If you misjudge your target market, it is not only difficult to evaluate your sales and marketing success. Above all, this circumstance will lead to you wasting resources on supposed interested parties who in reality are not interested at all. Conversely, a realistic assessment of your target market allows you to use your marketing and sales resources much more efficiently and successfully. Nevertheless, many companies still tend to take the categorization of potential customers too far – partly out of ignorance, partly out of false convenience.
Goal-oriented segmentation of your target market
The most common mistake: These companies do not make the decisive final step in segmentation. The three stages of approaching your target market:
1. Total market
How large is the entire market in which you operate? For example, if you offer cash register software for laundries under German law, your total market includes all laundries in Germany.
2. Adressable market
Limit the share of the market to which your offer really fits. For example, if your POS software is particularly suitable for companies above a certain size, your addressable market could in this case include all laundries in Germany with 20 or more employees.
3. Accessible market
The fact that your offer could basically fit a company of this kind does not mean that you can actually reach it in a specific case. Whether there is a concrete need for an offer like yours depends on many more factors. By selecting potential customers with a specific need for a product or service such as the one you offer, you can narrow down your target market extremely promisingly.
The right answers through the right questions
Obviously, the success of the often neglected step 3 – i.e. the limitation of your actually accessible market – depends on you choosing the right selection criteria. Firmographic data alone is no longer sufficient at this point. After all, you want to know which companies are specifically interested in an offer like yours – and why! You therefore need to identify signals that indicate the level of interest among your potential customers at the current time.
It is in the nature of things that there is no universal scheme for this. The information you need to do this relates to the specific context of your own offer. To select the right data, you need to know and understand the purchasing process of your target customers. However, the following questions may provide initial clues:
- Who are the relevant decision-makers?
- Who are the actual users?
- Does the company have the necessary budget?
- Is it the right time for our solution?
Evaluating and using data
Implisense Pro helps you to obtain and evaluate the relevant data. The database provides you with hundreds of up-to-date data points on all companies registered in the German Commercial Register. With just a few clicks, you can select your total market based on the specific criteria you have defined – and in this way determine all the companies that form your accessible market.
Remember, however, that this is a dynamic structure. Since your available market should represent companies with a current need, it is a snapshot. Make your marketing plan accordingly flexible in order to be able to react promptly to changes. Implisense Pro’s daily updates keep you up to date in near real time when something relevant changes in one of your leads.
Avoid the mistake of inadequate market segmentation in the future and use Big Data for a targeted use of your marketing and sales resources.