Customer segmentation and research are some of the most important techniques employed in B2B marketing today. It’s a great way to understand your audience better so you can craft relevant content, targeted campaigns, and effective lead generation programs. Segmentation can be performed in different ways, and the information you gather from this analysis will help identify how best to reach out to your customers. Here are some reasons why it’s an essential part of any successful campaign:
1. Makes You Stay Relevant
The core reason to conduct customer segmentation is because it helps you to be relevant. When you identify what type of business decision maker you’re trying to reach out to, then you can create meaningful content that they want to read and action. Understanding more about your ideal client also gives insight into how to effectively write sales copy, what pain points they have, and how to solve for impactful challenges.
For example, crafting documents or outreach emails that are more likely to resonate and lead to follow through action. If a prospect has a particular interest in real estate investing, then including customer success stories of investment analyses and market trends could provide actionable relevance. This is the key point of differentiation.
2. Tailors Marketing Spend
Another driver before starting your campaign is to optimize marketing efforts, particularly targeting spend on highest-converting content. Without understanding target groups, it’s difficult to remain focused on a message that yields profitable unit economics.
Benchmarking spend will provide clarity and insights to understand where your company stands compared to its competitors and determine which areas to optimize next. This saves your business a lot of time and effort because you’re not wasting resources on irrelevant messages without outcomes.
3. Improves Lead Generation
Lead generation improves the flow in the top line funnel but requires considerate effort to ensure opportunities provided buyer demand and business solutions are qualified. Operating a sales pipeline without indication of profiles for your sales team becomes a blocker to your inbound inbound funnel.
Additional techniques include slipstreaming actions that provides brief actionable guidance such as: case studies, customer success stories, scheduling demos to further along prospects in the funnel. With the proper foresight into approaches, you can generate leads and build relationships with potential clients more effectively.
4. Reduces Customer Churn Risk
When landing a deal, ensuring business expectations set forth are met through ongoing communication channels. However, the risk of churn grows with increasing reality of challenges through adoption or implementation complexity, or the lack of measurable quantitative service delivery metrics. That’s why it’s important to isolate, identify, and inspect who your ideal clients are, the strategic approaches to retain and continue servicing them. Knowing the pschyographics of your customer profiles will allow you to develop and practice retention techniques.
5. Product Development
Understanding customer experience (CX) is crucial to planning product development roadmaps. It lets you know what features users want, and how you can improve the product to meet their immediate and long-term problem scopes. Segmenting audiences will help select solutions through new features or improvements that apply broadly and maximize retention cohorts of customer groups. In the long run, this will lead to higher CSAT scores with better sales-led user experiences.
6. Sales Process Improvement
Profiling B2B clients can provide overarching support to your current sales process. Breaking down the different stages of your sales funnel and intricately knowing how each step works allows you to be in the shoes of the client. From there, identifying ways to improve the process and increase stage-based conversion is a result of clarity and micro-optimization. For instance, leakage and drop-off during demos would typically mean lack of product market fit but changing the way you communicate with prospects could determine new applications and build playbooks to resonate.
7. Personalized Touchpoints
Personalization is another example use case outcome for segmented customer profiles. Through this technique, campaigns can reach prospects based on their interests, socioeconomic background indicating willingness to purchase, location, and other sell-through indicators.
Micro approaches can also create unique landing pages for traffic shaping and testing drop-off rates from website visitors. Therefore building a recursive stream of optimized data that gleams new insight and data into your users.
8. Identify Untapped Audiences
This leads us to our last point, segmentation enables identification of potentially new untapped markets and audiences. If you’re not reaching the right audience, or employees in an organization with decision making authority, you could be missing out on business opportunities. By applying large-scale anomaly and cluster detection models on marketing data such as clickstream events, new patterns for emerging trends and groups emerge that if targeted can lead to growth opportunities.
The Bottom Line
Customer segmentation is an effective approach for any marketer looking to increase conversions and revenue. The key is finding the right type of data that fits your industry, and using it to your advantage. With proper execution, you’ll see positive results across profiles to optimize against engagement, experience, and retention.
This article is published by guest author: Bash Sarmiento. Views and opinions expressed are solely of the writer and do not reflect those of Quant ONE. Content may have been edited to meet our insights-driven publishing guidelines.