How and Why to Use Segmentation in B2B Marketing
Segmentation is increasingly important for successful B2B marketing, and for marketing in general. That’s because the prevailing trends include an emphasis on personalization, or targeting and customizing the message according to specific recipients or audience groups. Many marketers have noticed a significant impact in their conversion and lead generation metrics when they make personalization a core element of their campaigns.
In order to tailor your communications, you must first divide your audience into specific groups based in certain characteristics.
Data compiled by Circle Research found that 92 percent of B2B marketers segment their target market. The exact approach to implementing segmentation can vary, though. The majority of marketers used what is sometimes called “feature based” segmentation. We also think of it as demographic segmentation. As you can probably guess from that name, this means categorizing leads and customers according to things like their company size or job title.
We strongly recommend taking another approach to segmentation, which we feel is much more effective and offers the promise of a greater return on investment for your efforts. This method involves segmenting based on customer needs or behaviors. This approach acknowledges that fact that not all buyers in the same industry or location have the same needs or interests. Segmenting by behaviors and needs lets you position your messaging to align with the target’s motivations.
While you could compile this information in a variety of ways, such as by conducting your own surveys or market research, that may not even be necessary. Most likely, you already have access to a wealth of customer data providing insights on behavior, interests and similar attributes. Marketing automation and analytics programs now commonly allow you to tap into behavioral data and then use that to guide your segmentation, all in one smooth and efficient process.
Once you have optimized your segmentation process, you can then tailor product offers, pitches and messaging in ways that match those segments. Of course, you will want to continuously monitor your analytics to see how your segmentation system is performing, and revisit or revise as needed.
As a leading B2B marketing agency with expertise in developing online campaigns, we can handle all aspect of personalization and segmentation for your business.