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Making Net Promoter Score More Actionable

Effective Segmentation to Guide Territory Realignment

Vic Hunter
Vic Hunter
Vic is founder and president of Hunter Business Group LLC. He is nationally know
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May 20 Sales Effectiveness 0 Comment
Segmentation Implementation begins with a clear behavioral description of each segment.

1. Who are the individuals and accounts within this segment?
2. What are the behaviors that define the segment?  NOTE:  Behavioral descriptions of segments are far more effective in labeling accounts by segment than what the individuals say about their account or firmographics attached to the account.
3. What are the segment’s needs?
4. What are we currently doing right and wrong within each segment?

The Segmentation Decision Tree is a visual tool for moving this description into an efficient map for segment labeling individuals and accounts.  NOTE:  By using the branch tree approach to labeling, fewer relevant questions / or conditions must be discerned to properly label the segment.

Observation: Once this Segmentation Decision Tree has been documented, sales people and distributors can often identify customers into segments for up to 70%+ of their sales base without gathering any additional information.

Customers and prospects are further labeled into segment with the help of e-mail opens to specific messages, phone dialog, and sales engagement (with a focus on new opportunity qualification).

Once labeled or in the process of being labeled into a segment, communication platforms are built to deliver value-based communications to each segment as “Back Ground Music” in a rules-based, dynamic, content-driven messaging platform.  Value based communication workshops by segment build clarity into the messaging from the Needs-Based Segmentation research.  These workshops also define with the segment customers the frequency of communication and the medium of choice.  These messages are controlled by the grade of the account and become laser-focused and integrated across contact medium.

Messaging and cultivation is managed against the cost of new opportunities within each segment.  Typically, there are five grades within each segment defining the magnitude of investment and allowing for periodic validation of the investment to expected revenue.

Customer Territory Alignment then defines the sales coverage within a defined contact cadence by grade.  Defining a cadence by grade within segment is the most powerful productivity tool available to the sales process.  The integration of phone contacts with the face-to-face contacts can broaden the sales coverage at the account level by 40%, decrease the cost to serve the accounts by 17%+, and increase the perceived number of face-to-face contacts and drive higher loyalty scores.

Customer Alignment then integrates Segmentation with Account Grading and Integration of e-business, phone, and face-to-face contacts.

If you are interested in effective segmentation to guide territory alignment, This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will contact you to discuss.

About the author

Vic Hunter

Vic is founder and president of Hunter Business Group LLC. He is nationally known for his expertise in business-to-business direct marketing and service to the nation's leading companies.

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