After the class reading of Segmentation and Targeting by Sunil Gupta I found that there is work to be done within my company around the basis of who our customer persona is and being able to segment those prospects accordingly: There are gaps in our marketing segmentation.
Here is some high-level background on my company as to why I think this way:
For the past 35 years, we have focused our attention on the enterprise market, those who generate $250 million and up. We have dominated that space, however, within the last five years we saw an increased demand for those companies in the middle-market and below, companies with an annual revenue of $50-$250 million and we did not know what to do with their business. Our solution and pricing was geared toward the global multinationals but the same solution was needed now for emerging companies $250 and below.
Piggybacking off of one of my previous posts, and going back to the theme of this post, there is a need for proper segmentation of potential customers and current customers to make sure we are properly marketing to their needs.
I learned through the reading that for segmentation to be useful, it must be identifiable, substantial, accessible, stable, differentiable and actionable.
Although we now found a way to tap into this small to medium sized market, with a new solution that is competitive, some of the employees are reverting back to old habits and not segmenting the audience appropriately. This is a big miss for my company. We need to realize that since we have a solution for all business sizes, we need to find personas for each size business in the market and be able to use terms in marketing that is understandable for each.
In my opinion, there is a gap within the actionable stage of segmentation because we are unable to successfully market in the appropriate size of business. We continue to use language a multinational company would understand but a mom and pop shop would be left even more confused. Once we can figure out how to reach each of these markets, we will do a better job of winning their business.
As we continue to define our markets, sales has begun to segment by geographic and firmographic (firm size) variables. I think this is a great place to start but we need to continue to make sure we have multiple customer personas.
Has your company been but through a similar situation? I am open to hearing your feedback on advice for upper management.