5 Ideas to Slice and Dice Your Market

by Lilia Shirman on April 3, 2009

in Customer relationships

Given that segmentation is the cornerstone of marketing, I am often surprised at how little of it B-to-B companies actually do.  Company size and geography are often the only criteria for segmentation, with industry being a distant third. There are other ways to slice and dice.  A few ideas:

1. Look at customer characteristics such as tolerance for risk, speed of technology adoption, core business driver (are they technology-driven, customer-driven, supply-chain driven, etc.)  – some may be much more likely to buy from you than others.

2. Separate customers with different levels of familiarity and experience with your company and products – your objectives and sales approach will be very different.

3. Split companies up by specific situations, business processes, or use-cases that are common to an industry or a business models.   The solutions and services you offer them will vary drastically.

4. Define audiences based on their roles and responsibilities within an organization or within the decision-making process.   Also consider segmenting by organization structure and culture – highly hierarchical, process-focused companies need a different sale then flat and agile organizations.

5. This seems painfully obvious, but then again, its rarely done:  Segment based on actual customer objectives.   This one is difficult and takes account-specific research to determine who fits where.  So we tend to just assume that all companies in an industry, experiencing the same pressures (you know, the slide that says “Increased competition, Decreasing customer loyalty / ease of switching, regulation and/or deregulation, growing complexity of IT environment..”) must have the same objectives.  But in fact, some are looking to get bought, some want to grow internationally, some want to raise revenue from existing customers, while other are focused on boosting profitability.

Most companies also under-utilize the insights that segmentation provies.  Next time we’ll explore the uses of segment characteristics in various parts of your organization.

Comment and share some innovative segmentation criteria you’ve seen used by BtoB companies.

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