THE LAW OF SEGMENTATION
Have you ever heard of the law of segmentation? If you have, then you must know how relevant this law is to the success of any business. But, the sad thing is, many organization and sales rep don't follow this law. If you have a story backing up your product, and you also can clearly define its position, you still need to segment your market. You can't resonate with everybody, and you also can't be relevant to everybody, which is why you need to have a target market and build your product, cycle, and stories around that market.
The thing about segmentation that took me a long time to realize is, there is a difference between market share and profitability and what a lot of organizations do is they don't differentiate that to the sales team. All they say to them is, go out and get new businesses, but what kind of business? Is a low margin business or high margin business? And if it is a high margin business, running around to all different types of accounts all day long, without a story or program won't yield any meaningful result. You may be successful on some end, but your success may be very minimal because what you are doing is a low price, high turns sales process.
Companies like Walmart use this process well, but what you want is profitability right? You want to sell at a higher margin to a market segmentation that wants your product and resonates with your story. An example of a company worth imitating is BMW. BMW sells a lot less than Walmart, has fewer customers than a Walmart, but margins higher than Walmart. Why? Because, they tell their sales rep what the need from them, they give explicit instruction and lay reachable target by segmentation. This is one good way to differentiate your business from others. When you need targeted results, you need to make use of segmentation.
I call segmentation the bluefish. In a pool filled with goldfishes, it's difficult to identify the personalities and characteristics of each because they all look alike. But, when you introduce a bluefish among their midst, it becomes easy to differentiate and study. This is the difference between those who segment and those who don't. Segmentation makes it easy to target the needs, wants and desires of your customers.
You could pick one or two segmentations when prospecting. You can choose property managers, education, or health care. But the basic idea is that you understand the needs, wants, desires, and challenges of your customers and lay your plans accordingly.