Go-to-Market Customer Segmentation

CUSTOMERSEGMENTATION &TARGETING FOR GO-TO-MARKET WORKSHOP

A s h l e y G r e e n e , I n s t r a t i f y

There's Only One King In Business...

No Matter What The Project…

Instratify @AshleyKGreene

There’s an incredibly

dangerous tendency I’ve

dealt with:

Trying to be something for everyone.

Image Source: https://i.ytimg.com/vi/nNJzrvtnoQE/hqdefault.jpg

A Few High-Level Concepts...


Customer SegmentationStrategically grouping your

customers by at least 1 common factor.



Target Segment Selection Choosing which customer segment

you should focus your efforts on.Hint: As you go-to market, you’ll want

to select the low-hanging fruit.



Customer Personas Gives you the necessary context to

sell, build, and market moreeffectively. You're selling to

HUMANS after all...

What Drink WouldYou Be More Likely

To Buy?


The drink foreveryone.

The drink for startupfounders when they

need energy,inspiration, and luck.

Because Who You Target Determines:


Messaging

Business Model

Product Roadmap

Pricing

Marketing Channels

Sales Structure

For every increment of focus, your effectiveness increases

by 10x.



1. The more segments you target, the more resources

you need to be effective; AND

2. The broader those target segments are, the more

resources you need.

BY DEFINITI0N...


Startups are severelyresource constrained.

FOMO?


Get Over It.


"Focus means saying no to highlyattractive opportunities that may be

knocking on your door...You will win by having a product thatis over the bar for one sub-segment,

and well targeted focused messagingthat resonates clearly with that

segment."

David Skok, VC, Investor in Hubspot

Harvard

Ivy League,

then Boston

Schools

All U.S. Colleges (Top

20 1st), then

All U.S. High Schools

International

Colleges + High Schools

Select Markets: U.K., etc

Any individual with an email address

Businesses

Example: Facebook's Add & Stack Targeting


SMBsWeak Go-to Market Target Segment?


SaaS startups with at least 2 remote support teammembers.

A bit better.


Using the latter...

Messaging: Can highlight the key benefit(s) related to remotecustomer support teams in SaaS startups.Pricing: Could price on team members, number of tickets,flat-feeProduct Roadmap: Prioritize features that make handing-offsupport between team members easier.Marketing channels: Inbound, SEO, Sharing


If this was easy,

everyone would

have their own

billion-dollar

unicorn.


Total Addressable Market (TAM): Who could ever get value out of

your product?

Serviceable Available Market (SAM):Who can you realistically serve with

your product?

Share of Market (SOM):What segment of SAM can you serve

best right now?

Case Study: Square’s TAM, SAM, SOMat Go-to Market

TAM:Anyone who sells things.

SAM:Any person that accepts credit cards for payment.

SOM: Tech-savvy merchants in the Bay area.

Source: First Round Review


You'll Want To Think About...

Which segment is the lowest-hanging fruit? Who’s pants are on fire? Who is already showing love for your product?

Who can get the most value from your product as it stands today?


Ideal Go-To Market Target Segments...

1. Are low-hanging fruit.

2. Have low barriers to entry.

3. Have the possibility of compounding returns.


Low-Hanging Fruit

Feel the pain your solution solves tremendously.Has resources to buy.

Will get enough value from your product as it stands today.

MOST LIKELY TO BUY FROM YOU.


Low Barriers To EntryEasy to reach.

No monopolies.

Not heavily regulated.

Cost-of-acquisition is reasonable.


Compounding ReturnsHighly influential.

Evangelical.

Make great case studies for future segments.

Help spread product awareness.