How to generate revenue from your segmentation data

For sales, however, market segmentation is interesting but not a technique they use to bring in more revenue.

 

They should use it. Why? It would result in revenue growth.

 

How? Convert market segmentation data to account segmentation data.

 

The goal of account segmentation is to understand which accounts are going to generate the most revenue over the shortest period of time and at what cost.

 

The unit of measure for the sales team is the account.

 

The unit of measure for the CEO, product leader, and CMO is the market.

 

This is a subtle, but significant, difference.

 

For example, if you tell a sales leader that the oil and gas market is a $1 billion market growing at 5 percent per year, he/she cannot do anything with this information.

 

In contrast, if you tell a sales leader that Exxon Mobil will buy $2.3 million worth of your product in the next fiscal year, a sales leader can assign coverage, calculate quota, and build an account plan.

 

To generate revenue from your segmentation data, take it to the account level.

ABOUT THE AUTHOR

Barry Witonsky

Delivers a decisive course of action to sales and marketing leaders by analyzing their market, industry, company and products.
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With more than 20 years of experience in sales, marketing and product development, Barry has firsthand knowledge of the obstacles that arise when these groups are not aligned around customer needs and corporate goals. By spearheading initiatives to resolve these alignment issues, he has helped several companies increase revenue, maximize productivity and make their number.

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