To truly realize the potential of lead segmentation, you have to understand what it is and how it functions. When you segment your leads, you basically create divisions and subdivisions of your contacts database into smaller groups with similar characteristics.
Lead segmentation is a great way of creating smaller segments of people who have similar tastes and preferences in your sales and marketing funnel.
There are basically two different types of segmentation:
1. Explicit: This type of segmentation is done using characteristics that a customer submits through forms, conversations, etc.
2. Implicit: This type of segmentation is based on the actions of leads or customers implied in their actions and behavior. Some examples would be customers who downloaded a PDF on email marketing and leads who keep adding products to their cart.
A combination is both is advisable because human beings are complicated in nature and tracking their behavioral patterns along with basic demographic information paints a complete picture of what they truly want from you.
Strategizing a Marketing Campaign
When you are strategizing for a marketing or a sales campaign, you should pay attention not only to what your leads appear on the surface but also to what they are underneath it. Just because you have a 35-year-old lead does not mean he will not like cartoons or anime. You get the drift, right?
We should not just assume just because we can generalize. Every person is different, and with this difference come different expectations. This is a good reason why we need implicit segmentation along with explicit segmentation. A healthy mix of both will bring out exactly what you need to do in order to satisfy your leads and customers.
Define your purpose for lead segmentation
Of course, the reason why you are looking towards segmentation is that you want to optimize your campaigns and get better results. You feel that your strategies might be lacking something and lead segmentation might be the answer that you have been searching for.
But you need to establish how to alter your strategies once you establish your segments. Establish how each segment’s attitude towards your brand. Establish what drives them to choose a certain brand or a product. Find out what they like in your products or in your competitors’. Figure out which marketing channel is preferred by each lead or customer.
Why is Lead Segmentation Critical?
Lead segmentation is crucial for three major reasons:
It Improves your Ability to Channelize your Efforts
If you have been having trouble generating leads, lead segmentation will help you focus your marketing efforts. It will help you channelize your efforts so that you do not feel lost again.
You will know exactly where you can have generated leads and how you can attract them. You know what ticks them and how you can convert them. You know what they like and what they don’t. You know exactly what you need to do. This helps you save valuable time and energy.
It Improves your Ability to Deliver Better Value
What is your offer? Is it better than your competitors’? Are you losing business because your value proposition is not as lucrative as your competitors’?
Lead segmentation provides answers to all these questions because you can dive into all that data and get a better understanding of the value of your offer. If you feel that there is a need to change your offer, then you do so and get better results.
It Lets You Target the Right Audience
With lead segmentation, relevance is key. If you were previously wasting time at the wrong places to generate some leads, then lead segmentation would put you on the right track to success. It will help you focus on the campaign that is more important to you or might be able to generate more leads.
All the data gathered will point you in the right direction so that you can make the right decision.
Have you tried lead segmentation yet? Has it improved your marketing? We'd love to know how you segment your leads.