<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Segmentation: How do you prioritize market segments?</span>
09/18/2024

Segmentation: How do you prioritize market segments?

Time to talk about segmentation—aka how you make sure your teams aren’t wasting time on the wrong accounts. If you’ve been following along with my previous breakdowns on account scoring and ICP, you already know that getting hyper-focused on the right accounts at the right time is where the magic happens. But segmentation? That’s the secret sauce to making it all work.

Think of segmentation as your game plan. You’ve got a limited number of reps and a giant pool of potential customers. So, how do you make sure the right players are on the right field? Let’s dive into how you can prioritize market segments.

What exactly is segmentation? 

Segmentation is your strategic cheat code. You’re grouping accounts based on specific characteristics to prioritize and allocate resources—essentially separating the high-impact plays from the ones that can ride the bench for a while. It’s all about figuring out two things: prioritization (which accounts get worked first) and allocation (who’s working those accounts).

Segmentation helps you keep your team laser-focused on the most lucrative opportunities while maintaining efficiency. Whether you’re dealing with your top-tier accounts or specialized verticals, segmentation ensures your playbook makes sense.

The basics: Fit and account scoring 

If you’ve read the account scoring breakdown, you’re already familiar with how we rank accounts based on their potential to convert. Your segmentation is probably built on the back of this scoring model. Accounts that score high (let’s say 80+ out of 100) go into your high-priority segment. These are the accounts that your top reps should be all over, like white on rice.

But here’s where it gets next-level: look at those segments of customer lookalikes—you know, accounts that resemble your best customers in all the right ways. These are the gold mines. By focusing on customer lookalikes, you’re not just guessing who’s going to be your next big win—you’re backing it up with data. These accounts should get worked immediately because they’re the closest thing to a guaranteed conversion.

Market-based segmentation 

Now, let’s talk about market segmentation. You’re probably already breaking out accounts based on factors like company size, spend potential, and industry. You’ve likely got an enterprise segment for those mega accounts, and maybe some specialized vertical segments like healthcare, tech, or finance.

And here’s the kicker: market-based segmentation dictates who works those accounts. Your heavy-hitters are tackling enterprise-level accounts with long sales cycles, while your specialists are diving into verticals where they know the landscape better than anyone. This is where your segmentation directly informs your territory design, which, if you’ve read the dynamic books blog, you already know is key to making sure no rep is stepping on another’s toes.

Segmentation evolves, so should you 

Look, nothing in sales stays the same forever. Your segmentation should evolve as your business grows, as markets shift, and as customer behavior changes. Maybe at first, you’re slicing your segments by company size and industry, but then you start noticing that accounts in certain verticals (or lookalikes) are driving more revenue. It’s time to adjust.

Don’t let your segmentation go stale. Keep it flexible, keep refining, and keep an eye on where the money’s moving. If a particular segment dries up, reallocate your reps to more promising territory.

Why segmentation is crucial for territory design 

This is where segmentation ties everything together—territory design. Without proper segmentation, your territories are just a free-for-all. You’ve got to break it down so your team knows exactly who’s responsible for what and where.

If you’ve built your segmentation around account score, verticals, or customer lookalikes, your territory design can be surgical. The right reps are working the right accounts, whether it’s enterprise-level behemoths or specialized verticals. It’s about efficiency, sure, but it’s also about maximizing revenue by aligning your team with the segments they can dominate.

Prioritize like a pro 

Segmentation isn’t just a “nice to have”—it’s the bedrock of a smart, efficient sales strategy. Whether you’re working with account scoring to prioritize high-potential accounts or crafting dynamic territories to optimize coverage, segmentation is what ties it all together. It’s the blueprint that ensures your reps aren’t just busy—they’re busy with the right accounts.

Keep it flexible, keep it evolving, and keep it strategic. The result? Your team’s working the accounts that matter most, and you’re crushing your revenue goals. Prioritize like a pro, and your bottom line will thank you for it.

Now go out there and segment like a boss.



Related Posts