The document discusses customer segmentation strategies to enhance growth for a B2B e-commerce marketplace facing stagnation. It outlines a three-step framework for analysis focusing on industry, company, and individual factors that influence purchasing behavior. Key suggestions include identifying target customers, understanding buying motivations, and improving marketing and sales processes to drive revenue and supplier engagement.

1. SEGMENTING CUSTOMERS:
HOW TO DO IT QUICKLY AND
EFFECTIVELY
Dutta Satadip | Brent Harrison

2. Why are we not growing
as fast as…?

3. Dutta Satadip
 Director of Products, MarketTools
 Leadership roles in Product Management, Marketing,
Consulting and Engineering
 10 + different enterprise software products with
over 20+ end to end product lifecycles
 Global business development & execution in
Europe (Czech Republic, Italy, Spain, UK, Germany)
& Asia ( India, Viet Nam, Israel)
 MBA, Haas School of Business, UC Berkeley with background in Computer
Science
 President, Board of Directors, Hemophilia Foundation of
Northern California
 Senior Manager, Application Modernization Products, HP
 Avid traveler, over 25 countries with aspirations to
double that number

4. Brent Harrison
 Founder & President, SmokeJumper Strategy
 Over 30 projects in Marketing Strategy, Product Innovation &
Online Marketing
 B2B: Ariba, Emerson, MerchantCircle, VeriSign
 B2C: MyWire, Veoh, Yahoo!, Yakima
 Biotech: BD Biosciences
 Development: M7 (BEA)
 Education: McGraw-Hill, SchoolLoop, SunGard Public Sector
 Founder, Savvy Cellar Wines & Organic Wine Review
 Vice President, Marketing @ Apple
 Executive Director & GM @ AOL and Netscape
 “Smokejumper”, parachuting into forest fires

5. Why are we not growing
as fast as…?

6. Outline
Present a thinking framework
1
Put in the context of a case
2
Apply the framework to solve the case
3

7. Thriving Products Segmentation
Approach
Industry Company Individual
Size Purchase Motivation
Substitute Process Behavior
Sales Cycle People Demographic

8. Case: B2B Software Company
 B2B eCommerce marketplace:
 Companies post supply opportunities
 Receive bids
 Issue purchase orders
 Complete payment cycles
 Situation: Not growing as rapidly as planned
 Desired Outcomes:
 Attract more suppliers
 Encourage more transactions
 Develop revenue-producing supplier programs
Source: Smokejumper Strategy

9. Why are we not growing as fast as…?
What trends are we missing? Industry
What type of organizations
Company
should we target?
Who are the “real” buyers? Individuals

10. 3 Step Industry Analysis
Size Substitutes Sale Cycles
• Overall Spending • Regulations • Spending triggers
• Adoption Maturity • Local Context • Sales competencies

11. Example: Improvements by Job Function
What capabilities would improve your Mktg /
company's performance? Sales Finance Ops Admin IT
Improving accuracy of customers 'PO's 2.70 2.68 2.49 2.92 3.00
Marketing to customers 2.82 2.07 2.41 3.15 2.53
Invoice / payment status 2.35 2.97 2.61 2.88 2.54
Collaborating with customers 2.62 2.44 2.45 2.54 2.71
Targeting buying decision-makers 2.81 1.97 2.35 2.73 2.27
Adopting best practices 2.51 1.91 2.41 2.85 2.65
Improving merchandising 2.48 1.92 2.35 2.92 2.33
Invoicing 2.28 2.82 2.31 2.48 2.39
1 = Not at All 4 = Dramatically Improve
Note: This could be sourced from or developed by secondary or primary research.
Source: Smokejumper Strategy

12. 3 Step Company Analysis
Purchasing Process People
• Cost/innovation focus • Decision making • Organization culture
• Business goals • Agile v/s Structured • Risk seeking/avoiding

13. Example: Mktg/Sales vs. Finance
Marketing / Sales Finance
Measured on cash flow
Measured on sales growth
management
Focused on challenges associated Focused on getting paid according
with generating revenue to terms
Believes EC could improve
Believes EC could improve visibility
marketing to customers; targeting
into invoice/payment status; and
decision-makers; merchandising;
invoicing thru one common system
and adoption of EC best practices
Source: Smokejumper Strategy

14. 3 Step Individual Analysis
Demographic Behavior Personal Success
• Age/ Generation • Attitude towards product • Social status
• Education • Awareness • Career progression

15. Example: Attitudinal/Behavioral
Segmentation
Revenue Reaper (41%) Lead Needy
Increasing revenue (11%)
Generating awareness
& leads
Margin Makers (16%)
Revenue & cost Fulfillment Fiend
(9%)
Cost Boss (23%) Processing & Fulfillment
Managing costs & investment decisions
Note: Placement of companies based on primary motivation; many respondents have multiple motivators; segments are
mutually exclusive - each company is plotted in one and only one segment.
Source: Smokejumper Strategy

16. Why are we not growing as fast as…?
Outcomes
Prioritize Drive Prioritize
product targeted among
backlogs marketing segments

17. Key Takeaways
Industry Company Individual
Size Purchase Motivation
Substitute Process Behavior
Sales Cycle People Demographic
Identify what
Identify what to
you should
focus on
ignore

18. Contact
Dutta Satadip Brent Harrison
dutta@mba.berkeley.edu brent@smokejumperstrategy.com
408.828.2413 650.868.0212
twitter @duttas twitter @smokejumper
thrivingproducts.ning.com smokejumperstrategy.com/blog
linkedin.com/in/duttas linkedin.com/in/smokejumperstrategy
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