Top 5 Reasons to use Segmentation


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There are now more reasons than ever to invest in segmentation.

Through segmentation a marketer identifies groups of customers that are ranked by their sales potential and can be classified based on any number of criteria. By leveraging this intelligence, marketers can profile their ideal customer and forecast outcomes for marketing programs.

Traditionally, B2B marketers have segmented based on firmographic criteria such as company size, geography and industry. Consultants such as MarketBridge and TCG recommend digging deeper and beyond firmographics to uncover more predictive criteria.

B2B marketers face challenges in mining their databases for accurate profiling criteria so segmenting the database may be an arduous exercise.

Here are the top five reasons for marketers to segment:

Higher Conversion to Revenue

By focusing on those segments with the highest potential, marketers can generate higher conversion rates.

Lower List & Media Costs

In understanding what the best prospects look like, marketers can rent lists and purchase media in a much more targeted fashion. There is less wastage on targeting prospects outside the ‘sweet spot’.

Lower Downstream Costs

A responder to a marketing program is not always a good thing. It costs organizations to qualify and sell to prospects who respond. By only inviting those prospects with a high potential to convert, a marketer can generate higher quality leads in lower numbers, reducing the cost of sale.

Lower risk of social media flaming

Prospects are equipped with formidable firepower. Aggravate a prospect and a marketer risks provoking a negative reaction flamed through social media and social networks. Word travels fast and wide.

Lower risk of opt-out

Why risk losing a B2B buyer through a mis-targeted message? With CAN-SPAM and Do-Not-Call lists, it is easier for a buyer to opt-out permanently from your marketing. The wrong message to the right buyer could provoke an unintended opt-out. In other instances, messaging may be relevant but frequency of delivery is too high. Or the level of personalization is too generic and does not resonate to prospects. Segmentation helps improve the accuracy of marketing so that the right messages are sent to the right buyers at the right time.

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Republished with author's permission from original post.

Robert Lesser
I am the founder and President of Direct Impact Marketing, a provider of a sales productivity solution and consulting services to technology organizations. Prior to stepping out as an entrepreneur, I held a number of marketing positions at Dell, IBM, Reckitt Benckiser and Loblaw Companies.


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