The coronavirus pandemic has created a lot of uncertainty in a very short period of time. Many companies have decided to cut their marketing budgets as a result. On the one hand, this is a prudent financial decision to protect cash flows. But on the other hand, it sets up the company for a revenue shortfall downstream.
Is there a middle ground that allows you to continue marketing with greater confidence in the ROI you’ll achieve? Yes, and it’s called segmentation.
Segmentation is the only free lunch in the marketing world, the only lever that allows you to spend less to make more. Segmentation is not a new concept to anyone, but when’s the last time you checked to see how effective your segmentation strategy is?
In the era of big data, there are low-cost, fast ways to derive a smart segmentation – one that allows you to deliver the right thing to the right person at the right time, and grow your business in the process.
In this article, we will explore some of the common roadblocks companies come up against when segmenting their audience and customers, and how you can overcome them. Plus, we’ll look at how to activate your segmentation once you’ve developed it.
Many companies maintain a list of A-, B-, and C-level accounts based on how much a customer has spent in the past. There is good business value in doing so — you want to make sure you keep your biggest customers happy. But this form of segmentation doesn’t provide any insights into why your biggest customers spend so much with you.
Rob Ristagno, Founder and CEO of the Sterling Woods Group, previously served as a senior executive at several digital media and e-commerce businesses, including as COO of America’s Test Kitchen. Ristagno is passionate about helping others grow near-term revenues by applying data science to uncover and test low-risk, high-reward sales and marketing strategies. Committed to spreading this message, Rob is the author of A Member is Worth a Thousand Visitors and the developer of the Growth Mindset Assessment.