difference between account segmentation and account tiering?
Account segmentation groups accounts that share traits or needs. Account tiering ranks accounts by priority, usually by fit and potential value. Teams often segment first and then tier accounts inside each segment.
How is account segmentation used in ABM?
In account-based marketing, segments let teams run one-to-few programs, where a group of similar accounts receives shared content and campaigns, instead of building a custom program for every company.
