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.
Barry Horwitz shares a post to help you define and improve your business model.
According to Mark Johnson, co-founder of Innosight, a business model is simply this: “The way a business creates and delivers value for a customer while also capturing value for itself in a repeatable way.” It’s a straightforward concept, but important enough that academics and consultants alike talk about it frequently.
For example, in my work with entrepreneurs — both established and “would-be” (i.e., students at the Questrom School of Business at Boston University) — I often leverage something called the “Business Model Canvas,” created by training firm Strategyzer. This framework is useful in ensuring that all the relevant elements and their interconnections are considered before going to market.
The interconnections are particularly critical, since changes in one can wreak havoc on the rest.
Consider digital music. Apple’s iTunes disrupted the music industry by enabling downloads of individual songs at only 99c each, upending a once fabulously profitable record industry and forever changing how music was purchased. But it wasn’t long after that when the next tech innovation arrived — cellular broadband — which allowed for music streaming (via Spotify and others), changing the game once again, as music ownership was eclipsed by an unlimited library and a monthly subscription.
Note that renting rather than owning is not, in itself, new; people have had the choice of leasing cars instead of buying them for decades, as one example. But the application of the “rent rather than own” business model to music, was… enough to disrupt an entire industry.
Key points include:
- Customer segmentation
- Pricing and cost
- Changing the business model
Read the full article, What’s Your Business Model, on HorwitzandCo.com.
Umbrex is pleased to welcome Murat Çeliksoydan with Valueplus Consulting. Murat is currently working as a partner in Valueplus Consulting, a boutique consulting firm focused on supply chain consulting, working capital management and transformation projects. Murat has more than 10 years of experience in supply chain management, operation model design, process management, channel strategy, customer segmentation and value proposition design. He has experience in production, consumer products and retail sectors.
He has worked in in Middle East region through his career in BCG around 1.5 years and currently, he is living in Istanbul, Turkey with his wife and new born twins.
Hugo Bernier shares his expertise in technology to explain how gateway services work and how to install one.
When using cloud-based services like Office 365 and the Power Platform, it can be challenging to integrate with your on-premises resources. All of a sudden, your on-premises databases, APIs, file shares, and even your existing on-premises SharePoint infrastructure become impossible to reach. At least, not without making some giant holes in your firewall.
At our recent Toronto Citizen Developer User Group meeting, my good friend Luis Duran demonstrated how to use the on-premises data gateway to access a custom web API running on his workstation from Power Automate.
He had rehearsed the demo earlier that day from our offices. Still, he had changed many environmental variables by moving his demo to our meetup venue. Luis ran a web API from his workstation, over a different network (the guest wifi at the Microsoft office), using a new IP address.
Let’s say that if his demo didn’t work, no one would have blamed him. Heck, I tried to run a web API project using a static IP address on my workstation earlier in the day, and I had issues getting it to work.
But the demo worked!
Areas covered in this article include:
- What is the on-premises data gateway
- How the data gateway works
- What the requirements are
- How to install a gateway
- How to use a gateway connection
Read the full article, Accessing Your On-Premises Data Using the On-Premises Data Gateway, on the Tahoe Ninja’s website.