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.
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).