By now, we are fully entrenched in the COVID-19 crisis. We have moved beyond the “shock” phase and into an “acceptance” phase of the new normal, at least for the time being.
As market leaders, we must adapt to the current situation. That means reevaluating the current go-to-market plans and resource allocation to determine where changes are required. This must be done with speed so as to keep up with the changing market dynamics. Here is a framework on how market leaders are adjusting their GTM plans in real-time to reflect the changing environment.
At the same time, executives must not lose sight of their long term objectives and plans. At some point, things will come back to how they were (roughly speaking). When that time comes, executives must be ready to elevate above the reactive and highly fluid model they are operating in now to a more structured and stable approach.
Balancing both of these – the adaptive, short term need with the stable, long term need – is difficult. And over the past few weeks, we have seen many executives speak about the challenges that this situation presents. Still, execs must find a way to address both the short and long term. This is where hyper-segmentation comes into play.
What is hyper-segmentation?
Hyper-segmentation is the act of identifying high potential and high propensity segments and accounts to target. The difference between hyper-segmentation and “traditional segmentation” is that companies are doing this exercise with a “moment-in-time” lens. What that means is that companies are re-segmenting their account base to target customers and prospects who have a heightened propensity-to-buy and/or potential spend figure in this current macro environment. While many companies are struggling right now and managing contracting budgets, there are a select few industries that are still growing. Companies are looking to those segments to reallocate budgets in the short term to drive top-line growth.
What does great hyper-segmentation look like?
Great hyper-segmentation is all about getting to a point, quickly, where companies are making informed decisions around resource (re)allocation. That means executives understand what segments and accounts need to be prioritized and give them the greatest chance of short term growth. This manifests most often in a reprioritized list of market segments (industries, products, geographies) and accounts (customers, prospects, and/or opportunities) to target.
Once this output is generated, companies can begin to apply the work immediately.
How can hyper-segmentation be applied?
As an executive, there are multiple ways to apply hyper-segmentation to your business. And they span both strategic and tactical. Here are a few examples:
- Resource Allocation – the output of hyper-segmentation can inform strategic decisions around resource allocation. Specifically, this work helps inform where you want to focus your GTM resources (people, money, and time) in the short term given current market conditions. As an example, you may reallocate resources currently focused on the Airline industry, which currently has a low propensity-to-buy, to a higher propensity industry such as Consumer Goods.
- Target Account List – more tactically, another output from hyper-segmentation is a refined account list for the sales and marketing team to use and align around. From a marketing perspective, companies can shift their outreach efforts to those accounts with a more immediate propensity-to-buy. And from a sales perspective, reps can be focused on calling customers and prospects that are still spending money as opposed to those that are in cost management mode.
While there are more ways to apply the output than these two examples, this shows the different levels of application that are possible.
Given the above, as an executive, you are likely asking yourself, “who should we be focused on selling to today?”. It is also very likely your sales leaders and teams are asking the same question, and are looking to the organization to provide them clarity on where to focus their time.
If this is the scenario you find yourself in, then consider conducting a hyper-segmentation exercise today. There are quite a few materials out there which go into more detail, as well our Revenue Growth Help Desk to help you get started on this journey. Taking this action keeps you moving forward and ensures your team is focused during this uncertain time.