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The B2B market covers a wide and diverse set of companies. You can tailor your marketing materials and advertising campaigns to appeal to different B2B customers by targeting them through different segments. It may seem complicated, but it’s worth the effort.
Although B2B segmentation might seem more complex than B2C segmentation, it yields significant benefits in understanding your target groups so you can effectively cater to their needs.
There are several advantages of B2B segmentation:
B2B segmentation helps you reach the most interested groups in your products and services, which will lead to more conversions and, in turn, more revenue.
Segmentation allows you to personalize your marketing and advertising campaigns. Personalized campaigns can deliver greater ROI, so your initiatives can have more impact.
Armed with an improved understanding of your target segments, you will find it easier to improve your existing products and create new ones that better meet their needs.
During your segmentation process, you’ll find groups that you haven’t reached in your past efforts. New, niche segments can be lucrative opportunities to broaden your reach with an even more tailored approach.
Customers will reap the benefits of your segmentation efforts, as you’ll deliver new and relevant solutions to their problems. A Usage and attitudes study will help you build strategies based on purchase habits and key drivers. If you tap into these motivators, you realize the benefits of these happy customers coming back for repeat purchases.
As we mentioned, B2B and B2C segmentation are similar but different processes. They both involve identifying target markets, identifying prospective segments, and creating focused campaigns to address each segment’s needs.
But B2B is unique because of the following:
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Before beginning segmentation, analyze your current customer base. Look at why they initially came to your organization, which might include the problems you solve for them, whether they all have similar pain points, and if they all in the same vertical.
With this data, create your ideal customer profile so that you know which characteristics are most important to you. You’ll use this profile and the data from your existing customers to create your B2B segments.
These are five of the most common types of B2B segments:
In B2C markets, we use demographic segmentation based on gender, age, location, and other factors that characterize customers. Businesses use firmographic information such as:
Industry: What is the company’s industry, from retail to manufacturing or transportation?
Location: Is the business located in a small town or a large city?
Size: How many employees work at the company? Are they sizing up or scaling down?