Ensemble b2b Segmentation and relative targetting

Relative Targetting & Demand Type

Julian Archer, Research Director

18th December, 2014

© 2014 SiriusDecisions. All Rights Reserved 2

The Demand Creation Process

Identify Target Market

Determine the segments with the highest potential and chance of success and understand pain points and relevant product value propositions

• Relative Targeting• Demand Type

Understand Buyers

Identify and develop personas for all relevant buyers

• Persona Development

Create Campaigns

Create campaigns and messaging designed to address buyer’s needs

• Campaign Framework

Create Tactic Mix

Identify influencers and create marketing plans with effective tactic mix

• Degree of Influence

• Nurture• Pipeline Accel

Measure & Refine

Create a framework to measure results and continually optimize efforts

• Tactic Measurement Framework

• Segmentation Strategy• Contact

Database Management

• Campaign Measurement Framework

• Marketing Attribution

• Aligned Measurement Framework

Who to Target How To Create DemandHow to

Measure

How to Organize


The Demand Creation Process

Identify Target Market

Determine the segments with the highest potential and chance of success and understand pain points and relevant product value propositions

• Relative Targeting• Demand Type

Understand Buyers

Identify and develop personas for all relevant buyers

• Persona Development

Create Campaigns

Create campaigns and messaging designed to address buyer’s needs

• Campaign Framework

Create Tactic Mix

Identify influencers and create marketing plans with effective tactic mix

• Degree of Influence

• Nurture• Pipeline Accel

Measure & Refine

Create a framework to measure results and continually optimize efforts

• Tactic Measurement Framework

• Segmentation Strategy• Contact

Database Management

• Campaign Measurement Framework

• Marketing Attribution

• Aligned Measurement Framework

Who to Target How To Create DemandHow to

Measure

How to Organize


Most Common Targeting Mistakes

Not involving sales in the

development and evolution

of your targeting strategy

Ignoring the facts: Do you have a

solution for them?

Company or individual focus, instead of both

Lack of periodic review

Lack of customized messages

Quantity over quality

BAD TARGETIN

G


The SiriusDecisions Relative Targeting Framework

EXTERNALFACTORS

Solutions Delta

Domain Knowledge

Messaging

Sales Readiness

Database

INTERNALFACTORS

Trend

Category Spend

Offering Use

Competitive Presence


External Factors

EXTERNALFACTORS

Trend

Category Spend

Offering Use


Are there trends that will make buyers more likely to purchase your product?

Is this target segment growing?

Are there regulatory issues?

Are buyers spending money in your category?

Have they increased or decreased this spend?

Is the product in question critical to buyers?

Do they tend to view it as a nice-to-have?

Are there multiple strong competitors selling in this space?

Is competitive presence relatively weak?


Banking

Insurance

Brokerage

External Factors

INTERNAL FACTORS

Solutions Delta

Domain Knowledge

Messaging

Sales Readiness

Database

EXTERNAL FACTORS

Trend

Category Spend

Offering Use


Banking

Dormant

Insurance

Brokerage

Banking

Insurance

Brokerage


External Factors Scorecard

ACTIVE NURTURE DORMANT

Key Trends Current trends exist that indicate likelihood to buy

We are able to list three or more trends specific to this market that we believe will drive targets to make a purchase in the short term

We are able to list one to two trends specific to this market that we believe will drive targets to make a purchase in the short term

We cannot list any trends specific to this market that we believe will drive targets to make a purchase in the short term

Target Health

General health of the target

Growing Stable Shrinking

Pending Triggers

Are there any pending triggers that can be identified in the target market that will force targets to purchase imminently?

Yes, and we are aware of their specifics and how our product/service aligns with them

Yes, but we are not aware of their specifics and how our product/service aligns with them

No

Category Spend

Has there been an increase in your product’s category spend in the past 12 months?

Moderate to significant Minimal to moderate Minimal to none

Leading Company Adoption

Has there been adoption of the solution by leading companies within the target market?

We can identify a number of industry leaders that have adopted the solution

We can identify a few industry leaders that have adopted the solution

We cannot identify industry leaders that have adopted the solution

Category Perception

How your product category is currently perceived

Necessary A nice-to-have No established perception of use and importance

CompetitivePresence

Are there existing solutions and competitors that target this segment?

No Yes, but our offering is generally accepted to be superior

Yes, and our offering is generally accepted to be comparable to others

Trend

sO

fferi

ng

Use


Internal Factors

Solutions Delta

Domain Knowledg

e

Messaging

Sales Readines

sDatabase

How much of the problems does your solution solve?

What is the gap of current offering to meet the buyer need fully?

Knowledge of needs and nuances of the target?

Are the buyer and user personas defined, as well as buying process and buyer needs?

For vertical solutions, is there industry domain expertise?

Are the buyer personas understood?

Is there specific messaging by audience segment?

Is demand type understood?

Can the sales enablement program be executed on (training, tools, collateral)?

Is the sales force aligned and focused?

Do viable channel partners exist?

Access to data?

Do you have lists and data insights on these prospects or customers?


Banking

Insurance

Brokerage

Internal Factors

INTERNAL FACTORS

Solutions Delta

Domain Knowledge

Messaging

Sales Readiness

Database

EXTERNAL FACTORS

Trend

Category Spend

Offering Use


Banking

Dormant

Insurance

Brokerage

Banking

Insurance

Brokerage

Active

Nurture


Internal Factors Scorecard

ACTIVE NURTURE DORMANT

Solution Delta

How has the product/service in question been designed?

Our product/service is designed specifically for the target market

Our product/service has been altered/enhanced to address needs within the target

The product/service is designed for generic use across markets

DomainKnowledge

How knowledgeable are marketing and sales about the target?

We have deep domain expertise in regard to the market

We have limited domain expertise in regard to the market

We have no domain expertise in regard to the market

Messaging Has your organization developed specific messaging that addressed known needs within the target?

Yes, we have a built a complete messaging approach for the target

We haven’t built a messaging approach, but have the resources and expertise to do so

We haven’t built a messaging approach, and don’t have the resources/expertise to do so

Sales Readiness

How well prepared is the sales team to sell into the target?

The sales force can access a complete set of tools and collateral to helpbuild knowledge and competency

The sales force can access

a limited set of tools and collateral to help build knowledge and competency

We cannot identify industry leaders that have adopted the solution

Database Do you have the database capability and/or list procurement ability/budget to market to this target?

We have a significant, complete number of records in the market

We have a significant number of records, but many are inaccurate or incomplete

We have few records in the target, and it would be difficult to secure them

from a third party


SiriusPerspective:

The type – or types – of demand an organization is trying to create play a significant role in its approach.

Demand Type Impact on New Market Approach

Established Market

SiriusDecisions Demand Spectrum

New Concept

• Disruptive product / service

• No budgetary line item• Requires issue creation

New Paradigm

Market Leadership

• Retools existing process• Solves current problem

better• Replaces current line

item

Process / Solution Change

• Necessary product / service

• Highly contested market• Trying to steal market

share

Competitive Positioning

DEMAND TYPE KEY CHARACTERISTICS KEY REQUIREMENT


Impact of Demand Type on Buying Cycle

Solution

Loosening of the Status Quo

Committing to Change

1. 2.

Education

Exploring Possible Solutions

Committing to a Solution

3. 4.

Justifying the Decision

Making the Selection

5. 6.

Vendor Selection

New Concept

New Paradigm

Established Market

Segmentation Strategy Discussion


Guiding Principles

Practically Useful

Homogeneous Populations

Objectively Measurable and

Identifiable


Dimensions – Commonly Used/Easy to Obtain

• Company size

• Geography

• Industry

• Ownership and financial mission

• Types of offerings

• Consumption

• Customer type and purchase patterns


Dimensions – Less Common/More Difficult to Obtain

• Location

• Age

• Technology/systems used

• Buying center attributes

• Credit rating/debt

• Growth rate

• Profitability

• Market position

• Revenue and sales models

• Geographic activity

• Direct vs. indirect

• The company’s customers


Dimensions – Least Common/Most Difficult to Obtain

• Corporate culture

• Technology adoption

• Decision making structure

• Growth strategy

• Corporate governance


Recommended Approaches

• Limit segments to a manageable number

• Don’t attempt to cover everything

• Use criteria that are easy to identify

• Identify segments that are stable

• Look beyond the obvious


Thank You – Let’s Keep the Conversation Going!

Julian ArcherResearch Director

Demand Creation Strategiesjulian.archer@

siriusdecisions.com@JulianArcher

Floriane MalotSales – Marketing – Product

Alignment Evangelist – [email protected]

@floriane_ma_fr

mailto:[email protected]



