What Commercial Segmentation Strategy Delivers Optimal Performance?

reading time : 2 min

Picture of Lucie Monnot
Lucie Monnot

Content Marketing Manager

A good segmentation of customers and prospects is indispensable to commercial effectiveness. The organization of the sales force can be based on geographic criteria, the type of target, or the profile of the sales representatives — with “hunters” and “farmers.” Whatever strategy is chosen, it must necessarily be customer-oriented.

Table of Contents

Segmentation commerciale pour une performance optimale

The advantages of territorial segmentation

In a context of intense competition and increasing digitalization of the commercial relationship, buyers particularly value interactions with a sales representative who is close to them geographically. This representative can therefore plan regular visits, prioritizing them according to the profile of each customer.
As such, they must pay greater attention to emerging relationships, as well as to customers who have already had some contact with the company and who show strong potential. It is with these two categories that additional revenue can be generated while building a lasting connection. The sales representative therefore positions themselves as both a “hunter” and a “farmer.”
Mature and declining customers — those whose figures are on a downward trend — require fewer visits, and only in a relationship-maintenance context with existing contacts.

Collaboration between hunters and farmers

Most companies need sales representatives who specialize in winning new business. But by denying them the opportunity to maintain contact with their customers — by handing them over to the farmers — management risks frustrating them. To avoid such a situation and stimulate team spirit, it is preferable to group both profiles together within the same department under the supervision of a single person.
 
Increasingly, inside sales forces represent an essential support for field sales representatives. Their role consists of gathering information, analyzing customer expectations, and identifying leads — aided by a digital sales force solution. Thanks to the comprehensive and high-quality data they provide to their mobile colleagues, the latter know where to focus their efforts and are able to perform more effectively. For a very large or new market, external sales representatives employed by a service provider can reinforce internal teams. In this case, it is interesting to opt for specialization by product, in order to have unique expertise when facing customers. There are also highly specialized sales representative profiles, particularly for niche markets or highly technical products — though product-based segmentation is only recommended if the customer themselves adopts this principle for their own purchasing.
Équipe de quatre professionnels logistiques en réunion debout devant un tableau de bord avec cartes et graphiques dans un entrepôt

The customer typology approach

In the case of a long purchasing cycle, or specific purchasing procedures or activities, a customer typology approach becomes necessary:
  • B2B / B2C
  • Public / private customers
  • Micro-businesses and SMEs / key accounts
  • Industry / services
  • Etc.
In this way, the customer benefits from a tailored response — though the risk is geographic dispersion. A prior study of growth prospects and portfolio profitability is indispensable before dedicating sales representatives to specific customers.
In general, the commercial strategy defines the ideal organization for optimizing the sales force. The company must define targets and objectives for each of them, the skills required (commercial and otherwise) to deliver an optimal customer experience, and the management model. Today, a multidisciplinary approach is essential: all skills must be pooled in the service of overall performance.
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