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How to Segment B2B Markets for Growth

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The document discusses how to segment business-to-business (B2B) customers using wallet size and share of wallet metrics. It recommends creating a wallet matrix to analyze customers and prospects, and using segmentation data to develop strategic sales and marketing plans, including defining target markets, allocating sales teams, and setting acquisition and development targets. The goal is to integrate sales and marketing actions using an actionable, data-driven process.

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HOW TO SEGMENT B2 B CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
How do you align your finite resources to the infinite opportunity in B2B? CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
REVENUE versus WALLET Customer Revenue gives an incomplete view of customer value You need Customer & Prospect Wallet to complete the picture CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
SHARE OF Wallet WALLET WALLET Large Wallet % Share Revenue SIZE OF Medium Wallet SHARE OF WALLET Small Wallet This gives you a clearer indication of your market reach, where you can develop customers and where to win new ones. CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
Customer and Prospect WALLET SIZE & SHARE OF WALLET CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
WALLET MATRIX Segment your customers and prospects by wallet and share-of -wallet to identify where you are in relation to the opportunity and where you need to invest. High Retain your loyal customers, provide excellent service levels and defend against Share of wallet competition. But don’t be dependent on just a few. Medium Develop these customers by cross-selling, up-selling products and services and generating Share of Wallet profitable growth Low Acquire these prospects by using the right level of sales engagement, the right marketing Share of Wallet messages and build a solid pipeline of new business Small Medium Large Wallet Wallet Wallet Size Size Size CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
METRICS BY SEGMENT They need to be actionable to reveal the opportunities and areas of corrective actions. This will effectively integrate sales and marketing. Measure these by segment: • New business opportunities • Customer product development • Customer multi-site development • Customer retention activities • Sales coverage efficiency • Sales ratio (inside / outside sales) • Product pricing levels • Bid pipeline : wins and losses • Margin trends • Local vs global opportunities • Product mix trends • Named “must-win” accounts • Re-acquired accounts trend Plus a lot more metrics that will clearly reveal the next actions you need to % take to grow your business and % outsmart your competitors CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
Create a for each of your WALLET TARGET MATRIX MARKETS Total Market Addressable Market TARGET MARKET CUSTOMERS CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
The same segmentation data should drive STRATEGIC DECISIONS CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
Drill down into the data to create Sales Team Plans Growth Target Acquisition Team Development Team CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
Actionable data means an empowered SALES TEAM Sales team coverage Account allocation by wallet Acquisition/Development targets Share of wallet targets Bid pipeline strategy Inside sales : field sales ratio Site development plans CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
Actionable data means results driven MARKETING Product mix development Site development campaigns Quota driven marketing plans Acquisition campaigns Development campaigns Competitive attack Analytical social marketing CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
INTEGRATED EXECUTION requires a clear DATA DRIVEN PROCESS 1 2 3 4 Define your Implement Drive Measure Adressable Actionable Integrated Performance Markets Segmentation Actions and ROI SALES MARKETING CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
Call us now to find out more CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com

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How to Segment B2B Markets for Growth

  • 1. HOW TO SEGMENT B2 B CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 2. How do you align your finite resources to the infinite opportunity in B2B? CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 3. REVENUE versus WALLET Customer Revenue gives an incomplete view of customer value You need Customer & Prospect Wallet to complete the picture CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 4. SHARE OF Wallet WALLET WALLET Large Wallet % Share Revenue SIZE OF Medium Wallet SHARE OF WALLET Small Wallet This gives you a clearer indication of your market reach, where you can develop customers and where to win new ones. CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 5. Customer and Prospect WALLET SIZE & SHARE OF WALLET CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 6. WALLET MATRIX Segment your customers and prospects by wallet and share-of -wallet to identify where you are in relation to the opportunity and where you need to invest. High Retain your loyal customers, provide excellent service levels and defend against Share of wallet competition. But don’t be dependent on just a few. Medium Develop these customers by cross-selling, up-selling products and services and generating Share of Wallet profitable growth Low Acquire these prospects by using the right level of sales engagement, the right marketing Share of Wallet messages and build a solid pipeline of new business Small Medium Large Wallet Wallet Wallet Size Size Size CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 7. METRICS BY SEGMENT They need to be actionable to reveal the opportunities and areas of corrective actions. This will effectively integrate sales and marketing. Measure these by segment: • New business opportunities • Customer product development • Customer multi-site development • Customer retention activities • Sales coverage efficiency • Sales ratio (inside / outside sales) • Product pricing levels • Bid pipeline : wins and losses • Margin trends • Local vs global opportunities • Product mix trends • Named “must-win” accounts • Re-acquired accounts trend Plus a lot more metrics that will clearly reveal the next actions you need to % take to grow your business and % outsmart your competitors CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 8. Create a for each of your WALLET TARGET MATRIX MARKETS Total Market Addressable Market TARGET MARKET CUSTOMERS CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 9. The same segmentation data should drive STRATEGIC DECISIONS CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 10. Drill down into the data to create Sales Team Plans Growth Target Acquisition Team Development Team CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 11. Actionable data means an empowered SALES TEAM Sales team coverage Account allocation by wallet Acquisition/Development targets Share of wallet targets Bid pipeline strategy Inside sales : field sales ratio Site development plans CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 12. Actionable data means results driven MARKETING Product mix development Site development campaigns Quota driven marketing plans Acquisition campaigns Development campaigns Competitive attack Analytical social marketing CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 13. INTEGRATED EXECUTION requires a clear DATA DRIVEN PROCESS 1 2 3 4 Define your Implement Drive Measure Adressable Actionable Integrated Performance Markets Segmentation Actions and ROI SALES MARKETING CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com
  • 14. Call us now to find out more CONTACT US ON +44 8700 990 432 or info@segmetrix.com © Segmetrix 2003-2012. All rights reserved. And let our B2B experts guide you to the right solution for your business www.segmetrix.com