The increasing competition we face in our own industry and in each of the markets in which we compete, requires us to continuously improve our business processes and the way we reach our customers. Our own go-to-market. Otherwise, our value proposition will hardly be able to differentiate itself from competitors and compensate for our efforts.
By researching a market, we can provide answers to questions related to products, services, intermediaries, prices, suppliers, customers or communication channels, to name just a few. Therefore, it is essential to conduct market research periodically , particularly if our clients are companies and, therefore, we carry out B2B operations .
What is B2B segmentation?
Segmentation is a categorization process that allows the separation of different elements to be treated. It is a process that consists of dividing the market based on some specific characteristic, trait or attribute. In this way, it is possible to group (potential) customers according to their needs, desires or behavior and formulate more effective marketing strategies.
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We treat a part or the entire set of our target sample and organize vp safety email lists it into smaller groups, sufficiently homogeneous among themselves and sufficiently heterogeneous among themselves. In this way we will have groups - or clusters - of individuals or accounts that are sufficiently similar to each other - lookalike - so that we can either apply similar strategies within that group and assume that they will behave the same, or look for more peers equal to those we have in that group if we assume that they are performing according to our expectations.
5 characteristics of B2B segmentation
It is a methodical process since it is carried out in an orderly and analytical manner.
To segment the market, geographic, economic, social or technological parameters are established , to mention just a few. When we talk about segmentation variables in Account Based Marketing, we are referring to firmographic variables (of a firm or company).
B2B transactions , unlike B2C ones, are usually more complex due to the value of the operations and the characteristics of the products and services (tangible and intangible), so we will need to have more information on all the relevant aspects of the B2B value chain.
It is a useful mechanism for detecting business development opportunities since each segment, homogeneous among itself, may have a propensity more appropriate to certain actions. What works well with a significant sample of individuals within a segment, may work for the entire segment.
With the incorporation of Martech technology , carrying out correct segmentation becomes absolutely necessary in an Account Based Marketing project.
Importance of B2B market segmentation
Correct market segmentation allows us to understand what a specific group of customers needs. With this information, it is possible to create goods and/or services adapted to the needs and desires of customers. In the case of B2B , these interests are represented by timely supply, a high level of quality in terms of raw materials and other productive inputs and, among other elements, accessible payment conditions.
Although the fundamental objective is to reduce the market to “minimal” groups , these must have growth projections and, above all, be profitable. Otherwise, the financial sustainability of the business will be compromised. Segmentation also allows for the design of a differentiated marketing mix for each group of clients and in relation to competitors.
Types of B2B segmentation
Market segmentation by activity
In this first type of segmentation, different companies belonging to the same economic activity can be identified. To do this, the National Classification of Economic Activities (CNAE) can be considered and used since, in addition to presenting the production units in an orderly manner according to a criterion, the codes used can be used to identify and analyse data and statistics.
Geographic segmentation of B2B companies
Depending on the geographic scope of the business operations , it is possible to group them at a local, regional, national or even international level if necessary. Such segmentation is essential since the geographic separation between the company's production plant or sales office and its customers conditions the activities of the entire logistics chain, the allocation of the customer portfolio and, among other aspects, the competitiveness of prices.