B2B customer segmentation plays a vital role in B2B marketing and production. The B2B sellers who can comprehend how to group customers strategically can enhance their customer services, marketing campaigns and customers engagement really well.
Our article today will instruct three mind-blowing approaches to B2B customers segmentations which are trusted by thousands of B2B business runners around the world.
Awesome Methods To B2B Customer Segmentation
Firmographic method is defining B2B customer segmentation based on their demographic characteristics including business, industry, location, business status, market performance and annual revenue. The connection of those elements can help the B2B business runners depict a picture of customer persona and then establish suitable customer engagement programs instead of spending a lot of money on running paid ads. This B2B customers segmentation is a robust tool for your B2B business when finding ideas for demographic-based articles, events.
This second B2B customers segmentation method focuses on customers’ needs regardless of demographic characteristics. It’s called the demand method. The market researchers will try to find out what features customers really need, what makes them choose our products among a lot of competitors to develop and add necessary characteristics of goods and services, marketing programs and so on.
One of the most common ways to figure out the needs of their target customers is by observing their behavior on your eCommerce website. While the world has become more convenient, a lot of businesses started to use tracking tools to help them record their on-site customers’ behaviors, exporting data to SpreadSheet for further analysis and grouping.
For example, you saw that a lot of young customers choose colorful raincoats over dark ones, you may need to store and sell more multi-color ones to get the expected revenues. Moreover, through their behaviors, you can realize the pain points: what makes them hesitate to buy and then improve or motivate them to buy via marketing strategies.
Tier placement is a B2B customer segmentation method that tries to find the level of compatibility between the customers (in terms of value, potential and performance) and the company’s target. To group customers by this method, there are three questions you need to answer:
- How much revenue can customers bring to your company?
- How much are they willing to spend on your products?
- Are they loyal?
After collecting information and putting it in each question, you can design a tower to remark the possibility of whether they are suitable for your products, your company value and how they fit the long-term goal. Then, you can come up with different strategies for each tier. For example, you realize that these groups of customers are willing to invest a huge amount of money in your products. The strategies they should focus on are promotion programs, membership benefits and other special deals to nurture and maintain this lucrative relationship.
Defining B2B customer segmentation become more effective and transparent when you utilize one of the three methods above. We hope that you have comprehended each approach and avoided mistakes when grouping your customers.