Rob Ristagno shares a post on the benefits of customer segmentation.
The customer segmentation process begins by identifying all the types of customers who buy from you. The next step is to zero in on the segments that generate the greatest revenue with the least amount of effort.
Once you’ve found those high-value segments, it’s time to start engaging with them. When you focus your sales and marketing efforts on your high-value segments, everything becomes easier.
Your sales cycle shortens because you’re speaking with customers who need what you sell. Your marketing dollars go further because your prospects intuitively understand your value. Even testing and learning new marketing tactics becomes easier—you’re experimenting with your best customers, so you can rest assured that the data you gather from your tests will point you toward other high-value customers in the future.
We’ve seen customer segmentation pay dividends on many occasions. Let’s take a look at a real-life example and then explore how you can begin the process within your organization.
Case Study in Brief: 78 Percent Reduction in Cost Per Lead
We worked with a business that was struggling to get its LinkedIn advertising off the ground. Despite investing $600,000 in a campaign, their efforts turned up zero qualified leads. This was a disheartening result, to say the least.
The good news is that we were able to turn things around with segmentation. We identified the high-value segments and got to the root of what those customers wanted from a company like our clients.
Guided by those insights, we tailored our client’s LinkedIn advertising messaging to prospects who fit their ideal customer personas. Suddenly, things started to shift. Highly qualified leads weren’t scrolling past the ads anymore. They were clicking, calling, and buying.
Key points include:
- Creating segment-specific value propositions
- Focusing on the Right Channel for Your Target Segment
- Marketing spend across channels
Read the full article, Smarter Marketing Spend Through Customer Segmentation, on SterlingWoods.com.
Rob Ristagno interviewed Tom Barry, Managing Partner of GHJ Advisors, on his podcast where they discuss how to scale your business without working overtime.
All professional services firms face the same challenges when trying to scale. The product they sell isn’t an item—it’s their team’s time and expertise. When you have a specific number of employees, each with a finite number of hours in the day, how do you grow your business without demanding more time and energy from employees?
Tom Barry, Managing Partner of GHJ Advisors, who’s been with the accounting firm for nearly 25 years, faces this question regularly. GHJ has built a thriving practice, serving privately-owned businesses and nonprofit organizations within their hometown of Los Angeles and across the country. Like other businesses, they’re always looking to grow.
But they never want that growth to come at the expense of their greatest asset: their team. That’s why Tom and his fellow leaders have honed in on four areas of focus to enable sustainable scaling.
The first is a focus on work/life balance. The firm’s #BeMore motto is about finding growth in ways beyond just doing more work. They want to create a space where team members can be more and nurture all areas of their life: family, self, and firm.
From providing weekly meditation sessions in the office to enabling hybrid work arrangements and flexible, capped hours, the team is constantly looking for new ways to help employees flourish.
Tom also cites investments in tech and AI as important ways to expand capacity. When individuals can automate tedious manual processes and tasks, it frees them up to do more high-value client work. Leadership loves testing new ways to create efficiencies with tech, from using new communication platforms to implementing Salesforce to manage client relationships.
The third lever Tom uses to scale efficiently is outsourcing. We live in an outsourced world, and there are many benefits to finding external partners to help handle workflow. Not only does it create additional capacity for your team, but it also allows you to effectively work around the clock.
Tom says one of GHJ’s outsourcing partners is located in India. The GHJ team in LA makes the most of that time zone difference. They hand tasks off to the folks in India at the end of their workday, and when they wake up and log on the next day, the tasks have been completed overnight.
Finally, Tom talks about the importance of providing value in how you structure your services. When it comes to professional services, it’s not about the hourly rate, it’s about the value derived from that time. He provides the example of a high-profile law firm. Yes, you may pay one of the partners $1,000 an hour, but if they save your company $5 million in the end, isn’t that a bargain?”
Key points include:
- Providing value
- Tiered offerings
Listen to the podcast, Scale Your Professional Services Firm Without Working Overtime, on SterlingWoods.com.
Rob Ristagno shares a podcast with a transcript that illustrates the important role company culture plays in the growth of the company.
David Kinsley didn’t anticipate taking over the family business. In his teenage years, he dreamed about becoming a Wall Street power broker, vacationing in St. Barths, and living a life filled with the finer things.
But when a chronic illness upended his first two years of college, his life changed course. He finally found relief and recovery in Eastern traditions. That led to a spiritual awakening that guided him back to the organization his father had founded.
He joined The Kinsley Group full-time in 1994 and became President 12 years ago. He’s led the organization through 12 straight years of growth and continues to find new, synergistically linked ways to expand the energy solutions company.
However, when asked about the key to the company’s success, he doesn’t point to a business development initiative or specific product. Instead, he says it’s The Kinsley Group’s team of compassionate, emotionally intelligent individuals.
Every employee goes to work each day striving to fulfill the company’s vision statement: To solve the energy infrastructure and environmental issues of the country. This lofty goal, to improve sustainability and provide top-tier service, is what David identifies as their secret sauce.
David says that his vision statement for The Kinsley Group was inspired by Bill Gates’ mission for Microsoft. In the 1970s, the thought of having an at-home computer would have been completely alien, yet Bill Gates proclaimed that his goal was to make that very thing happen. He dreamed bigger than anyone would have thought possible, and today that dream is a reality.
Similarly, David aims to solve big climate problems with innovative energy solutions. The Kinsley Group does this by designing bespoke offerings to tackle major environmental issues. He offers the example of a partnership with a Vermont dairy farm, Cabot Creamery, and Middlebury College.
Key points include:
- Culture, discipline, and accountability
- Team leadership and transparency
- Customer relationships
Read the full article, How Company Culture Influences Organic Growth, on SterlingWoods.com.
Umbrex is pleased to welcome Rob Ristagno with Sterling Woods Group. Rob shows companies how to quickly and profitably grow sales with certainty by using a data-driven market segmentation methodology called Scout X. Now the CEO of the Sterling Woods Group, Ristagno began his career at McKinsey and served as a senior executive at several private equity-owned businesses, including America’s Test Kitchen and Homesite Insurance. He has helped companies big and small, including Visa, Pepsi, and Comcast. His work has been featured on ABC, CBS, FOX, NBC, Forbes, AdWeek, Digiday, and more.
Rob lives in West Hartford, CT, with his wife, Kate, two daughters, Helena and Emilia, and black lab, Royce.