Market segmentation is the art and science of identifying smaller groups in your Target Account List based on similar characteristics. The better you get at defining audiences around your best opportunities and moving them through the account journey, the better your business outcomes.
Once you settle on an audience segmentation approach, put a critical eye to it. You can use this checklist to determine the viability of each segment.
We recommend starting with just two or three targeted segments. But if you are in a large, complex Marketing department, then you may need more. For more best practices on how to build a segmentation strategy, check out The Market Segmentation Playbook. And attend our live master class on December 9!
If the answer to any of the questions is no, revisit your strategy until you arrive at a model where each segment is uniquely differentiated and includes your best opportunities.
1. Are the segments different in meaningful ways?
2. Are the segments large enough? (Have you segmented a segment too thinly?)
3. Does each of your target accounts clearly fall into one segment or another?
4. Do you have enough bandwidth to tackle all of the accounts in the segments? (Are they manageable?)
5. Do the segments you’ve chosen represent your best opportunities?
6. Are your solutions for them uniquely differentiated from the competition?
7. Can you make significant and profitable inroads into the segments?
8. Do the segments represent growth opportunities?
9. Are they the industries, categories, or companies that will expand over time?
10. Do you need to do more research on the key pain points and challenges for your chosen segments? (Likely, the answer is yes. And that’s a healthy response. Stay abreast of current industry trends to demonstrate you know and care about what your customers care about, and regularly monitor the intent of the buying team in your target accounts.)
11. Have you identified the goals, needs, and motivations among buyers in each of your segments and how your solutions help them to achieve them?
12. Is there proof that your offering is a good fit for your chosen segments? Do you already have customers in the segments on which you’ve chosen to focus?
13. Have you run your segmentation strategy past Sales leadership?
14. Does leadership agree that these segments represent the best opportunities for your business?
15. Do you have a process in place for iterating or updating your segmentation strategy on a regular basis?
Once you’ve built your audience segments, you can rank them from high to low priority and focus on building personalized resources based on their level of priority. Lower priority accounts might be great for one-to-few or one-to-many personalized campaigns, while one-to-one Marketing methods can be reserved for your highest priority accounts.
Check out The Market Segmentation Playbook. It’s the definitive guide on how to target your best opportunities so they move through the pipeline faster.