Jul 3, 2024

Client segmentation in professional services firms.

Client segmentation helps firms become more effective and more efficient. 


The importance of client segmentation

The client segmentation of buyers into groups is a powerful marketing concept that has improved the profit of many businesses. However, it is unfortunately misunderstood by many. Customer segmentation goes beyond putting people into categories. Moreover, segmentation allows to learn about clients deeply, furthermore to create content unique for each segment´s needs and challenges.


A reprise of relevant segmentation


Poor segmentation

Some companies group their buyers according to products and services, but a ´small system´ buyer might be the big buyer for other firms. However, many companies group according to size, making it hard to identify useful common needs from such a broad categorization. 


What is good segmentation?

When grouping people by common-human needs, wants, or aspirations, whether it is B2B or B2C it is important to consider characteristics.  


Tests of effective segmentation

To test the segmentation these aspects must be considered: homogeneity, measurability, accessibility, profitability, attractiveness, or relevance. Therefore, a comprehensive evaluation ensures the segmentation is effective.


Segmentation method includes 9 steps:

1: Review all known segmentation methods.

2: Create a hypothesis.

3: Create segmentation dimensions.

4: Test 1: Use existing client data to test the segment dimensions.

5: Test 2: Research

6: Test 3: Test marketing programs

7: Create a full investment and communications program.

8: Gain approval for the investment

9: Implementation

The benefits of segmentation include cost-effectiveness, better communication and marketing, new services, competitive advantage, and increased profit. Consequently, business that implement effective segmentation can experience significant growth.



Tags: Client Segmentation, professional sector, Professional Services