EASILY SEGMENT THE MARKET “FOLLOW THE MONEY” TO MAXIMIZE REVENUE
Most everyone agrees “there are clear benefits” on segmenting the market. If you’ve ever spent time sitting with good sales reps – you know there is customer qualification going on. In many cases it’s built on intuitive thoughts, but in other cases it is more systematic and sophisticated. For marketers and executives, a broader market segmentation approach is needed. Out of necessity, there often are just not enough company resources to deal with every opportunity. So you place your bets where you think you have the best opportunities. We all do it.
CEVOH has participated in some highly sophisticated market segmentation approaches. These are powerful and help complete the story for disparate groups inside a big organization. A great market segmentation approach will align the company around the best current and future customers. This will help facilitate more effective loyalty programs and prospecting campaigns. The clarity on identifying the highest opportunity segments and psychographic or persona profiles for these can be a very valuable experience.
Of course not every organization can afford the time and resources needed to complete a benchmark marketing segmentation study. But since prioritization of the market is always an important exercise, there are lower cost options. One example (depicted in the infographic above) is to “follow the money” and identify the best revenue opportunities.
In the example above, done for the media sector, B2B spending with digital media advertising was identified and bracketed into product categories. The approach above was constructed using a variety of third party data, government information and CEVOH proprietary analytics. The resulting feedback on this infographic is that there are so many businesses in the bottom tier spending very little money on digital advertising. This finding has helped to clarify where the sweet spot opportunities are for future growth and what product set is optimal to reach these segments. The opportunity identified is to target the businesses in the higher tiers – unless your approach is truly an automated and low cost customer engagement model.
Surely there is more information and questions that can be derived from this analysis, but the infographic serves to greatly simplify the story. “Follow the money”, and organize your resources and products to best fit the segments you want to own.