How to: Get customer segmentation right
UK B2B brands aren’t making the most of customer segmentation. Paul Hague, director at B2B International, offers tips to help businesses succeed
According to our survey of large UK businesses – principally those that supply other companies and which have an average turnover of £1.9 billion – UK firms are lagging behind their European peers when it comes to employing customer segmentation within their marketing and product strategy. Just 32 per cent of British B2B companies use sophisticated segmentation that goes beyond simple firmographics, which is in stark contrast to Germany where that figure is over 60 per cent.
The results revealed that the majority of UK B2B firms are not currently focused on acquiring the depth of customer information that is essential in understanding their needs, behaviours and attitudes to procurement. An absence of this knowledge suggests that companies are likely to struggle to accurately target their customer base with relevant segmented products and services – an issue that can ultimately affect their ability to gain competitive advantage, increase revenue and profit levels, and inspire customer loyalty.
At B2B International, we believe the best B2B market segmentation research gets as close as possible to the customer, enabling organisations to meet their requirements far more effectively. Here are six steps towards implementing a successful strategy: