Your B2B data-driven marketing strategy is key to unlocking potential growth opportunities that you might miss out on otherwise.
Your prospect and customer data is worth more than you think – it’s time to start leveraging it to drive success.
From tradeshows to third-party purchased lists, website forms, and online research… businesses big and small have accumulated vast amounts of data in their CRMs.
However, much of this data goes unused, leaving many companies sitting on a goldmine of untapped potential.
If you’re one of these companies, don’t worry – you’re not alone. Studies have revealed that more than two-thirds of business data goes unused.
In 2023, the real challenge isn’t accumulating data, it’s knowing how to effectively use this data to drive business growth.
This is where data segmentation comes in – by breaking down your data into meaningful segments, you can unlock valuable insights and take your marketing efforts to the next level.
B2B Data-Driven Marketing Starts with Data Segmentation
In digital marketing, data segmentation is simply grouping customer and prospect data into meaningful categories based on shared characteristics.
After grouping your customer data into segments, you can:
- Uncover what your customers really want by identifying common & unique pain points across different segments
- Pinpoint your most valuable customers and tailor your marketing efforts to meet their needs, leading to increased revenue
- Discover which marketing channels are most effective for different segments, helping you optimize your marketing budget and ROI
- Identify the data sources that are driving the most conversions and revenue for your business
- Get actionable insights into what messaging resonates with different segments
- Just to name a few!
In other words, data segmentation allows you to develop a deep understanding of your customers, so you can make better marketing decisions.
Keep reading to discover how to get started…
How to Get Started With Data Segmentation
Are you looking to get started with data segmentation but get overwhelmed by the technical aspects?
Don’t worry, I’ve got you covered. In this post, I’ll provide a high-level guide on how to get started and avoid getting bogged down in the details.
The good news is that you don’t need an expensive tool to get started with data segmentation.
Any tool that offers robust segmentation options and allows you to create automated rules based on your data fields will work. I personally recommend ConvertKit as a budget-friendly option.
Now, let’s get started by looking at how you can get some quick wins using data you have now…
Focus on Low-Hanging Fruit First
Start with segments that will deliver the most benefit in the shortest time.
Instead of trying to segment your data in every possible way, begin with the segments that will give you the best results in the least amount of time. This will keep things simple and save you time and effort.
By focusing on these simpler segments, you will get a head start and be able to create more complex segmentations later on.
For example, if you’re running a B2B software company, you might start by segmenting your data into 2-3 company size segments.
This will help you quickly and easily distinguish important differences in how small and medium-sized enterprises (SMEs) and large enterprises engage with your marketing.
As a result, you can better target your advertising efforts and approach how you market to these groups differently.
Create Segments Using Data You Already Have
Data segmentation can be a time-consuming and resource-intensive process. That’s why it’s important to focus on the data you already have, rather than trying to collect new data right away.
By creating segments based on the data you already have, you can start seeing results more quickly and with less effort.
By starting with the data you already have, you can begin to see the benefits of data segmentation without getting bogged down in the collection of new data.
Prioritize 3-4 Major Segments that Will Create the Biggest Impact
Don’t try to boil the ocean with too many segment categories when you’re just starting out.
You’ll have the opportunity to delve deeper over time and create more segmentations as necessary once you become more experienced in segmenting data and using it to inform your marketing decisions.
But, trying to tackle too many segments at once can be overwhelming and lead to less effective marketing decisions.
By honing in on these key segments, you can allocate your resources more effectively and ensure that your marketing efforts are as efficient and effective as possible.
Which Segments Should You Build First?
To start with data-driven marketing, it’s crucial to get your initial segments right. However, there’s no one-size-fits-all solution as every business is unique, making it essential to determine the segments you want to build first.
That said, you may already have a rough idea of the target audience categories you want to test and learn more about first.
But, if you’re wondering which types of data segments your organization should explore, here’s a list of the most important ones to consider:
- Target Company Characteristics: Most businesses have multiple target account types. Think of things like company size and industry.
- Target Persona Characteristics: Consider the characteristics of the individuals you are targeting within each company persona, such as job title, location, or buying behavior.
- Data Source: Where did the data come from? Identifying the source of your data can help you determine which data sources are worth your time, effort, and money.
- Identified Pain Point: Try to identify the main reasons why someone might need or want your product or service. Use methods like cold calling, ad responses, or customer surveys to collect this data.
- Lead Score: Use automation tools to score your prospects and customers based on their engagement level with your brand.
- Lead Grade: Analyze your data to determine which leads are the most promising and likely to convert into paying customers.
When you’re just starting out, focus on the segments you can already identify and only create 3-4 major segments. Remember, creating the segments is only half the battle. You also need to use your data effectively to tailor your marketing efforts and drive results.
How to Use Segmented Data
Once you have your segments created you’ll need to figure out how to use them to better inform your marketing strategy.
Experienced B2B digital marketers use the segments to create more personalized marketing campaigns AND use them to test which messages work best with different audiences.
Here are some quick steps to help you make the most of your segmented data:
- Identify your major pain points and audience segments.
- Create ads that focus on each pain point and show them to the corresponding audience segment.
- Analyze the performance of each ad.
- Compare the results across different segments.
- Identify which pain points are most important to each segment.
- Tailor your messaging accordingly.
- Continually analyze and refine your approach.
TL;DR;
By segmenting your data, you can use your advertising to learn more about your audience and more accurately personalize future marketing campaigns so that they speak directly to your audience’s pain points.
This will improve your conversion rates and generate more leads from your advertising.
Additionally, you can use this information to improve your email marketing, sales demos, cold calling, content funnels, and advertising strategies.
And, by continually analyzing and refining your segments with continuous segmenting and marketing tests, you will stay ahead of the competition and drive more revenue for your business.