Posts tagged as:

vertical markets

I just hosted a webinar introducing the second edition of my book, 42 Rules for Growing Enterprise Revenue: Practical Strategies for Increasing B2B Customer Relevance.

Watch the webinar to get a quick overview of 7 strategies for becoming more relevant to customers:

  • Selecting markets where you matter
  • Focusing on customer interactions rather than your org chart
  • Using context to define and articulate value
  • Collaborating with customers
  • Moving from products to solutions
  • Exploring vertical market alignment
  • Empowering your sales channels

Enjoy, and let me know what you think!

Ways to Matter More to Customers, Lilia Shirman from Laura on Vimeo.

 

Be Sociable, Share!

{ 0 comments }

We just sent out a summary to the participants of this year’s Industry Specialization by B2B Vendors Benchmark Study.   We had a record 120 B2B companies take part in this year’s study.

Companies see that greater customer focus, in the form of industry-specialized sales, marketing, services, and products will enable them to access more senior decision makers and increase deal sizes.  Many are also responding to competitive pressures. The good news is that the investment is paying off.

The full report is due out next month, but meanwhile, a sneak peak at a few tidbits:

  • 67% of B2B companies that already have some amount of industry specialization said they plan to further increase their focus on key vertical markets.
  • It takes two to three years to begin to realize the full benefits of specialization.
  • After 2 years, 70% of companies reported notable or significant impact on revenue from their investments in industry-specialized activity
  • Industry alliances have a big impact on brand awareness
  • Industry-specific case studies and quantitative ROI analysis were reported to be the most valuable industry-specific marketing tactics.  Sales and marketing brochures were least effective.
Be Sociable, Share!

{ 0 comments }

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.

Be Sociable, Share!

{ 0 comments }

What advice would you give small companies trying to prioritize target industries?   Robbie Baxter of Peninsula Strategies, an expert in on-line, recurring revenue streams, asked me a this very interesting question!

At companies with a sales history, industry-specific activity and resources are focused in two kinds of areas:  Where most revenue is coming from already (this is by far the more common focus area), and where there is greatest opportunity for growth in the future.    There can be lots of complex analysis, but in reality few big companies do much proactive planning.  That’s a whole other blog, though.

With a smaller company, the first part of that equation is missing. They don’t have the sales history, references, and channels to naturally leverage into an already-active vertical market.

So, here is a try at some things I’d look at as a small business deciding where to focus.

1. What industry will value what you do most? Where will you impact mission-critical results?

2.  Over time, what group of customers are going to be needing you more and more (and feeling increasing pain you can solve) due to external pressures and trends in their industry?

3. Where are you best able to access the financial decision-makers? (This is a combination of your company’s existing connections and lists, and the target industry’s propensity for doing business with small companies.)

Note that its easier to find ways to reach financial decision-makers than to change the core value of what you do or convince an industry to focus on non-critical issues.  Unfortunately, many small companies start with #3 as the first, not last criteria for selecting target markets.

Please comment with your own thoughts on selecting target industries at small companies.

Be Sociable, Share!

{ 2 comments }