Customer segmentation is extremely powerful as it allows marketers to bracket their customers based on the similarities that they possess which makes it easy for targeting. With segmentation, you can send highly customized messages to your customers, thus giving your business the much-needed fillip to convert your hot leads to paying customers.
A lot of businesses struggle with segmentation. If you have never thought about including segmentation in your marketing campaigns, here’s a statistic that will push you into action. Campaign Monitor says that customized and segmented email campaigns see an average of 760% increase in revenue.
Advantages of customer segmentation:
- It allows you to focus your efforts on the right target instead of going haywire with your marketing.
- Puts you in a place where you can provide more value for recipients
- You can make your offers much more attractive because you know what they want
- Reduce Cost Per Lead with segmentation since it helps you create quality and specific content for each audience type
- Content Marketing gets aligned and you will be sending content based on the type of user
Here is how you can segment your B2B leads:
There are different types of segmentation based on the products and the kind of brand you are:
Segment based on Firmographics:
It is the type of data that can be used to categorize businesses, such as industry, type of organization, number of clients, company location, technologies used, annual revenue, etc. B2C marketers use demographic data while B2B marketers use firmographic data to segment their customers. One of the better things about firmographic data is that it is easy for anyone to interpret it and the expenses to collect such data are also on the lower side.
With firmographic data, you cannot make assumptions as it is too early to say with certainty that a certain segment of customers will behave in a way. When you segment customers based on firmographic data, you should target the potential customers who are in top-of-the-funnel.
In this type of segmentation, you segment them based on your goals and how your customers match with it. For example, if you are looking for companies with an ARR of $10 million, it could be one segment of your customers. You could also segment your customers based on how much revenue you think they will be able to bring. In other words, you are ranking your customers based on the goals that you have. One form of tier-based segmentation is account-based marketing (ABM) which has gained a lot of respect today because it is extremely effective.
In ABM, you concentrate on a specific set of accounts where you create personalized campaigns. The goal of ABM is to work with a few potential leads, gain maximum knowledge about their requirements and get the highest value for the business.
Customer Segmentation based on Needs:
When you segment your customers based on needs, you are splitting them into groups based on what they are looking for in your product. This is why it says segmentation is done based on the needs of the customer. It is a highly scalable segmentation type because your customers have different types of needs and once you are able to ascertain them, you can easily give them targeted content based on it. The only drawback of this method is that it is difficult to define the needs of the customers.
Customer Segmentation based on Sophistication:
In this type of segmentation, you segment your customers based on how aware they are about the problems they are facing. If they do not have any idea that they would need a product similar to yours and the worst is when they do not have an inkling about a problem in the first place, then segmentation based on customer sophistication will not work. For example, a fast-growing startup might not have realized that they need to buy a bigger server space. You do not have to explain if they already know, which makes it easy to sell your product if you can convince that you are the most efficient vendor in the market. If not, then making them understand that they will soon face a problem can be too much effort for nothing.
Customer Segmentation based on Behavior:
Understanding the behavior of customers helps you in drafting solutions for their needs. When it comes to segmentation, behavioral segmentation is much more powerful as it helps you to identify the ways in which customers choose a product. Behavior segmentation is done based on buying patterns, usage frequency, brand loyalty, benefits needed, etc. With behavioral segmentation, you can also check out customers who show loyalty towards the brand. Use this to create a loyal base of customers.
Your B2B sales leads can come in different formats and they might even come from potential customers who are in the awareness stage of the sales cycle. With a lead segmentation program in place, you will be able to know how exactly you can tune your offerings to close the deal. The hallmark of a great digital marketing campaign is ensuring that the right content is sent to the right audience using the right channel. If either of these things are misplaced, then the ROI of your marketing campaign would see a drastic shift, mostly downwards.
With Adapt, you can create powerful email campaigns that will help you forge a strong relationship with your prospective customers by sending them the information they have been looking for.