target market

target market

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.