Business marketers rely on segmentation for marketing efficiency and effectiveness. This presentation explains how to segment business markets, the key segmentation variables, how segmentation aids prospecting efforts, how to create personas, and how clean data makes segmentation easier.

1. Segmentation
in Business
Markets
@ZoomInfo The role of data
@RuthPStevens
@DG_Report
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2. About Ruth
▶ Ruth Stevens
▶ Consults on B2B customer
acquisition and retention
▶ Get a free copy of Chapter One of
her new book at
MaximizingLeadGeneration.com.

3. About Don
▶ Don Wynns
▶ Business Development at Zoom
Information
▶ Focuses on product strategy and
strategic partnerships
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4. What is a customer segment?
A group with similar wants and needs.
▶ Distinct from other segments (different
segments have different needs).
▶ Homogeneous within the segment
(common needs).
▶ Responds similarly to market stimulus
▶ Stable enough to market to.
▶ Actionable. Can be reached by
communications and distribution
channels.
▶ Substantial enough to be profitable.

5. Why segment?
▶ Efficient use of limited resources.
▶ Choose the most profitable groups to target.
▶ Develop effective marketing strategies.
▶ Speak to customer needs in a relevant way.
▶ Monitor success and re-segment as
needed.
▶ Continuous improvement.

6. The segmentation process
1. Identifying segments within the target
audience.
2. Selecting target segments.
3. Creating product mix and communications
mix for each target segment.
▶ Positioning products to serve the segment.
▶ Profiling segment to develop impactful messaging.
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7. Segmentation variables for B-to-B
from Bonoma, Shapiro, “How to Segment Industrial Markets, HBR
▶ Demographics ▶ Purchasing approaches
▶ industry, company size, ▶ purchasing function, buyer-
customer location seller relationships,
▶ Operating variables purchasing policies,
purchasing criteria
▶ company technology,
product/brand use ▶ Situational factors
status, customer ▶ urgency of order, product
capabilities application, size of order
▶ Buyers’ personal
characteristics
▶ character, approach

8. Defining your target customers for
prospecting
Characterize your target, by key
variables:
▶ Industry
▶ Company size
▶ Job title/function
▶ Other (but make sure it’s actionable).
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9. Challenges of Data Decay on
Segmentation Initiatives
72% of businesspeople
change one or more
key elements on their
business card each year
What does this mean for you? Your prospect contact data
is likely decaying faster than you are able to update it.
REPORT: Sales & Marketing
Institute: B2B DATA DECAY, HOW
BAD IS IT AND WHAT TO DO!

10. Challenges within your Data Set
Missing Pieces to the Segmentation Puzzle
▶ Industry: Are you pursuing opportunities
consistent with your existing buyers?
▶ Company Size: Need/budget for offer? You can’t
score a lead without reliable “firmographic” data
▶ Titles; Personalized offers resonate. Marketing to
outdated or incorrect titles is expensive & dilutes
the brand
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11. Maximizing Segmentation Value
▶ Successful, multi-channel marketing organizations
commit to ongoing data management and cleansing
initiatives
▶ The inherent decay of B2B data makes an annual
“spring data cleaning” insufficient. Rust never
sleeps, and neither does data degradation.
▶ Marketers and their performance are being measured
more closely than ever - ensure your metrics of
choice are based on real opportunities.
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12. There are solutions…
▶ Find a service oriented data provider that provides a
suite of offerings inclusive of data provisioning and
an ongoing commitment to data hygiene
▶ Buyer Beware – the data provider ecosystem is filled
with false promises and inflated metrics!
▶ Test before you buy - ask these questions:
▶ Is your data provider reputable?
▶ Do they have a track record of success and references?
▶ Do they have a commitment to privacy regulations?
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13. Understand the needs of your target
Sources of insight:
▶ Talk to sales people and customer
service staff
NEEDS: Examples
▶ Primary research
• Solve a problem
▶ Online • Gain recognition
▶ Focus groups or 1:1 interviews • Save time, money
▶ Surveys • Increase productivity
▶ Advisory board
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14. Create “personas”
▶ Persona: A fictional character representing a
target segment.
▶ Aka “profile.”
▶ Useful in crafting relevant messaging and
motivational offers.
Meet Joe. He's owner and CEO of a growing, mid-sized stock
brokerage company. Joe is a gregarious guy, married, with
two children. His wife works, so there’s always more to get
done in the day than they can handle. Joe wears a suit to the
office, but is actually more comfortable in casual clothes. He
drives a roomy 4-door. In the downturn, his company took
quite a hit, so he’s looking for ways to get back on track and
run the business more efficiently, using technology.
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15. Tech influencer persona
Meet Stan. He's database administrator at a large
manufacturing company in suburban Illinois. Stan is single,
and lives in a rental apartment with his two dogs. On
weekends, he favors day hiking and watching his favorite
sports teams on Internet television. He’s a gadget-lover, and
early adopter of consumer electronics. He never wears a suit
to the office. He drives a late-model SUV. Stan appreciates
how people in his company are always asking him for tech
advice. His company understands the value of technology in
gaining a competitive manufacturing edge.
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16. Talking their language
Tech buyer Easy to install. No downtime. End-users won’t
complain. I can look like a hero.
“Spend less.”
Business Easy to use. Will save us time and money. Help
buyer me get the job done. I can look smart.
“Sell more.”

17. Example: Relevant messaging
Tech buyer
Business buyer

18. Summary
▶ Segment audiences by industry, company
size and job title or function.
▶ Research the needs of your most
profitable segments.
▶ Create personas as the basis of crafting
relevant messaging.
▶ Communicate the benefits of value to
each buyer type.

19. Thank you
ruth@ruthstevens.com don@zoominfo.com
@RuthPStevens