How to segment customers quickly and effectively to improve products. Presentation given by Dutta Satadip of Market Tools and Brent Harrison of SmokeJumper Strategy at Silicon Valley PCamp10, Mar-12 2010 at Yahoo!.
3. Dutta Satadip
Director of Products, MarketTools
Leadership roles in Product Management, Marketing,
Consulting and Engineering
10 + different enterprise software products with
over 20+ end to end product lifecycles
Global business development & execution in
Europe (Czech Republic, Italy, Spain, UK, Germany)
& Asia ( India, Viet Nam, Israel)
MBA, Haas School of Business, UC Berkeley with background in Computer
Science
President, Board of Directors, Hemophilia Foundation of
Northern California
Senior Manager, Application Modernization Products, HP
Avid traveler, over 25 countries with aspirations to
double that number
4. Brent Harrison
Founder & President, SmokeJumper Strategy
Over 30 projects in Marketing Strategy, Product Innovation &
Online Marketing
B2B: Ariba, Emerson, MerchantCircle, VeriSign
B2C: MyWire, Veoh, Yahoo!, Yakima
Biotech: BD Biosciences
Development: M7 (BEA)
Education: McGraw-Hill, SchoolLoop, SunGard Public Sector
Founder, Savvy Cellar Wines & Organic Wine Review
Vice President, Marketing @ Apple
Executive Director & GM @ AOL and Netscape
“Smokejumper”, parachuting into forest fires
8. Case: B2B Software Company
B2B eCommerce marketplace:
Companies post supply opportunities
Receive bids
Issue purchase orders
Complete payment cycles
Situation: Not growing as rapidly as planned
Desired Outcomes:
Attract more suppliers
Encourage more transactions
Develop revenue-producing supplier programs
Source: Smokejumper Strategy
9. Why are we not growing as fast as…?
What trends are we missing? Industry
What type of organizations
Company
should we target?
Who are the “real” buyers? Individuals
10. 3 Step Industry Analysis
Size Substitutes Sale Cycles
• Overall Spending • Regulations • Spending triggers
• Adoption Maturity • Local Context • Sales competencies
11. Example: Improvements by Job Function
What capabilities would improve your Mktg /
company's performance? Sales Finance Ops Admin IT
Improving accuracy of customers 'PO's 2.70 2.68 2.49 2.92 3.00
Marketing to customers 2.82 2.07 2.41 3.15 2.53
Invoice / payment status 2.35 2.97 2.61 2.88 2.54
Collaborating with customers 2.62 2.44 2.45 2.54 2.71
Targeting buying decision-makers 2.81 1.97 2.35 2.73 2.27
Adopting best practices 2.51 1.91 2.41 2.85 2.65
Improving merchandising 2.48 1.92 2.35 2.92 2.33
Invoicing 2.28 2.82 2.31 2.48 2.39
1 = Not at All 4 = Dramatically Improve
Note: This could be sourced from or developed by secondary or primary research.
Source: Smokejumper Strategy
12. 3 Step Company Analysis
Purchasing Process People
• Cost/innovation focus • Decision making • Organization culture
• Business goals • Agile v/s Structured • Risk seeking/avoiding
13. Example: Mktg/Sales vs. Finance
Marketing / Sales Finance
Measured on cash flow
Measured on sales growth
management
Focused on challenges associated Focused on getting paid according
with generating revenue to terms
Believes EC could improve
Believes EC could improve visibility
marketing to customers; targeting
into invoice/payment status; and
decision-makers; merchandising;
invoicing thru one common system
and adoption of EC best practices
Source: Smokejumper Strategy
14. 3 Step Individual Analysis
Demographic Behavior Personal Success
• Age/ Generation • Attitude towards product • Social status
• Education • Awareness • Career progression
15. Example: Attitudinal/Behavioral
Segmentation
Revenue Reaper (41%) Lead Needy
Increasing revenue (11%)
Generating awareness
& leads
Margin Makers (16%)
Revenue & cost Fulfillment Fiend
(9%)
Cost Boss (23%) Processing & Fulfillment
Managing costs & investment decisions
Note: Placement of companies based on primary motivation; many respondents have multiple motivators; segments are
mutually exclusive - each company is plotted in one and only one segment.
Source: Smokejumper Strategy
16. Why are we not growing as fast as…?
Outcomes
Prioritize Drive Prioritize
product targeted among
backlogs marketing segments
17. Key Takeaways
Industry Company Individual
Size Purchase Motivation
Substitute Process Behavior
Sales Cycle People Demographic
Identify what
Identify what to
you should
focus on
ignore