How Smarter Segmentation Made Our Client $500k
One of the most impactful shifts a company can make in its marketing is to move away from trying to communicate everything to everyone and instead communicate specific things to a specific audience.
This was a key takeaway from our work with one client that resulted in an additional $500,000 in revenue—with a negligible incremental marketing spend. This case study has lessons that can apply just as well to B2B companies as to e-commerce.
So how’d they do it? Savvier segmentation.
Let us explain.
The Problem: A Lack of Personalization
Many businesses send the same message to their entire audience, assuming one-size-fits-all will work. But in today’s world, where even big-box retailers deliver highly personalized experiences, customers expect communication that speaks directly to their needs.
B2B companies are not exempt from this expectation, meaning small to mid-size companies must also step up their game.
However, B2B companies often struggle with implementing segmentation. Knowing that smart emailing will drive growth isn’t the same as doing it. Businesses first need to identify the unique groups of people on their list and then consider the content most relevant to their needs, challenges, and goals.
It requires strategy and data analysis, and likely means writing more emails.
Our Approach: Segmenting for Impact
With our client, we took a two-pronged approach:
1 – Understanding the Audience
- We identified different customer segments by asking questions like: “Who are the customers we haven’t yet tapped into?” “What products and services would they most want to hear about?”
- We considered buying behaviors, seasonal trends, and feedback from the client about their audience’s preferences.
2 – Aligning Offers to Segments
- We worked backward from the client’s goals, asking: “What products or services could they sell more of?” “Who are the ideal customers for those offerings?”
- This involved testing various ideas, experimenting with different messaging, and fine-tuning our approach based on results.
Results: The Power of Segmentation
Through this process, we were able to:
- Increase Revenue by $500,000: By creating segmented email campaigns tailored to specific customer types, we dramatically boosted sales.
- Generate $5,000 per Email on Average: Each segmented email generated an average of $5,000 in additional revenue, with some campaigns significantly outperforming.
- Capitalize on Trends: In one instance, we identified a purchasing trend and acted quickly, launching a targeted campaign that brought in $65,000 in a single week.
Lessons for B2B Companies
Although these numbers and results are specific to one business, the principles are universal:
1 – Know Your Audience
Segmentation starts with understanding who your customers are and what they need. For B2B companies, this could mean differentiating between decision-makers, influencers, and end-users.
2 – Personalize the Message
Tailor your communication to address specific challenges and goals. For example, if you’re a B2B company serving multiple industries, your manufacturing clients may require a different message than your healthcare clients.
3 – Experiment and Iterate
Not every idea will work perfectly, but testing and refining your approach can lead to significant breakthroughs. Collaboration between your team and your clients is essential.
4 – Act Quickly on Trends
When you notice a shift in buyer behavior or a new opportunity, don’t wait. Agile marketing can yield impressive results.
5 – Leverage What You Have
While the client did spend more money on the copywriting and tech setup for these emails, the ROI was still fantastic. For companies with an in-person staff, it would be even higher.
Conclusion
Segmentation is a powerful tool for driving growth, whether you’re in e-commerce or B2B. By understanding your audience, personalizing your messaging, and being willing to experiment, you can create campaigns that resonate deeply and deliver exceptional results.
This case study highlights how targeted communication can transform your email list into a revenue-driving asset.
What steps can you take today to meaningfully segment your audience and personalize your approach?