Did you know that 73% of SaaS companies fail to effectively segment their user base? Such a misstep can lead to missed opportunities, wasted resources, and decreased customer satisfaction. If you’re a SaaS business leader, you might be wondering how to avoid falling into this trap.
In this article, we’ll delve deep into the world of segmentation, shedding light on its significance and presenting four practical tactics tailored for SaaS companies. By the end of this read, you’ll have a comprehensive understanding of how to effectively segment your users, driving growth and enhancing customer experience.
Expect insights backed by data and research, with a focus on actionable managerial advice. We’ll cover the nuances of segmentation, its impact on customer retention, and how it can be a game-changer for your SaaS business.
#1 Reality check for your marketing attribution
Marketing attribution has always been a controversial topic as it’s hard to measure correctly with so many touchpoints.
One old way to keep it simple? 🤔 Ask your customer
During onboarding, simply ask your customers, “How did you find out about us?”
Don’t use a multiple-choice format for this question. Instead, give them a text box where they can write their answer freely.
#2 Shadow/listen to a prospective sales call
Gain direct insights into customer needs, objections, and feedback by actively listening to prospective sales calls.
✅ Firsthand exposure to the questions, concerns, and feedback of potential customers provides invaluable market understanding.
✅ Common objections or concerns raised during calls can be used to adjust sales strategies for future pitches.
✅ Understanding customer pain points and needs can lead to more personalized follow-ups, strengthening relationships and increasing conversion chances.
Coordinate with the sales team for suitable calls, ensure customer consent for an additional listener, actively listen without interrupting, and discuss insights post-call with the sales representative.
→ What problem can you solve for your target customers?
→ What are your customers’ day-to-day life’s primary and adjacent pain points?
→ Which concerns of potential buyers’ can you eliminate through your content?
#3 Sit on customer support for a day
You will get valuable insights from first source, go deep on your talk with your customers:
- What are the most common use cases customers need help with?
- What language do they use to express their problem?
- Which FAQs can you answer via your content?
#4 Specify your audience
- Clearly define who your product is for. By doing so, you create a sense of exclusivity and make those within the target group feel more valued.
- Balancing Act: While narrowing down your audience might seem limiting, it can lead to a stronger bond with a specific segment. It’s about weighing the potential broader appeal against a deeper connection with a niche.
- Build Trust: Transparency about your target audience can foster trust. Customers value clarity and knowing if a product aligns with their needs from the outset.
👉 Create landing pages for your top 3 main personas. Make explicit your address to them on your copy.
In summary, effective segmentation is not just a marketing strategy; it’s a pivotal component for SaaS companies aiming for sustainable growth. By segmenting your users, you can offer tailored experiences, optimize resources, and ultimately drive higher customer satisfaction.
As a next step, we highly recommend diving into the resource: 90 Days of Growth: with +90 Growth Tactics for your SaaS. This comprehensive guide will equip you with actionable growth tactics, further amplifying the benefits of segmentation.