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Wednesday, 10 December 2014 00:00

How to Segment Your Market and Increase B2B Conversions by 355%

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Do you want to increase your conversion rates by 355%? Of course you do.

What’s the secret? Well, according to a study by Jupiter Research, companies that segment their databases increase their conversion rates on average by 355%.

It makes sense.

Since your prospects and clients don’t all have the same problems and needs, you can’t expect a broad message to appeal to your entire database. To create a robust, successful marketing campaign you need to provide content and messaging that’s relevant. You need to segment your list so you can, for example, send targeted emails and structure tailored telemarketing programs.

Getting Over the Initial Hurdle

You’d think all business managers would be clamoring to slice and dice their list into micro-segments for marketing campaigns. But they’re not doing this! The same Jupiter Research study found that only 11% of companies are using a segmentation strategy. Why are 89% of businesses missing the boat? 

That’s simple. It’s because nothing worthwhile is ever easy. That oft-cited quote is an accurate reflection of B2B segmentation. B2B segmentation is more challenging than B2C segmentation because:

  • Products tend to be complicated and, thus, require more tailored approaches
  • Decision making is complex and often requires multiple purchase influencers
  • Buying cycles are long
  • It’s harder to define distinct behavioral and needs-based segments
  • Audiences are smaller which requires micro-campaigns
  • Most companies have not allocated enough resources to make segmentation possible.

So it’s difficult. But if companies calculated the return on investment (ROI) of a 355% increase in conversion rates, most would discover that the hard work on segmentation was worthwhile.

Start Small

How do you launch a segmentation initiative? Start small, measure success and move incrementally towards optimal segmentation. While you may eventually want to segment based on demographics, buyer behavior, and needs, you can start with a simple demographic segmentation.

For example, look for where you see differences in behavior based on company demographics—by sales revenues, geographic location or industry. Perhaps companies with revenues over $50 million are more likely to be interested in all the bells and whistles of an SaaS solution. Those with revenues less than $25 million are happy with a simpler solution at a lower cost. You can also create different messaging based on the role or level of the contact.

In this situation, there’s no reason to expound on problems that don’t plague smaller companies in content you send to them. Stick to what’s relevant to them. As you become comfortable with initial segmentation, further divide your audience according to their needs or based on their actions. You’ll discover that the more granular your data, the better you’ll be able to segment to deliver results.

How We Segment Our List

Here at 3D2B, we look at the content a lead downloads to determine the initial emails to send out. Then, as we develop a relationship, we ask more questions to assess the information that they would like to receive.

This process puts the prospect in control. So, rather than feeling spammed when an email from us arrives, they click to open it and learn more. We’ve found that these targeted email campaigns have increased engagement and results.

To learn more about how to segment your market, call us now at +1 718-709-0900 (Americas) / +39 06-978446-60 (EMEA).