If you’re in the B2B SaaS industry, you know how quickly the needs of your target audience change.
Every day, you seem to be tackling a new pain point because the industry is evolving rapidly.
Think of all the new features software companies ship and all the newly emerged requirements, like AI, intuitive UX, and more robust automation.
To stay ahead of the game, you need to adapt to your leads’ needs. You must follow an established lead nurturing process and precisely segment your leads.
Without segmented lead lists, you won’t be able to keep up with market demands and nurture your leads the way they want to, pushing them to conversions.
What is lead segmentation?
Lead segmentation is grouping leads into categories based on a set of criteria.
There are no universal criteria, but generally, leads are segmented into industry, team size, location, and how they engage with your businesses.
Lead segmentation is often also called customer segmentation, market segmentation, and audience segmentation.
The goal of lead segmentation is to better target specific lead groups with a customized approach that appeals to them specifically.
To do your lead segmentation right you must understand your prospects from an inside out: from their context to their current struggles, and end goals.
When leads are segmented into lists, businesses can engage them more consistently and accurately, which results in:
- customer satisfaction
- customer loyalty
- customer retention
- increased profits
What are the different types of lead segmentation?
Various types of lead segmentation are used to divide different groups of prospects and better tailor marketing and nurturing efforts.
These are the most common types of lead segmentation used in the SaaS industry:
1. Demographic segmentation.
Segment criteria: Company size, industry, and job title.
Segment leads by basic firmographic details. For instance, a SaaS product designed for small businesses won’t be pitched to enterprises. Similarly, marketing messages are different for IT managers and financial directors, even within the same industry.
- Company size: Segment leads based on whether they belong to small, medium, or large enterprises.
- Industry: Differentiate leads by sectors such as technology, healthcare, education, etc.
- Job title: Focus marketing efforts based on the lead’s role within the company, like targeting CTOs or Marketing Directors.
2. Geographic segmentation.
Segment criteria: Country, region, time zone.
These criteria tailor marketing strategies based on location. A SaaS company might segment leads to offer region-specific pricing or comply with local data security regulations.
- Country: Segment international leads based on their country of operation to cater to varying market needs and legal requirements.
- Region: This can be further broken down by specific regions like North America, Europe, and Asia Pacific; it can also help in planning time zone-specific engagement strategies.
- Time zone: Customizing lead contact times to avoid reaching out during inconvenient hours.
3. Behavioral segmentation.
Segment criteria: Product usage, website interaction, content engagement
This criteria focuses on how leads interact with your product or website. For example, leads who frequently use a specific feature might receive targeted communication about an advanced function or an upgrade that enhances that feature.
- Product usage: Identify how frequently and how comprehensively leads are using your SaaS product.
- Website interaction: Track movements like page visits, downloads, and time spent on your site.
- Content engagement: Monitor interactions with your emails, blogs, webinars, etc., distinguishing who opens, reads, or attends.
4. Needs-based segmentation.
Segment criteria: Specific challenges, desired features
Segment leads based on their specific needs or problems that your SaaS can solve. For example, if a segment repeatedly inquires about integration capabilities, your communication should highlight your SaaS’s integration features and benefits.
- Specific challenges: Group leads by specific operational pain points they’ve indicated through surveys or sales conversations.
- Desired features: Categorizing based on features that your leads have shown an interest in during product demos or trials.
5. Engagement level segmentation.
Segment criteria: Active users, inactive users, new leads
Another method to segment leads is to differentiate them based on their engagement level. Active users might receive upsell offers, while re-engagement strategies could be deployed for inactive users.
- Active users: Leads who regularly interact with your product or content.
- Inactive users: Users who have shown very little activity over a defined period.
- New leads: Recently acquired leads who are still early in their engagement journey.
6. Customer journey stage.
Segment criteria: Awareness, consideration, decision
Leads are commonly divided into groups based on their stage in the buying process. Early-stage leads might get educational content, while those closer to purchase receive more direct product comparisons and live demos.
- Awareness: Leads who are just beginning to recognize they have a problem or need.
- Consideration: Those actively looking for solutions and comparing different products.
- Decision: Leads are ready to purchase and may need a final push
7. Technology-based segmentation.
Segment criteria: Current tech stack, software compatibility preferences
This involves segmenting leads based on their existing technology landscape. For instance, a SaaS providing an add-on to a popular CRM would specifically target companies using that CRM.
- Current tech stack: Understanding what software tools the leads currently use can influence integration needs.
- Software compatibility preferences: Leads indicate preferences regarding integration with other platforms.
8. Budget-based segmentation.
Segment criteria: Budget brackets, funding received
These criteria segments lead based on their financial capacity to purchase your product. It can be very useful for prioritizing premium service offerings to high-budget leads while offering basic packages to smaller teams and companies that have just started out.
- Budget brackets: Categorizing companies based on their declared or inferred budget range for software purchases.
- Funding received: This is especially relevant for startups or growth-phase companies, indicating their spending capabilities.
Key takeaways
Lead segmentation, also known as customer, market, or audience segmentation, categorizes leads into groups using various criteria. These segments help businesses to tailor their marketing efforts more precisely.
Common segmentation types include demographic (by company size, industry, and job title), geographic (by country, region, and time zone), and behavioral (by product usage, website interaction, and content engagement).
Other important segmentation strategies include needs-based, engagement level, and customer journey stages.
Leads can also be segmented based on the current tech stack and software preferences, or based on their budget and financial capacity for purchasing.
Segmented lists are excellent for powering marketing campaigns and crafting targeted messaging.
