Marketing Strategy

4 Reasons to Review your Marketing Segmentation

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Marketing Segmentation has changed. What used to be a simple task of filtering your database by a standard set of criteria has evolved. Smart marketers now use technology coupled with data to
target their audience. Why? To target based on needs, behaviour and propensity to buy.

Executed properly, market segmentation and micro segmentation is a powerful way to
create a strong competitive advantage which will impact both your marketing results and your revenue.  

Ask any marketing manager what segmentation is and they will most likely tell you
it’s “the process of dividing an overall market into key customer subsets, or segments, whose members share
similar characteristics or needs – for improved targeting.”

Simple. Right? Yes and no.

Used as the basis of your strategic marketing planning, segmentation makes your
marketing more effective. This is because it enables you to send marketing messages that are relevant and
needed. Then, by adding marketing automation, your messages are sent at exactly the right time.

However, not all marketing segmentation is in-depth enough to deliver results. Many
marketers only target by sector or job role – this tends to be the case in most of the businesses that I meet.
This is usually the result of not investing time to keep databases up-to-date. It can also be due to the lack of
a CRM system that is structured in a way that enables marketers to target based on different parameters.

But marketing can be far more effective if you gather more data for deeper
segmentation. Here are the reasons why, if you have not already, you need to review your approach to both
managing your data and segmentation.

Reason 1: Improved ROI

Targeting high value customers and prospects enables you to focus your marketing
spend and sales efforts on high propensity-to-buy accounts, maximizing your ROI.  

We all know that some customers spend more than others. It seems very logical to rank
accounts and prospects based on best to worst revenue potential.  However, there’s no need to overcomplicate
things. Start with a simple “High Value” or “Low Value” indicator, then target the high value accounts and
prospects first.  

High value can be determined by a number of factors. This is a great task for the
sales team to undertake and SBI has a very useful
account segmentation tool that you can
use.  The more information you can provide to your marketing team, the more support they can give you with lead
generation and account-based marketing tactics to help you meet revenue targets.

Reason 2: GDPR

The enforcement of GDPR earlier in the year means that you require lawful grounds for
processing data. If you rely on consent as the basis for contacting your prospects list, granular consent is a
great way to grow your opt-in lists.  

Granular simply means a more specific topic. Instead of asking people to opt-in to
your mailing list, give them the opportunity to opt-in to various topics, like we do on the
KG Moore opt-in
list.
Having separate topics makes it easier for people to choose
what they feel is of interest to them.

GDPR also requires you to show when someone gave consent. By having a granular
opt-in, it makes it easier to be perfectly clear about what someone was choosing to receive. If you still need
help with ensuring your marketing is GDPR compliant, download our
#SmartMarketing GDPR Action
Plan.

Reason 3: Relevance

If you sell a product or service that is highly specialised, your messaging is
automatically very relevant to your audience. For example, If you sell dentistry equipment, you will spend your
time selling to dentists.

However, for most businesses, there are a number of markets you can sell into. But
should you? How do you make the message relevant to everyone? How might their needs vary?

Let’s use KG Moore as an example. We help companies develop a marketing strategy. Any business could
use our services. We could target everyone.

But we don’t.

We target businesses that want to make the next leap in growth. They already know
they need a marketing strategy to support their revenue objectives, so we don’t have to explain why it’s
important. They will have budget for marketing. They will also have certain needs that fit well with our
services.

There are a few more factors we use in our targeting, but we’ll hold those close to
our chest. I think you get the point we are making 🙂

Reason 4: More Leads

Everyone wants to know how to generate more leads. There are plenty of tactics that
you can use to drive more traffic and get the phone ringing. But don’t forget the basics – the data you collect
in any lead form or inbound call.  

The better your data collection, the better your segmentation. This gives you the
ability to create better marketing, released at the right time – resulting in more lead generation.

Once you get the basics working well, you can then move into micro segmentation which
drives even greater results. We’ll explain micro segmentation in another blog but, for now, take the time to
review how you capture data into your CRM. Then, review how you segment and target.

I guarantee you’ll find some obvious improvements you can make.

If you require any support with your marketing or guidance on how to improve your marketing results, get in touch.
Tell us your marketing challenges.

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