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Mastering Segmentation: A Roadmap to Revenue Success

Feb 21, 2024
Photo of Leena JoshiLeena Joshi
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Success in B2B tech typically hinges on one major question: How do we know what accounts are a good fit for our business? Although it’s a seemingly simple question, the answer is where revenue potential lies. So, how do we get closer to unlocking the answer and figuring out what accounts are a good fit? 

Account scoring and segmentation. 

But, why does segmentation and account scoring matter? Think of your tech product or solution as a restaurant. Not everyone that goes to your restaurant is going to love it. Some might give you a five-star review and be your regulars, and others might not like the type of food you cook. That’s why it’s crucial to identify and serve it to the right palates — your ideal customers. This is where segmentation comes in. The more you understand your customer base, the better you’re able to identify high-potential accounts. From marketing to sales: having that knowledge is going to make a world of difference. 

YOUR UNIVERSE OF ACCOUNTS

Identifying + Addressing the Market

Step one in effectively scoring and segmenting your accounts relies on identifying your universe of accounts (or your addressable market.) Think of this as your complete pool of potential customers who might benefit from your product or service. If you can accurately pinpoint your addressable market — you’ll be able to create a sales and marketing strategy that’s much more efficient. 

If you’re wondering how to get started, here are a few places to look: 

  1. Data. Start gathering and analyzing all the data you can. It should include things like: industry, company size, and geographic information. Because step one is getting insight into your customers, and extract everything you need to know from there first to create your customer base. 

  2. Market research. What trends, pain points, or opportunities can you dive into? Exploring some of these research points will help you fine-tune your understanding of the market. 

  3. Competitive analysis. What strategies and what customer base are your competitors targeting? Now, a word of caution: looking backwards at what your competitors are always doing is a surefire way to fail. You have to be focused on your customers but, seeing how they’re approaching the market will help you understand niches your product might thrive, that maybe you weren’t considering before.

DEFINING YOUR SEGMENT

Okay, now you’re working on identifying your universe of accounts. What comes next? … Defining your segments. 

Segmentation means categorizing your accounts into groups based on their similar characteristics and needs. Defining your segment means personalization, message relevance, product and service alignment, market expansion, and competitive edge. Being able to speak directly to your addressable market holds extreme value. When your prospects see content that speaks to them and their unique problems: it translates to higher conversion rates and streamlined resource allocation for you. Not only will you stand out in a highly competitive environment, but your product will be positioned as a customer-centric solution. 

ACCOUNT SCORING + SEGMENTATION

Now, it’s time to dive into the heart of your account strategy: scoring and prioritization. This process means getting in the weeds; it’s the evaluation of each account within your defined segments that considers data, firmographic, and behavioral information. But why is scoring and segmentation so important? 

  1. Resource optimization. When you take the time to prioritize accounts based on scores, you’re making sure that your resources are allocated where they can yield the highest returns. Which means your team’s time and energy can be channeled towards accounts with the greatest potential, therefore, reducing risk of wasting money and effort.

  2. Streamlined sales process. Prioritization simplifies the sales process. By knowing what accounts have the highest scores, your sales teams can hone in on who’s more likely to convert. All of that knowledge translates to them working smarter and more efficiently. 

  3. Higher conversion rates. The more you engage with accounts that have high scores — the higher likelihood of conversion there will be. When accounts exhibit behaviors and characteristics that align with your product or service, the greater impact you can have by targeting them and knowing how you can help them. 

  4. Personalized outreach. Account scoring gives you the added benefit of tailoring your outreach. Crafting messages that resonate with specific needs, paint points, and preferences fosters a sense of connection with your prospects. It shows that you understand their business and can address their individual needs. 

  5. Revenue growth! The big, audacious goal of any tech company: money. This is where most people get growth wrong. They believe if their product is good for “anyone,” that means it’ll yield higher revenue impact. The opposite is actually true. The more you can niche down and segment your customers so you know the target market: the greater revenue return can follow. Do the work so you can concentrate your work on high-scoring accounts. They’ll be more likely to convert and generate business, bringing you a faster return on investment and opportunities for expansion. 

If you’re just beginning to think about account scoring and segmentation for the first time — it can be daunting. But knowing where (and how) to start is a gamechanger. Dive into the data, organize what you learned into segments or buckets, and prioritize from there. 

CloseFactor is here to help you streamline your process so you know exactly who to target, and when, so your business can win more. Request a demo ->

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