White space analyses to identify new sales potential

Remarkable white spots were still visible on our maps well into the 19th century. Unknown areas that could only be systematically opened up by the pioneering spirit of curious explorers. A ” white spot ” symbolizes a lack of knowledge until today.

Now imagine your target market as a map: You have certainly already developed parts of it intensively, but there are guaranteed to be a few large or small white spots on it. Your chance to discover new sales potentials – through systematic development work, as used to be the case with the pioneers. And in your case, with the help of clever white space analyses.

white space analyses

The concept of a white space analyses

White space analyses help you to identify the customer or revenue potential that your company is not yet exploiting. So it’s about market opportunities that you haven’t paid much or no attention to yet, even though you could use them more efficiently and with less impact on resources.

In this sense, white space analyses can on the one hand be directed inwards. By looking at your own strengths and capabilities as well as your products and services and deriving the resulting opportunities and risks, you determine the potential for further developing your portfolio – in line with the needs of your customers. If, on the other hand, you look outwards in your white space analyses, identify previously undersupplied target groups or interesting niches in your market. It certainly makes sense to combine both approaches in order to find the ideal intersection of market potential and the strengths and potentials of your company.

White Space among existing customers

Upselling opportunities with existing customers are a big white spot of untapped potential for many companies. Which products or services does your customer already purchase from you and which could be of interest to him? The latter is your white space. In order to be able to answer this question as accurately as possible, you need to know your customers and their current challenges very well and develop a deep understanding of them. But the effort is worth it. Upselling is many times more efficient than winning new customers.

Moreover, this white space is not only an opportunity for you, but also a risk – if you leave it untapped. Because then it may happen that your customer will sooner or later look to your competitor for a solution to the challenges you have not yet considered. And you will lose it completely in the meantime. To remain in the map metaphor: If you do not put your flag in the undeveloped area, there is a risk that someone else will do it.

White Space of your competitors

Of course, the reverse strategy can also be derived for you from this circumstance: Use the white space that your competitors leave unnoticed by their customers. To do this, you must not only know a lot about the strengths of your own company or product and the customer concerned, but also understand the strengths and weaknesses of your competitors. Find out where you really are better – and use exactly that to close the supply gap of your competitors’ customers. Ask yourself: Which problems of these customers can you solve for which your competitor has no recipe? In this case, this is your white space.

White Space in the market

In addition to supply gaps with your customers and those of your competitors, there are certainly potential customers on the market who have been overlooked or deliberately not served by the two of you. Niche target groups that are not covered by a classic target customer analysis, but nevertheless offer attractive sales potential. Search for such groups and deal with their very specific needs. If you succeed in making such niche target groups a suitable, sharply tailored offer, you will be able to develop this submarket for your company almost without competitive pressure.

White-Space-Analyses need reliable data

Knowledge gaps can logically only be closed by knowledge. Usually, the white spots are not the obvious sales opportunities, but those that only reveal themselves after an intensive engagement with the corresponding target group or the concrete customer. In order to see your white space, you need to understand the specific challenges of your current or potential customers – and for this you need extensive data. If necessary, also about your competitors. Implisense Pro provides you with a huge database that you can use for your white space analyses. In particular, you can identify upselling potentials or cluster niche target groups with Implisense with just a few clicks.

Open up the white spots in your market and in your customer database. This is a very efficient way to recover previously wasted sales potential with little use of resources.

 

Technographics – What the technology used is telling you about your target group

Following our recent focus on firmographics as B2B counterparts to demographic data, we would like to discuss a third category of market segmentation information: technographics refers to technographic segmentation.

Technographics also serve to summarize or differentiate individuals or companies on the basis of their similarities and differences with regard to certain variables. In order to be able to deduce from this how likely they are to be interested for your own product or service or to be able to tailor your marketing and sales approach to this target group.

picture drone

What is technographic data?

Technographic data provides information about the hardware or software used by a specific person or company, their usage patterns or their attitudes to specific technologies. Just as demographics and firmography each provide a profile of the person or company to be described, so a technographic description gives you a picture of the person or company’s IT profile.

What do technographics tell you?

The use of technographics naturally makes sense especially in technological environments. If, for example, you offer business software, it is logically a strategic advantage for you to know which other systems are already in use in this company.

But even beyond IT-based products and services, these data have some significance. Knowledge about the use of certain industry-specific software can provide you with insights into certain internal processes. Or the use of many cloud services can give you insight into the home office policy of your leads. And so on – in particular by linking the technographic data with firmographic information or certain trigger events – profound conclusions can be drawn.

Where do you get technographic data from?

There are many ways to obtain information about the technical conditions in your target group. In some cases it is enough to simply ask for it. Maybe your support is directly at the customer’s and can get a picture of the situation on site. Another possibility are digital crawlers that, for example, read information about the IT environment of your website visitors. But job advertisements can also be a valuable source. Take a look at what software skills potential employees are expected to have. And, of course, such data can also be purchased from special service providers.

You can easily access technographic data using Implisense Pro. With intelligent filters, you can even search for companies with specific IT needs.

Admittedly, the interpretation of technographic data may require a certain degree of creativity and association, depending on the activity of your company. But especially in conjunction with company graphics or other information you already have about the company in question, they can provide you with the decisive impulses for a promising approach in marketing and sales. And they are a must for IT companies anyway.

Give it a try: This step-by-step explanation makes it very easy to find companies that use a certain technology (e.g. Mailchimp).

 

Are you overestimating your target market?

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.

target market

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.