4 May 2021
Market segmentation is a tried-and-tested method that’s been around since the 1950s. However, there’s still some confusion about how to use it in a B2B setting.
B2B market segmentation isn’t quite as clear-cut as other forms: how do you target characteristics of something impersonal, like a business? Despite this, it still has a vital role to play in how you approach B2B marketing.
In this guide, we’re going to look at what B2B customer segmentation involves and how you can do it. When we’ve done that, we’ll also show you the benefits. Read on and find out more!
B2B market segmentation and finding your target businesses
When you conduct B2B market segmentation, what should you look for? You’re going to take a look at other traits that the business has. Let’s take a look at a few of them.
Companies look for products that meet their needs. For instance, if they are looking to cut costs, a service that will help them locate and slash anything that’s wasting their money would be high up their list. If they have a strong brick-and-mortar business and want to expand into e-commerce, they will be interested in web design or SEO consultancy.
The business’ image
While businesses do not have personalities, they have brand images, and the image is a big part of market segmentation. If a company is trying to rebrand or update its brand image, it could need some help. A marketing agency or branding expert could step in to help them.
The company size
Every company has different requirements. If your product or service is designed with enterprise users in mind, a small business that employs 10-20 people won’t have too much use for it. Similarly, if you work with small businesses and can’t scale your product, there’s little reason for a multinational to work with you.
The company’s industry
While there are some products and services that many different businesses can use, others are more specific. Industry sectors and business services will all have their distinct requirements, which you’ll need to consider as part of your segmentation efforts.
The business’ decision-makers
Who makes the decisions at the company, and what is their approach? For instance, if you will end up selling to the CFO, are they the type of person who needs to meet up with agents face-to-face and area deeply relationship-driven?
No two businesses are the same.
Market segmentation in the B2B world is vital. It is an essential part of any marketing strategy and can bring tremendous success to your business and its marketing efforts.
Without it, you will be forced to take a one-size-fits-all approach, leading to a lack of leads and less success. While businesses don’t have personalities in the strictest sense of the word, they do have certain shared traits. It’s up to you to target these.
How to carry out segmentation and its benefits
So now we know how market segmentation works in B2B marketing: how do you do it? The answer lies with data.
You don’t realistically have the time or budget to reach out to thousands of businesses in-person, so use data to make the most of your communication. Our Easybusiness prospecting solution offers you many different criteria that you can use to find the right potential customers that you can then target.
Instead of laboriously writing emails to each customer, you can also communicate faster with mass communication tools that put you in contact with the right people.
Using data like this means less time spent making your initial contact and a better likelihood of success than a cold email. It’s a more efficient way to market.
The benefits of market segmentation
What are the real, tangible benefits that you can experience by using market segmentation? Firstly, market segmentation lets you see where there are the most opportunities, which you can then target. This means that there’s less time for you to spend on fruitless searches for new customers.
It lets you tailor your marketing strategies towards these target customers, saving you money. It can even help you on the development side, as it shows you as yet untapped markets, which your company could then develop a product or service for.
Market segmentation means that you have to spend less time pondering the complexities of your marketing approach. You can optimize the user experience of your website and its content. If you wish to have people contacting your sales reps, in addition to cold contacting them, then you need a user experience that is palatable, professional, and well-researched.
B2B market segmentation is vital.
B2B market segmentation is an essential part of modern marketing. It can help your business across a product or service’s entire development cycle and release, which means better returns for your business and more satisfied customers.
If you’re still wondering what you can do to use B2B market segmentation in your business and as a keystone part of your marketing, we are here to help you. We have years of experience in assisting companies in reaching their full potential, and we’d like to help you become better too.
If you would like to learn more about our products and how we can help you find and convert leads, take a look around our site and talk to our team today.