How to Unlock B2B Success with Segmentation
Posted by LeadScale on April 12, 2023
Let’s talk segmentation!
In B2B marketing, dividing your audience into smaller groups with similar needs and characteristics is crucial. This categorization is called segmentation. By dividing up your audience, you can personalize your messaging, target specific industries or accounts, and deliver content that resonates with your audience. So, let’s dive in and explore the different types of segmentation in B2B and why they’re essential.
Firmographics: Who Are They?
Firmographic segmentation categorizes businesses based on industry, size, location, and revenue. It helps firms tailor their marketing efforts to specific sectors and companies with particular sizes or revenue. For example, if a firm sells software for accounting, it may only want to target companies in the finance industry, as these are the businesses that are most likely to need their product.
By focusing on these specific segments, businesses can save time, money, and resources that they might have wasted on marketing efforts that do not resonate with their target audience.
According to a LinkedIn publication, “firmographics are the attributes B2B companies use to segment their target market in order to discover their ideal clients”. The article also compares “B2B companies using firmographics in the same way that B2C companies use demographics”.
Firmographic segmentation can help businesses increase their chances of success by “revealing business insights”, “categorizing firms by industry or sector”, “optimizing marketing strategies” and “avoiding lost opportunities”. To top it all off, they included a case study, overviewing how “InsightSquared scaled their outbound sales engine using firm data, signals, and balanced territories”.
Behavior: What Do They Want?
Behavioral segmentation groups businesses according to their behavior. These behaviors could include their purchasing history or engagement with marketing campaigns. For example, firms that sell office supplies may target businesses that recently purchased office furniture. This concept is one that we explored in more detail in our ICP vs. Target Persona blog post.
So, how can you get this information about our potential client’s behavior? Well, there are a few ways. One is to look at their previous purchases and analyze what they’ve bought from you. Whilst this specific recommendation is geared towards product-based companies, behavioral segmentation also has its place in services, including SaaS – as unpacked by Userpilot. You just may have to consider other metrics such as client usage. Another is to track their engagement with your marketing campaigns. For example, look at whether they’ve opened your emails or clicked on any links. You can also use surveys and other feedback tools to gather more information about our clients’ wants! By understanding their behavior, you can create targeted marketing campaigns that are more likely to resonate with them and drive sales.
Personality: What Makes Them Tick?
Psychographic segmentation categorizes businesses based on their values, interests, and personalities. It helps companies to create content and messaging that resonates with their audience. For instance, a firm that sells environmentally friendly products may target businesses prioritizing sustainability.
Technology: What's Their Setup?
Technographic segmentation categorizes businesses according to the technology they use, such as their preferred software or hardware. This type of segmentation helps companies tailor their messaging to businesses with specific technology needs. For example, a firm that sells cybersecurity software may target businesses that use a particular operating system.
Accounts: Who Are They?
Account-based segmentation organizes businesses based on individual accounts rather than characteristics. This type of segmentation is predominantly for larger businesses with complex sales cycles. For example, a firm that sells enterprise software may target specific accounts with personalized marketing campaigns.
Geography: Where Are They?
Geographic segmentation categorizes businesses based on their location. It helps firms target specific regions or countries with messaging tailored to their cultural and linguistic differences. For example, a firm that sells agricultural equipment may target businesses in areas with a high concentration of farms.
Wrapping It Up
In conclusion, segmentation is essential for targeting the right audience and effectively increasing your chances of success. Using different segmentation types, you can personalize your messaging, target specific industries or accounts, and deliver content that resonates with your audience. As a result, companies must identify which segmentation types are most relevant to their goals and audience and tailor their marketing efforts accordingly. So go ahead and segment away!
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