Segmentation is when companies divide prospects and customers into groups. If you are a metal-cutting job shop, you may split them into companies needing turned, milled, or welded parts. If you are the sales manager, you may divide your prospect list by region, state, or potential business level. It is like when I was in public school; we lined up alphabetically or by height.
But if you are in the service business, you divide your customers by the outcomes they are trying to achieve and their location. Like when the schoolteacher divided their class by potential or needs.
All this dividing is called segmentation. And what the service group does is called tiered segmentation.
Click here to read the complete article on Thomas Industry Updates.
Here is a list of the other article about segmentation we published on our blog:
- One Is The Ideal Segment Size For Growth and Retention
- Segmentation Is Key To Growth
- Customer Churn Management, Segmentation, and Data Base Integrity
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Middlesex Consulting helps our B2B product manufacturing clients grow their services revenue and profitability by applying the methodologies and techniques associated with Customer Value Creation and Customer Experience professions to assist its clients in designing and commercializing new services and the associated business transformations. Contact Sam here.
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