Video Transcript – Ty Curry, Managing Principal
A one-size-fits-all approach to very different customers certainly won't allow companies to maximize the value that they deliver to those customers.
Segmentation becomes the foundation for tailoring coverage strategies, for tailoring the offerings that we put forth to our customers, for tailoring the key messages and the elements of our value proposition that we stress. And it's a real challenge, because many companies are a little narrow in terms of the way that they segment the market, often just looking at simple things like “How much have these customers purchased from us in the past?”
That's not going to provide the right degree of differentiation to really understand how we would approach customer groups differently. We need to develop deep insights into what customer pain points are, what they want and need from their suppliers. And at the same time, we need to look at how valuable are they to our organization. So, what's the potential sales opportunity with them, not just what have they bought from us in the past.
In fact, if you look at the best performing companies within the survey, twice as many of the best performing companies had segment and audience specific materials, and tailored different messages and pieces for different elements of the sales process. We've seen it outside of the survey as well.
In fact, in one recent sales transformation for one of our clients, they had gone from having no capability at all to implementing a customer insights and analytics capability that enabled them to understand the differences across different customer segments, tailor their coverage strategies, refine their messages and their offerings for those different customer segments. And they've seen pretty notable increases in terms of new customer acquisition and in the productivity of their prospecting efforts.