How do you identify and prioritize the most valuable and loyal customers in each territory segment?

1 Analyze your customer data

The first step to segment your territories is to collect and analyze your customer data. You need to understand who your customers are, what they buy, how often they buy, how much they spend, and how satisfied they are with your products or services. You can use various tools and methods to gather and organize your data, such as CRM software, surveys, feedback forms, or sales reports. The goal is to create a comprehensive and accurate profile of your current and potential customers in each territory.

2 Apply segmentation criteria

The next step is to apply segmentation criteria to your customer data. Segmentation criteria are the factors that help you group your customers into different categories based on their characteristics, behaviors, or needs. For example, you can segment your customers by geography, industry, size, revenue, growth potential, loyalty, profitability, or satisfaction. The criteria you choose should be relevant to your business goals, market conditions, and competitive advantages. You should also avoid using too many or too vague criteria that might make your segments too small or too broad.

3 Rank your segments by value

The final step is to rank your segments by value. Value is the measure of how important, profitable, and loyal each segment is to your business. You can use various metrics and formulas to calculate the value of each segment, such as lifetime value, retention rate, referral rate, or net promoter score. You should also consider the costs and risks associated with each segment, such as acquisition cost, servicing cost, churn rate, or competitive threat. The ranking will help you prioritize your segments and allocate your resources and efforts accordingly.

4 Tailor your sales strategy

Once you have ranked your segments by value, you can tailor your sales strategy to each segment. You can customize your value proposition, messaging, pricing, offers, channels, and tactics to suit the needs, preferences, and expectations of each segment. You can also use your segmentation insights to identify new opportunities, cross-sell or upsell existing customers, or target new prospects in each segment. By tailoring your sales strategy, you can increase your conversion rate, retention rate, and customer loyalty.

5 Monitor and evaluate your results

The last step is to monitor and evaluate your results. You need to track and measure the performance of your sales strategy in each segment. You can use various indicators and tools to monitor and evaluate your results, such as sales volume, revenue, margin, market share, customer satisfaction, or customer feedback. You should also compare your results with your goals and benchmarks, and identify any gaps or areas for improvement. You should also review and update your segments regularly, as customer needs and market conditions might change over time.

6 Learn and improve

The final step is to learn and improve. You need to use your results and feedback to learn from your successes and failures, and improve your sales strategy in each segment. You can use various methods and sources to learn and improve, such as testing, experimentation, research, or best practices. You should also seek feedback and input from your customers, colleagues, managers, or mentors. By learning and improving, you can enhance your sales skills, optimize your sales process, and grow your sales results.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?