Sales Management

Valerio Ronci

International Business Development - Anno 2016

B2B markets: 3 Segmentation

tips

B2B markets: 3 Segmentation tips

3. JOB LEVEL

2. COMPANY

DEPARTMENT

1. COMPANY SIZE

1Only few B2B companies can sell to companies of every size. You need to segment size into ranges that are meaningful.

A product can be used by a department but the decision makers may work in another department.

2

3A C-level, VP, Director… may be the decision makers but it may be better to approach people with less seniority.

SummarySegmentation is the foundation of your ideal customer profile and enables you to build a target account list based on data. This is why segmentation is very important for both Marketers and Sales professionals.

Knowing whom not to target - for examples - is at least as important as knowing whom to target. It prevents you from wasting money, time and resources targeting non-receptive leads.

Let’s have a look at 3 simple tips for an effective segmentation in a B2B environment.

1. Company sizeOnly few B2B companies can sell to companies of every size. By using annual revenue or number of employees we can target companies that are more likely to do business with us. Let’s say that you are a medium sized company manufacturing high-end Kitchen equipment for domestic use. Even though we have a great sales team you are not structured to sell your products to Big Retail chains because such large sized companies require dedicated Key Account Managers that you do not have.Trying to sell to these companies could be a waste of resources because after signing them up you would find yourself incapable to fulfill their requirements.Segment size into ranges such as €100-€300 million so that ranges can be meaningful.

2. Company departmentWhen it comes to identifying the right person to approach, it is crucial to understand which department you have to target.

We may sell a product that it is used by people that are not the decision makers but they can influence the final decision and may be then the best people to start the conversation with. For example, it often happens that the Sales department bring new products to the attention of Buyers. So the Buying department makes the final decision but Sales managers can activate the buying process and then influence it.

Job level segmentation reveals the role a lead plays in the buying process. The real decision maker could be a C-level, a General Manager, a Director etc… but these people may be not the right people to approach first. People with less seniority could be a better choice because Senior managers empower them to select the more interesting products before getting involved into the buying process.

3. Job level