• Sales Process Foundation (Fundamental Segmentation):

BY : Ashraf Osman
Segmentation is a term that means different things to different people. Marketing community interprets segmentation in their own way, while sales community “assumes” they know the customer segments and plunge into the “go getting” mode without understanding the power of segmentation.
Before plunging into the mechanics of any sales process, you need to perform a segmentation exercise. It is more than just a customer segment as many would think, it starts with market segmentation, then account segmentation, then ends with both buyer and user segmentation.
Complete the Market Segmentation phase by answering the following:
1. How big is our market? What is its growth rate?
2. What industry trends are unfolding in our market?
3. What are the needs of the market? How are these changing?
4. What should be our go-to-market strategy for each product/solution?
5. How do my competitors go to market?
6. What are our competitive strengths/weaknesses?
7. What are our opportunities/threats in the market?
PHASE 2 – ACCOUNT SEGMENTATION
Understand which accounts in your market are going to generate the most revenue over the shortest period of time. The value of this phase is to identify the revenue potential by account, product and buyer.
Complete the Account Segmentation phase by answering the following:
1. What is our ideal customer profile (i.e., what defines our ideal prospect and customer)?
2. How does each prospect/customer score relative to our ideal customer profile?
3. What is the potential spend for each prospect/customer?
4. What is the cost to acquire each customer?
5. What is the lifetime value of each customer?
6. What is the potential for each prospect/customer (i.e., how likely is each prospect/customer to buy from us)?
PHASE 3 – BUYER SEGMENTATION
Understand how buyers in your accounts make purchase decisions. The explosion of the Internet, and buyers’ access to anything online, has altered the buying process forever. Without a true understanding of how your buyers make decisions, revenue opportunities will pass you by.
Complete the Buyer Segmentation phase by answering the following:
1. Who are our buyers?
2. What do our buyers care about?
3. How do our buyers make purchase decisions?
4. What do our buyers value when engaging with our team?
5. What must our team be best-in-class in to succeed in our industry?
PHASE 4 – USER SEGMENTATION
Understand the market problems that exist for users in your accounts.
Today, users have an unlimited number of resources to help them do their job. They have a wealth of free advice from the Internet, so competition is fierce. In the end, users now ask themselves which product is right for the job or whether they even need to “hire” a product at all.
Complete the User Segmentation phase by answering the following:
1. Who are our users?
2. What are our users trying to get done?
3. What prevents our users from completing their job?
4. What alternative solutions exists for users to address their needs?
5. What do our users value when engaging with our team?
6. In what must our products be best-in-class in to succeed in our industry?