Customer Segmentation B2B

Customer segmentation B2B is an important part of a lead-generation strategy
allowing you to gain a competitive advantage.


What is proper customer segmentation?

Customer segmentation is the process of creating groups of customers with similar intentions and geographic, behavioral, and demographic characteristics. In Lead Generation, customer segmentation involves defining the right segmentation criteria that actually influence the purchasing decision.

customer segmentation

What are the 3 most important criteria for segmenting target groups?

The most important criterion for segmenting customers for a marketing campaign is purchase intent. Aligning the content of the marketing message with the intention is responsible for 60% of the success in Lead Generation processes. For international projects, but also for smaller local projects, geographical market segmentation is important. Other criteria are the so-called behavioral criteria, allowing to narrow down customer segments based on search phrases, devices used, or CRM data.

advantages of customer segmentation

What are the benefits of customer segmentation?

First and foremost, customer segmentation allows you to optimize advertising campaign spending. The second benefit of customer segmentation is that it allows you to better tailor your marketing message to the intentions of a particular segment. Thus, properly executed segmentation allows you to achieve better Lead Generation results.

Segmentation and Lead Generation

Generating leads is the main process of performance marketing. Performance marketing results are evaluated according to conversion and profitability criteria. Performance marketing uses customer segmentation to optimize spending and increase conversion rates by tailoring content to specific customer groups.


What is market segmentation?

Market segmentation is a Lead Generation process and applies to both customers and products and services. In addition to customer segmentation, product and service segmentation creates groups with similar applications and characteristics. In practice, market segmentation allows optimizing a company’s limited resources into the most profitable market segments. The result of proper segmentation is the identification of a market niche.

market segmentation

What is market niche?

Often the concept of niche is confused with market segment, which is a broader term. Market niche, or market niche, is a narrow area of the market identified in the process of market segmentation. A niche is a market segment in which there is an excess of demand over supply for a product or service. 


What is 80:20 segmentation?

As part of business development in the B2B and SaaS segments, marketing activities often revolve around the 80:20 rule. This strategy involves selecting the 20% of the market that brings 80% of the profits to the company. Concentrating marketing activities in this way achieves the highest profit at the lowest lead cost.

How to perform CRM-based customer segmentation:

  • Make a list of audience characteristics in CRM that have a significant impact on sales. You can use data such as the stage of the funnel, customers’ journey on the site, their buying habits, purchase frequencies, company size, and products and services owned.
  • Select the top 20% of customer segmentation criteria that most affect sales.
  • Segment your audience according to the selected criteria.
  • The segmentation performed will identify a certain number of customer groups with common characteristics. The next step is to prepare appropriate content for each group.

How to perform customer segmentation in Google Ads

Audience management is a section of Google Ads where you can create audience segments, based on data sources and statistics. Customer segmentation in Google Ads allows you to create new segments based on demographics, interests, location and devices. Individual segments are created based on Google Analytics, YouTube or Google Play data sources. The app does not provide individual customer data, but it allows to segment customers according to the mentioned criteria. The method of segmentation by Google search terms is also a very important feature. 

Analysis of audience statistics

Analyzing audience statistics on Google, allows you to get more information about the chosen segmentation method and identify important relationships and criteria. Statistics allow you to separate segments by similarity category, a category in the market, age, gender, geographic location, devices used, etc.

statistics analysis audience groups

How do you tailor your marketing message to your customer group?

Proper content customization should start with defining customer intent. The four main customer intentions are commercial, transactional, educational, and navigational. When the customer is determined to buy (bottom of the funnel), then the message should be transactional (e.g., price, delivery, kit content information, reviews, benefits of purchase). When the customer is in the decision phase, then the intent is referred to as commercial, i.e. the content should help the customer make a product choice (e.g. product ranking, description of unique prices, technical specifications). When the customer is seeking information for education or navigation, the content should not have commercial or transactional characteristics.


What is A/B testing based on?

Customer segments and a tailored message do not yet guarantee the desired results. An important element is the collection of data, and its analysis for optimization. A:B tests are used for content optimization. In practice, they involve the use of two landing pages with different content aimed at a given target group.


Optimization of the customer group

Customer segmentation should be optimized based on conversion data. Particularly important is information on the quantity and quality of leads. The typical result of a well-executed customer segmentation is a lower number of leads, characterized by a much higher conversion to sales. When the number of inquiries is higher, it means that customer segmentation may be too broad and should be narrowed. Low conversion indicates the need to optimize the content (A/B testing) and, in further steps, to change the customer segmentation criteria.


optimization of audience group

Customer segmentation: where to start?

If you don’t know where to start, you can always write to us. At drySEO, we have years of experience in introducing SaaS products and the High-Tech industry to foreign markets. DrySEO’s Omnichannel Lead Generation strategies effectively utilize target groups and customer segmentation in major foreign markets.