How Customer Insights and Segmentation Can Ignite Organic Growth

Video Transcript: Erik Long, Principal

Companies, they make decisions about their customer segments, whether they know it or not. They are prioritizing different customer segments either implicitly or explicitly.

The key is to recognize where value is created for these segments, understanding that it's created different for different segments in the marketplace, and by having that understanding, you can focus on the most important aspects of how to bring them value.

Companies often struggle with an understanding of how you use customer insights and segmentation for the basis for prioritized decision making—it's really the commercial decisions that insights and segmentation, in particular, allow you to make that transforms your commercial effectiveness.

There are three fundamental areas that companies struggle with. The first one is related to the data and the empirical foundation that you need to develop a rich, robust fact base of insights on your customer segments. That begins with an understanding of the integrated data that you need from various sources, be that primary market research, be that secondary data that you need to bring in, or the transactional data that you have as part of your information infrastructure.

The second one they typically struggle with is companies don't know how to translate that data into meaningful revelations about those customer segments. They often think that data and knowledge is sufficient enough. But it's not. You need to be able to translate that into the “a-has” and what that actually is going to mean for how you get to your commercial decisions around your go-to-market strategy capabilities.

And the third thing that companies typically struggle with is how to embed that into the organizational processes, the tools, the kinds of programs and actions that your sales force and that other kinds of your commercial assets are actually making based on this.

It's really the ability and the process of turning those segmentation insights into what you're going to do differently, helping them translate that into the messages you're going to be delivering to the right customers through the right vehicles with the right proof points.

That value proposition—and tailoring that with your sales force, equipping them with the right way to do that—that's the key to having effective customer insights, and in turn, really effective value propositions for your go-to-market strategy.

The key here is recognizing the competitive landscape has changed. Market conditions are changing. The buying process of customers is now more complex than ever, more focused on value, the price pressures that they're getting internally, the buying decision making that's happening among multi-stakeholders in an organization.

All this complexity is requiring that you have truly distinctive capabilities to understand your customers, translate that into effective value propositions, and truly transform your go-to-market strategy.

To view the first part of the "Sales Force Transformation: Developing a Customer-Focused Growth Engine" thought leadership series, click here.