Account Targeting

Account Targeting

A Tool for Dynamic Growth

September 24, 2019

As soon as your customer and prospect database is up and running, the next step is to prioritize accounts and advise sales representatives on how best to focus their efforts.

Often, sales teams fall into one of two categories, 1) They focus on closing the largest deal to earn the highest commission, or 2) They focus on closing the easiest deal to allow time to pursue other accounts (an approach often tied to a less than optimal compensation plan). Account targeting helps sales representatives strike the right balance between the opportunity for an increased commission and the likelihood to close. When balanced, this combination can create a more predictable sales engine.*

Our experience with our portfolio companies has helped us to develop a few tactics for creating effective account targeting plans. Here are some of the most effective:

“It is important to emphasize that targeting is a combination of the quantitative output from the weighting formula and the qualitative judgment a sales representative applies based on their knowledge and experience.”

Account Targeting: A Tool for Dynamic Growth


In an ideal world, there would be enough historic sales opportunity data to conduct sales life cycle and win-loss analyses to identify key characteristics of the ideal prospect for our customers to target. However, few companies have the luxury of access to that information.

We’ve found that leveraging the collective wisdom of the management and sales team is a simple alternative. To do so, we create a survey that includes a set of variables of prospect characteristics ideal for targeting. Each survey participant is then asked to allocate $100 across the variables. Whether they decide to place the full $100 on one variable or across many, their allocation should reflect what they consider most important for prioritizing accounts.

Once you aggregate the allocations from across the team, the variables which are the most “funded” will be those the teams collectively consider most integral to the targeting formula. Using this, the team can build a weighting formula for each account that gives a score for prioritization. Of course, the formula may vary by product, as certain variables are dependent on the product or service offered.



There is a delicate balance to strike with sales representatives on prioritization. If you offer them a list of accounts numbered 1 through 250, the approach to account #15 should be likely close to that for account #17 and fundamentally different than the approach to account #190.

If not empowered to use their judgment, representatives can be dismissive of the prioritization. So, it is important to emphasize that targeting is a combination of the quantitative output from the weighting formula and the qualitative judgment a sales representative applies based on their knowledge and experience. Positioning account prioritization as a tool for representatives to use rather than as a compulsory rule for them to follow allows them greater flexibility in accomplishing company goals.



The value of account targeting is more evident when sales representatives begin to more effectively hit their targets and see the value themselves. Sharing wins early (e.g., prospects moving through the sales funnel or prospects entering the pipeline) can incite greater momentum—especially for those who have been in their territories for quite some time.



A well-managed CRM should make account targeting an ongoing system to help sales representatives properly target accounts. Similar to how your CRM can load new information to the prospect database as it’s developed, it can also be calibrated to calculate a weighting formula and reprioritize accounts as more information is collected. For fields in which information is still in the collection stage, an average score can be assigned to the given account until enough information is received to score it more accurately. Account targeting is not a replacement for real customer segmentation work, as the customer and prospect database and account targeting go hand-in-hand. It is a useful tool, that when used early, can encourage representatives to focus on the right opportunities as you build a repeatable sales flywheel.


*Assuming most accounts are not with large enterprises, which tend to be more sporadic.

Serent Capital invests in growing businesses that have developed compelling solutions that address their customers' needs. As those businesses grow and evolve, the opportunities and challenges that they face change with them. Principals at Serent Capital have firsthand experience at capturing those opportunities and navigating these difficulties through their experiences as CEOs, strategic advisors, and board members to successful growing businesses. By bringing its expertise and capital to bear, Serent seeks to help growing businesses thrive. Learn more about our portfolio companies.



Want to receive more updates on Serent Capital?

At Serent Capital, we work hard to create effective and longstanding growth with all our portfolio companies. Here’s what we’ve been up to recently.


Nothing presented herein is intended to constitute investment advice, nor sales material, and no investment decision should be made based on any information provided herein. Information provided reflects Serent's views as of a particular time and are subject to change without notice. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. While Serent has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third party information presented herein. Past performance is not indicative of future results. There can be no guarantee that any investment strategy employed by Serent will be successful. A full list of portfolio holdings is available on Serent's website.