5 Tips for Effective Marketing Segmentation

Nimble - Sales

Thanks to market segmentation, organizations can better understand their target audience, determine the potential value of the product for this market, and plan the customer journey for each segment of their audience. Marketing

Choosing market segments on customer profitability

Tom Tunguz

Most businesses fund new initiatives including marketing and technology projects from profits. The more profits a company generates the greater their willingness to pay for services and ultimately the larger the market size for a startup. Market Cap in $B. These dollars are pulled in many directions: covering potential losses incurred through the year, remodeling, new online marketing initiatives and ideally profits.

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To Generate Pristine Data, Lock Down Your Buying Group

InsightSquared

Historically, many marketers have been in a situation where sales defines their own buying groups and practically no two salespeople define it the same. Here’s how to define your buying group: Define your total addressable market (TAM). Segment by product line.

Data 197

How to turn a first-time purchase into a high LTV customer

Chart Mogul

Successfully turning your e-commerce traffic into repeat customers with high LTV lies in segmentation and personalization. Jenna Ochoa is the Partner Marketing Manager at Justuno. Looking at the marketing funnel. Here, again, segmentation is crucial.

The 13 Critical Questions to Answer about Your Startup's Product Marketing

Tom Tunguz

Though the startup may have achieved product market fit, the company may not understand the fit. Many times, the PM builds the product as quickly as possible to establish product/market fit. In contrast, the PMM answers critical questions about the company, product and market to ensure the product sells. I found an excellent list in Kotler on Marketing that I adapted for startups. Which market segment should we pursue?

If You’re Building Your B2B Marketing Strategy, Start Here

Sales Hacker

For 13+ years in marketing, I’ve never seen a B2B company who’d say they don’t have a B2B marketing strategy framework or that their marketing strategy is ineffective. What Is A B2B Marketing Strategy? B2b Marketing Strategy Framework. The breadth of the market.

B2B 97

The Virtues and Opportunities in Being #2

SaaStr

Except with Salesloft and Outreach both are winning in the same space , each with dominant market share. When in a large space, segments alone can be huge. 2 often has a better product, at least for some market segments. #2 2 Can Go Down Market Easier.

Your Sales Efficiency Will Probably Plummet Toward $10m ARR. Plan For It.

SaaStr

And often, if you are capital efficient, your marketing cost will be close to $0 at this point (you are barely spending anything to acquire most customers), and your sales costs are pretty predictable. Competition in core deals is the root cause of systemic high sales & marketing expenses.

Sales 268

Segmenting the SaaS Market for Sales

Tom Tunguz

The first step in developing a sales strategy is to build a robust market segmentation. I’ve used data from the US Census to develop a segmentation that reveals some surprising facts about the SMB market and may help inform your startup’s sales strategy.

Outbound Sales Science: How Growlabs Went From $0 to $2.5M ARR in 6 Months

Sales Hacker

Market Segmentation combined with tailored messaging. The key to achieving explosive growth is to start by identifying your Ideal Customer Profiles (ICPs) via segmentation, reaching out to them with personalized targeted messaging while building a scalable and repeatable process.

Price skimming: an experts guide with examples

ProfitWell

Not only does it define your early monetization strategy, but it also heavily influences what market segments you’re likely to appeal to directly and how your product will be perceived. What’s more, it can also be a direct route to entrenched stability in your market area.

Segmenting the SaaS Market for Sales

Tom Tunguz

The first step in developing a sales strategy is to build a robust market segmentation. I’ve used data from the US Census to develop a segmentation that reveals some surprising facts about the SMB market and may help inform your startup’s sales strategy. This large segment of businesses provides ample testing ground for product development, market fit validation and creation of word-of-mouth marketing. Payroll Segmentation.

Discount pricing strategy: Are discounts really worth it?

ProfitWell

Discount pricing deducts a certain percentage off the original market price. While all discounts strive to take a certain percentage off an original market price, there are different discounting techniques. Improve your marketing segmentation.

Five ways to make your reps more productive

InsightSquared

Can marketing help? They should see the same metrics every month, to drive their strategy in sales and marketing. Segment your reporting. As a sales leader, you’re only as good as your team, and it starts by managing a team effectively.

SaaS Lead Qualification: You are So Screwed if You Aren’t Good at It

How SaaS Works

This may sound obvious, but even the best lead generation techniques end up with leads that simply aren’t in the market for your product category. Target market segment ?—?Does Does a lead work for a company in your target market (e.g. Marketing interaction ?—?Has

Preparing For Acquisition - The Due Diligence Checklist

Cardin Partners

Preparing to sell your company requires a lot of work. Whether planned or unsolicited, when the time comes to ready the company for sale, you will be able to move much more quickly if your financial house is in already in order.

How Competition Strengthens Startups

Tom Tunguz

These startups' management teams have already proven they can develop marketing and sales competencies while bringing a product to market. The takeaway from this study shouldn’t be any new insight about whether a startups should enter markets with our without competitors.

If You Chase Two Rabbits.

Tom Tunguz

Founders often ask, when is the right time to expand geographically, add a second product or pursue another customer segment? There are now two marketing messages, two sales pitches, two press strategies, two product and engineering teams. Founders should ask whether faster growth and dominance in one market segment builds a more valuable business than smaller penetration of and slower growth in two markets.

The IT Handbook to Choosing the Right SaaS App

BetterCloud

Some tools are called “best in breed”—meaning that they are generally ranked at the top of their market segment. Be sure to include things like “marketing” if you’re looking for a CMS geared toward marketing copy, for example. Introduction.

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A landscape of the major SaaS app stores

Point Nine Land

I believe this is an important trend to follow for SaaS founders as they have to adapt their overall strategy (from go-to-market to product decisions) to this “app store dominated” era. Observation #4: SaaS app stores seem to make more sense for the SMB and mid-market segments.

SMB 59

SaaS reporting software: the metrics you need for SaaS reports

ProfitWell

Simply using an Excel spreadsheet will not cut it in today's hyper-competitive market when your competitors are making use of more sophisticated analytics. Your SaaS metrics should give you some idea where your customers are coming from, and which segment of your users converts well.

Create a Sales Plan That Actually Works (Tips + Template)

Sales Hacker

Lastly, a sales budget plan gives you a sales forecast for a given period based on factors that could impact revenue — like industry trends and entry to a new market segment. Remember, markets and customers are in a constant state of flux. True success always starts with a plan.

How to Optimize Customer Retention for B2B Enterprises

Totango

Is there a way to help marketing segment customers for case studies or reference testimonials? As part of a successful B2B enterprise, you understand the importance of your customers. New customer acquisition is at the heart of most traditional business models.

Disruptive Innovation in SaaS by Competing with Non-Consumption

Tom Tunguz

Clay Christensen, a Harvard Business School professor, asserted in a recent interview that we understand only half of the marketing puzzle: the marketing science involved in a competitive ecosystem, when consumers are buying millions of products. In these markets, concepts like Westendorp Price Sensitivity and conjoint analyses work. But to incite disruption requires a different set of marketing skills.

Christoph Janz on SaaS fundraising in 2018 and how startups should use data

Chart Mogul

Whether startups should aim to dominate a niche before expanding to wider market segments. This week's episode of SaaS Open Mic features a live discussion from the Berlin edition of Mogul I/O, our event series bringing industry leaders together around the topic of sustainable growth. “I

Do Vertical SaaS Companies Benefit from Higher Sales Efficiency?

Tom Tunguz

When writing the post Vertical SaaS Startups Require Different Go To Market Than Horizontal SaaS Companies , I realized that there is a perception on my part and perhaps more broadly that vertical SaaS companies enjoy greater sales efficiencies than horizontal SaaS companies. The marketing team concentrates their media buys to target this audience, the sales team focuses on a smaller lead list. This may be because of a greater competitive pressure within the horizontal markets.

WTF is PMF? (part 1 of 2)

The Angel VC

I’ve been fascinated by the concept of Product/Market Fit for quite some time. The reason why it’s such an interesting and important concept is that getting to Product/Market Fit (PMF) marks a critical juncture in a company’s lifecycle. What is Product/Market Fit? Marc Andreessen got more precise, saying that PMF means “being in a good market with a product that can satisfy that market”. How can Product/Market Fit be measured? pmf product/market fit

Avoiding Poor SaaS Customer Alignment

Chaotic Flow

When I’m not completely absorbed with my agile marketing software startup , I do a bit of SaaS consulting on the side. Future posts will examine the challenges of achieving SaaS customer alignment in customer acquisition, customer success and early product market fit.

5 Stages of the Recurring Revenue Maturity Curve

Navint

Defining the offer, experimenting with discrete market segments, testing pricing/packaging, and solidifying the business case takes place. Sales and marketing efforts are properly aligned (i.e., By: Jeff Wissink , Navint Managing Director.

Block and Tackle Product Marketing

Tom Tunguz

By that point, it was apparent that a new customer segment had emerged that wouldn’t cannibalize their existing business. The wrinkle is that Apple combines this design with superb product marketing. It’s block and tackle product marketing

The three strands of brand authenticity

Inside Intercom

More recently, however, I’ve realized that the technology industry at large struggles with such clarity and consistency – in marketing terms, there is often a difficulty developing a clear value proposition that aligns with product and brand identity. Marketing Growth branding values

Press Release Distribution Service Frequently Asked Questions

Backlinkfy

Press Release submission for Media Coverage from sites like; Google News, Bing News, Yahoo News, Fox, NBC, ABC, CBS, AP News, Bloomberg, USA Today, Market Watch, Reuter’s and major PR Wires like; Cision Wire!

Aligning SaaS Customer Acquisition

Chaotic Flow

Then, there’s the marketing. In my own SaaS experience, be it scaling a sales and marketing team, consulting for SaaS startups or bootstrapping my agile marketing SaaS, Markodojo , I find myself returning to a common theme that always cuts through the complexity: SaaS customer alignment.

A Tale of Two Go To Market Strategies

Tom Tunguz

After last week’s post, Is There a No Man’s Land in SaaS ACVs , a founder asked me to highlight some of the go to market strategies in different segments. The story behind Fleetmatics and Geotab illustrates the way two companies pursued the SMB logistics market in radically different ways, but built roughly similar sized businesses. Geotab addresses the same market as Fleetmatics. There are approximately 22 million trucks in the US.

Startup Best Practices 24 - Marketing Your Product with Novel Framing to Maximize Sales Success

Tom Tunguz

At this point, the critical marketing imperative is to start a conversation with a receptive buyer, and do it thousands of times per year. I met a master software marketer last week, and he shared some of his wisdom. This master marketer pointed to our language. Within in a market, competitors often use the same language to describe their products. The rest of the market described their displays in pixels (e.g.,

After Selling For $580M, Here’s What I Learned About SaaS During My Time At Buildium

Outseta

I’m pretty jaded when it comes to the financial numbers that get thrown around in start-up land—I don’t care what TechCrunch says, I don’t care what your market cap is—I think it’s clear that the world of technology start-ups is pretty screwed up when it comes to financial valuations.

Benchmarking SaaS Startup Efficiency with Revenue per Employee Metrics

Tom Tunguz

Those economies of scale may exist as a consequence of a strong brand, monopoly-like characteristics within their market segment, improving sales efficiency, increases in contract size, better rates of customer upsells, etc. In the past, we have benchmarked the revenue per employee of large publicly traded SaaS companies and determined that the average is about $200k of revenue per person. But, that analysis examined revenue per employee that only one point in time.

4 Things Marketing Can Learn from Product Led Growth

OpenView Labs

Product led growth (PLG) is a go-to-market strategy that relies on the product itself to drive acquisition, retention and expansion. The way software is bought and sold has changed due to the emergence of inside sales and content marketing. Marketing PLG

One of the Hardest Things to Do in Sales

Tom Tunguz

Focusing on one customer segment, the ideal customer profile, reinforces the startup’s strength. Even if you’ve researched the market ahead of building a product, developed an ideal customer profile (ICP), the challenge arrives when you take the product to market. A unexpected surge of interest from a customer type raises the question, “Should we serve that market segment too?”

SaaS Metrics Refresher #9: Segmentation

Chart Mogul

Segmentation in SaaS may seem like a basic analytics practice, but it's actually a critical part of your growth strategy that can help you understand customers and drive deliberate growth. What is segmentation? “Audience segmentation isn’t a new concept.