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TMCVocabulary

How to Define a Market Segmentation Map

pg.5

By Geoff Anderson

Results
With a valid model for segmenting our sales, we have a tool that is helping us identify critical areas of our business that were previously mired in minutia and confusion.  We are working to create a streamlined vehicle for gathering the segment, sub-segment and the USER information.  Our inclination is to leverage our CRM tool to gather and report on this information as it has become our most real time source for forecasting business trends, and has the advantage that it can be modified without adjusting data that is reported to Wall Street. 

Additionally, in the process of analyzing thousands of past sales events we were able to identify several adjacent markets that offer a significant opportunity for revenue expansion. These adjacent segments had been lightly served, but never isolated, understood, and given the focus needed for growth. 

Lessons Learned

Analysis of sales and customer test support history data bases was very helpful to the process, and should be one of the first team activities in working through the debates about segmentation models that generally accompany this type of project.  Also at the same time we were doing our sales analysis it was helpful to look at industry market research reports to see how consultants were segmenting our market.  As we were finalizing our market model we saw that it was much more consistent with industry views than we had originally assumed, with the benefit being we could use industry data to help generate market share tracking by segment.