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Growing Your Business Profitability Through
Database Profiling, Targeting & Segmentation
By Lisa Cole-Paquin
www.protocolmarketing.com
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Summary
In the face of increasing competition, marketers need to identify
target markets that provide the greatest Return on Marketing Investment (ROMI).
This article provides an introduction to processes that can help identify
the most profitable customer segments. Through database profiling,
targeting, and segmentation, you can develop strong competitive
positioning and precisely target your scarce marketing resources.
Profiling
Profiling entails an analysis of your current customer and
prospect data to determine and identify the best industry segments to
pursue. Profiling confirms what you know about your market, as well as
providing insights into where you have had successes you might not have
known about.
What is the profiling process? Profiling matches your customer
or prospect records to public information from data compilers and then
enhances your records with the selected information (industry type,
company size, etc).
Tips:
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- DO profile your customers first because past success is
generally a predictor of future success.
- DO start with basic demographic profiling (industry type &
company size) as these data descriptions serve as “data bridges” to
outside databases from business information compilers.
- DO commit to regular data updates (CASS, NCOA, external
data providers) regularly — at least every 6 months.
- DO profile your prospects since there are more prospects
than customers, resulting in better statistics. Prospects reflect
your current market interests and provide additional insights that
your customer base can not offer.
- DON’T make assumptions based on anecdotal sales feedback
about where the best marketing opportunities exist.
- DON’T develop a customer profile on information that is
not accessible through readily available data sources.
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Targeting
Targeting is the process of segmenting an
industry or market so you can concentrate your marketing efforts on
key segments. Targeting makes the selling and distribution of your
products/services more effective because it provides a focus to your
marketing activities.
What are the standard targeting
approaches?
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- Current markets for current products
- New markets for current products
- New products for current markets
- New products for new markets
- Competitive opportunities
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Segmentation
Segmentation is grouping together
individuals/companies into clusters that share common characteristics
relevant to the sales of your product or your selling process to find
the differences that will give your marketing an edge. Marketing
opportunities increase when segmented groups of customers with varying
needs/wants are recognized.
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Benefits:
- Leads to relevancy of communications and offers
- Saves marketing dollars
- Establishes important data elements for marketing
databases
- Can be used to qualify leads
What are possible segmentation approaches?
- Demographic
- Relational demographic
- Sales cycle
- Behavioral
- Competitive
- Analytical
- Job title/job function
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Customers segment themselves naturally.
To be successful, a company must ensure that their offers meet the
prospects’ needs because the offer is perceived to have true value.
Knowing how customers behave —profiling, targeting, and segmentation
— is the secret to growing your business profitably. For more
information, contact Lisa Cole-Paquin, SVP Principal Marketing
Strategist at 1-800-351-3807 or lcolepaquin@protocolmarketing.com. |
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 About
the Author
Protocol B2B helps B2B
marketers leverage the power of database marketing to improve sales
productivity and deliver measurable results. Clients hire Protocol
to develop and manage fully integrated marketing campaigns
specifically designed to generate leads and cultivate sales.
In her role as SVP, Principal Marketing
Strategist for Protocol, Lisa Cole-Paquin works closely with clients
to provide strategic marketing leadership to help them grow their
businesses predictably, reliably and profitably. |
Protocol
Integrated Direct Marketing
www.protocolmarketing.com |
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