Customer Segmentation in B2B Industry !!!
Are you good at spotting the ideal customer for your business? Do you understand their actual needs or how your product/service would improve their businesses?
Well, let me explain why you need psychographic segmentation.
As you send an email or piece of collateral to a dozen of different prospects, the same sales pitch could appeal to each of your prospects in a different fashion.
You can attract maximum customer interest by understanding and satisfying your customer requirements. However, the client’s needs are different and constantly evolving. Therefore, you may need different approaches to satisfying them. In this situation, you need to take a decision that lets you intercept maximum leads in your sales funnel.
A good psychographic segmentation process lets your customers identify, understand and meet the different requirements.
Why is segmentation important for marketing?
The main reason marketing team segregates its customer base into identifiable segments is to create a custom marketing mix for the specific group.
For example – your company launched an expensive Ayurvedic shampoo for hair loss prevention. Apparently, not everyone would purchase this expensive organic product. Hence, you need to identify your potential customers. And in marketing terminology, the process of identifying your target customers is called ‘customer segmentation’.
In a nutshell, customer segmentation helps you reach out to your target audience, thus effectively increasing the productivity of your marketing team. It also helps you communicate the right message to your customers.
Developing a customer segmentation strategy for B2B Industry
With the above example, it’s very easy to understand the importance of customer segmentation. The B2B market is characterized by a number of factors that sets it apart from the B2C market.
Let’s look into some of the segmentation challenges faced by B2B marketers –
- B2B buyers are more ‘rational’ than B2C buyers. B2C buyers tend to purchase what they want, whereas, B2B buyers generally purchase what they need. Logically, you can spend $3,000 on a stylish leather jacket that is less warm than a similar-looking $300 jacket next-door but can never make a similar decision in your workplace.
- B2B products are often more complex. So, sometimes it’s difficult to figure out who needs a particular service or product.
- Personal relationships are more important in B2B organizations. As in B2B markets, customers’ loyalty is more important than any other things, marketers usually focus on making one-to-one conversation with clients, rather segregating them into different segments.
- Usually, B2B markets have long-term purchase periods. This means that the B2B vertical needs to focus on more customer retention and relationship-building. Comparatively, the B2C marketers usually deal with shorter buying cycles and a frequently changing customer’s faces.
While considering these different aspects, you need to tailor a different customer segmentation strategy for the B2B industry. This makes it really challenging.
On the positive side, it is challenging and it presents you with a genuine opportunity to convert customers. Instead of creating trivial customer segments, B2B businesses should focus on building customer-based segments.
How to create psychographic segmentation in your B2B customer base?
Most of the marketers use some degree of segmentation; at least they follow a mental model while creating a segmentation strategy. This could be easily a tangible and measurable strategy.
Demographic information can easily be acquired, as it includes numeric and comprehensive data like age, gender, income level, education level, occupation and so on.
But, sometimes psychographic segmentation works better than any other segmentation.
In Psychographic, you are identifying the passionate behaviour that is associated with an individual customer. This helps you determine the reasons that led to a particular purchase.
Apparently, it’s more difficult to determine to segment based on age or sex. However, it’s more relevant and provides more insights for B2B businesses.
In order to create psychographic segmentation, you need to analyze the purchase history, personal and professional lives of your clients. Also, social media interaction is a valuable source to determine people’s likes and dislikes.
Once you get all the data related to your clients, you can arrange it with your marketing CRM system. The CRM dashboard can effectively showcase your data in a well-organized form for the b2b industry.
With each purchase in a buyer’s journey, there is an emotional component. If you identify the factors, predominating your buyer’s decision, you can easily create a separate segment for it. The data insights will help you create these segmentations.
How to use psychographic segmentation at work?
With your B2B industry customer segments defined, you can send personalized emails that better speak to the reasons, why people need your product or service. With the integrated Gmail and Outlook, your marketing CRM software can effectively leverage your email automation system.
Combining the psychographic information with other variables such as behavioural information, demographic data, and geographical details would provide you with more powerful data points. It’s quite helpful in generating relevant content, targeting the right segment for your product or service.
It is apparently clear that the result of customer segmentation will effectively impact a company’s ROI. With increasing competition in the B2B industry, the demand for integrated marketing software is rising gradually.