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In this video, we will cover how to yield the best results from segmentation.
Market segmentation allows you to narrow your marketing efforts to focus your budget and resources for the best return. Once you have an understanding of each market segment, you can then be super-specific with any personalized messaging as you make your approach.
For example, if you travel to attend trade shows that are locations specific or specialist industries event, then with segmentation you should look at the language that you use in advertising copy to ensure the correct industry jargon and terminology is included, to position yourselves as market leaders in that field.
By being specific to industry and location, your conversion rates should see a significant increase and the perception of your brand in the market place will be improved.
Different market segmentation strategies
One of the easiest ways to segment your marketplace is by location, allowing you to change language, imagery and pricing to be specific to that audience. Used well this can yield fantastic results, with your budget focussed on the highest value opportunities globally.
By tailoring your messaging, you will increase your relevancy to that audience.
For example, say you offer a CRM SaaS solution. Your target market is global, and someone in the USA receives a communication from you, adding something along the lines of “#1 CRM Tool in America” is a simple change, but it will have a positive impact on relevance for your audience.
The next step would be to include location specific case studies or business names. Someone outside of the USA may not recognise the brand name “Target” so as a case study, it may not help in other markets.
Segmentation by interest, in business is probably aimed more at B2C companies, as you may know more about what your customers enjoy and their hobbies. B2B companies can still utilize this though – you are still selling to an individual.
You could segment by interests in their work life, for instance a HR Manager would be a lot more receptive to an article about the “Top trends in hiring”, over an article about how your solution saves money on sales opportunities.
Product use case
The number of organizations utilizing Product use segmentation is on the rise but is still relatively low – as you do need to fully understand your customers and what motivates them. This could be a quick-win way for your business to get ahead of the curve.
By segmenting by use case, you are accepting that your whole solution may not be for everyone and this narrows your markets. Once you have the data, identify the segments that will bring in the highest return and focus on marketing only the relevant features or functions of your product to each.
By identifying the product use cases you are directly addressing your customers pain points, and then you can address these in your marketing strategy for each.
Relationship with the business
By identifying markets that already have a relationship with your business, you can skip the “awareness” step of the buying decision and focus on “consideration” and “decision”.
By remarketing to audiences that may have previously interacted with your business you can segment the message you deliver to them based on where they are in the sales cycle.
For instance, someone who has seen a demonstration of how your SaaS solution can benefit their business but opted to bot begin a trial of your software, may be looking at some of your competitors to see how the product stacks up.
You could remarket to them with examples of success stories to build trust, or even offer them an extended free trial so that they can explore the product fully.
Being industry specific will allow you to alter your acquisition costs based on how profitable each industry is for your business.
Focusing spend predominantly in the areas you know you yield the biggest return, or even where your retention rates are highest just makes sense.
Segmenting your audience by revenue can be tricky as you will need to understand your prospects turnover.
One you have cracked that, you can market to the companies as per their needs.
For example, a larger enterprise company with a turnover $100 million would likely be looking for system or product that seamlessly integrates with a system they already use.
Whereas a small to medium sized business would be looking for a cheaper offering, or even parts of your solution so you can tailor you messaging to meet their requirements.
I hope you found this video helpful. Please feel free to comment below the video should you have any questions or requests for future content, and one of the team will get back to you.
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