Customer Segmentation vs. Market Segmentation

Baremetrics

Segmenting customers and target markets is a hot topic for today's marketers. Our customer segmentation tool lets you divide your customers by any metric you choose. Are these two segmentation practices really that different? Wondering how to segment your customers?

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

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Choosing market segments on customer profitability

Tomasz 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.

Customer Segmentation Benefits to Optimize Your Marketing Strategy

Baremetrics

You have to know your customers to market your product. But to market most effectively, you have to target subsets of those customers and hone in on their specific needs. That is the power behind customer segmentation. 1 What is Customer Segmentation?

Customer Segmentation Models: A Smarter Approach

Baremetrics

Your marketing strategies are most effective when you use targeted messaging aimed at your specific customer base. Customer segmentation is a way to break up your current or prospective customers into groups. 1 What is Customer Segmentation? What is Customer Segmentation?

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. Ask your ops team to translate that buying group into business logic in your CRM and marketing system. I call these air-cover programs: paid search, technical SEO, and intent marketing.

Data 62

Behavioral Segmentation: Why It Matters, Types, Examples

SmartKarrot

Marketing is no more a one-way street. What marketing firms had to do earlier was write good copy, take amazing pictures, and strategically ensure it reaches customer attention. What is Behavioral Segmentation? Behavioral Segmentation- Why it matters.

AI 10

3 Things You Can Do … That the Bigger Competition Can’t

SaaStr

Q: How can a SaaS startup survive in a crowded market? Find a segment of the market to win in. Most SaaS markets are crowded today. They might give up on SMBs, or freemium, or higher churn segments. A bit more here: 5 Ways to Enter a Crowded Market.

The Top 10 SaaStr Videos of the Week: ThoughtSpot, Chime, Plaid, Marqeta, Square and More!!

SaaStr

2 “Secrets to Aligning Marketing and Revenue Strategies with Marqeta’s CMO” A great session with Marqeta’s CEO, who previously helped run marketing at Mulesoft.

Are You Ready To Do a SaaS StartUp? Here’s a 5 Part Test to Find Out

SaaStr

Even if you think you know the market, you will learn a ton. certain market segments, or verticals, or use cases, or workflows). Q: What are some advice for people who want to create a SaaS startup?

Your Customers' Profitability is Your Startup's Future Health

Tomasz Tunguz

Ten years ago today, I wrote a post titled “ Choosing market segments on customer profitability. Market Cap in $b. Which customer segment would you prefer to sell to? ” How healthy are the business’s underling customers? Today, that question matters more because of the recession than at any point in the last decade. Selling to very profitable customers benefits a startup.

Customer Segmentation Examples to Improve Your Marketing Strategy

Baremetrics

Before taking advantage of customer segmentation, you need to understand your customer base and what it wants before building new products and creating effective marketing campaigns. Learn more about the customer segmentation tool from Baremetrics. What Is Customer Segmentation?

5 Strategies That Are Working Well Now

SaaStr

Parts of your businesses are struggling, but other parts are doing OK, and some segments are even doing well. Focusing on Segments That Are Thriving. Not enough SaaS companies have segmented their sales teams and marketing efforts into Green, Yellow and Red market segments.

Gartner: IT spending will drop 8% as COVID-19 hits enterprise wallets

IT World

Gartner’s new forecast says all market segments from enterprise software to communications service will experience a decline in 2020, with devices and data-center systems experiencing the largest drops in spending.

What If There Are No Natural Acquirers (For Your Company)?

SaaStr

The things we are both interested in are very similar, our thoughts on risks and markets were well aligned. And I see so many SaaS markets just exploding. The markets and market pull are bigger. It came about over time, as the markets changed, and as the markets grew.

SaaS 225

Successful vs. Very Successful SaaS Companies

SaaStr

Product-market fit. But roughly, if you aren’t growing at least 10% a month in MRR on the way to $1m ARR, and at least 6% a month thereafter, you don’t quite have product-market fit yet. Passion and belief in your market, customers and journey.

SaaS 257

Bootstrapping in SaaS? It Works. But Add ~4 Years to the IPO Timeline.

SaaStr

Second, usually, bootstrapped SaaS companies start at the bottom of the market (SMBs and silos-in-the-enterprise). But the sales cycles are longer, and generally, you need more experienced sales and marketing talent to acquire and close these deals.

A Low Win Rate is Just a Huge Opportunity-in-the-Making

SaaStr

But really, it means you aren't doing any effective marketing. Are you focusing your marketing efforts in the areas you do win? Win rates should go down as you scale, and push into new market segments. Win rates in fact should go down as you do more marketing.

The Easiest Ways to Get From $1M ARR to $10M ARR

SaaStr

The #1 biggest mistake I see from $1m to $10m ARR is chasing new market segments, new categories, new areas where you have 0 or almost no traction. Do not chase customer segments where you have zero, or only token, traction. Put proportionate effort into your customer segments.

You Don’t Need an Exit Strategy with Legaltech Entrepreneur Matt Spiegel

Chart Mogul

Matt Spiegel is a licensed lawyer and serial entrepreneur. His first tech startup was called MyCase, a SaaS product that, “keeps all of your important case details — documents, contacts, calendars, emails, tasks, invoices — in a single, organized location.”

5 Interesting Learnings from BigCommerce at $180,000,000 in ARR

SaaStr

Shopify is #1 in so many market segments, but for “bigger” SMBs BigCommerce (and perhaps less-custom enterprise deployments) is arguably #2 to Shopify. How do you carve out a segment where you are #1, if you aren’t #1 overall?

SMB 200

It’s Time to Resegment Your Market (and Revise Your Pricing)

OpenView Labs

The US election is behind us, many of our customers at Ibbaka have worked out their Covid-19 and post Covid-19 strategies, and we’re moving into a new market in 2021. Given the changes we’ve all experienced in 2020, now is the time to resegment your market. Segmentation lets you target.

10 Things I Wish My Board and VCs Had Told Me

SaaStr

I got the VPs of Sales, Product and Marketing I needed. If yours is, invest more there and worry a little less about pressure to do new things, new market segments, etc. They say CEO is a lonely job, and I guess in some ways true, but in many ways it’s quite the opposite.

5 Common Demand Generation Mistakes

SaaStr

86% of marketers consider demand generation a core part of marketing. 1) Not Qualifying and Segmenting Leads. Not qualifying or segmenting leads is a common marketing mistake. A lot of marketers struggle with this question.

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.

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. But at the same time 6200+ B2B marketers say that their biggest challenges are generating traffic and leads, and proving the ROI of marketing activities. What Is A B2B Marketing Strategy? B2b Marketing Strategy Framework. Segment your market and focus on a target segment.

B2B 66

SaaStr Podcast 467 (and Video): Bottom Up vs. Top Down Selling in the Enterprise with ThoughtSpot

SaaStr

For this, you must have strong resources in marketing and sales for long period of time. . With garage-dwellers the product-market fit is still questionable. High-rollers seek growth, as long as the go-to-market part of their P&L is finding efficiency.

I’ve Been Through 6 Recessions. Here’s Everything I’ve Learned About Adapting.

OpenView Labs

No one will come out of this experience unscathed, but some will come out of it stronger than they went in and better positioned to thrive in the market that emerges from the current situation. Is there an opportunity for you to: Gain market share. A market segment that’s worried.

You Don’t Need an Exit Strategy with Legaltech Entrepreneur Matt Spiegel

Chart Mogul

Matt Spiegel is a licensed lawyer and serial entrepreneur. His first tech startup was called MyCase, a SaaS product that, “keeps all of your important case details — documents, contacts, calendars, emails, tasks, invoices — in a single, organized location.”

B2C 52

How to Create Sales Sequences Your Reps Will Actually Use

Sales Hacker

Many companies start their sales engagement initiative with just one sales ops person who’s also in charge of sales enablement and working with the marketing team. They can hit the ground running with dozens of sequences tailored to market segment, industry, and persona.

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.

Scaling Your Startup 10x From $20M to $200M with Sapphire, Lightspeed, TripActions’ CRO, and 6Sense’s CMO (Pod 522 + Video)

SaaStr

When you think of scaling up, many things may come to mind, like hiring, culture, marketing, and sales. The go-to-market playbook. The go-to-market segment worked together on key metrics across the revenue board. The friction between sales and marketing.

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

Tomasz 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?

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. Your Magic Number is often well under 1.0 — you often only need 6-8 months to go “profitable” on a customer from a sales & marketing expense because your sales team is lean, and your marketing spend is small.

Sales 189

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. Like the indicators themselves, these buckets also go by many names: market segments, customer profiles, buyer personae, churn cohorts, or again if you are a statistician: customer populations.

SaaS 137

What is a good SaaS Churn Rate?

SixteenVentures

” It will vary depending upon your market and your position therein. Then we get punitive; since there’s just a lot of churn in this market (segment), we’ll give them even LESS. Is 5% a good monthly SaaS Churn Rate?

Churn 103

Raise, Sell, Merge, or Scale? How to Navigate the Market Downturn.

SaaSOptics

How to Navigate the Market Downturn. Everyone is starting to feel the squeeze of the market—especially those in the tech space. With the current market looking less than optimistic, how should you plot your next move? Is there market demand for your product?

5 Interesting Learnings from Sprout Social at $240,000,000 in ARR

SaaStr

So it wasn’t that long ago we checked in with Sprout Social, but when we did in June 2021 , the public markets were at their peak for SaaS and Cloud stocks. But fast forward to today, and Sprout Social is one of the winners in the current market dynamics.

SMB 48

Pricing and Innovation

SaaSX

Your customer probably doesn’t care what market segment you think they are in. After a few years, the pricing is accepted by customers and markets, it is built into systems, and it is hard to do much more than tweak around the edges.

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. When growth is the primary determinant of SaaS company value, then there is always pressure to expand your available market. SaaS businesses can be overwhelmingly complex.