Emerging Tech: How to Segment B2B Markets
- Henry McIntosh
- Nov 30, 2025
- 20 min read
Emerging tech firms often struggle to stand out in B2B markets. Unlike established players, they face challenges like limited budgets, longer sales cycles, and sceptical decision-makers. The solution? Market segmentation. By focusing on specific customer groups, companies can target the right prospects with tailored messaging and avoid wasting resources.
Key Takeaways:
Why Segment? B2B buyers in 2025 demand personalised solutions, making generic strategies ineffective.
How It Works: Identify your Total Addressable Market (TAM), refine it to realistic targets, and focus on high-value segments.
Segmentation Tools: Use firmographics (company size, industry), technographics (tech adoption), and needs-based data (specific challenges).
Prioritise Wisely: Start with Innovators and Early Adopters for faster traction, then expand to larger markets.
Ideal Customer Profiles (ICPs): Build detailed profiles to align marketing and sales efforts.
Track Performance: Use metrics like conversion rates, sales cycles, and customer lifetime value to refine strategies.
This step-by-step approach ensures emerging tech companies can achieve product-market fit, build trust, and scale efficiently. Let’s dive into the details.
How to Segment your Market for an Outsized Impact in B2B (2x CRO and 7x ex-head of Sales)
Step 1: Define Your Total Addressable Market (TAM)
Your Total Addressable Market (TAM) represents the total revenue opportunity available if you were to capture 100% of your market [5].
For emerging tech companies operating on limited budgets, defining your TAM is crucial. It helps set realistic growth targets and avoids wasting resources on ineffective strategies. Without a clear TAM, you risk alienating your audience by repeatedly targeting them with generic messaging [2]. Instead, understanding your TAM allows you to focus your efforts on the right areas and identify customer groups that deserve closer attention during segmentation.
It’s important to distinguish TAM from related concepts like SAM (Serviceable Addressable Market) and ICP (Ideal Customer Profile). TAM shows the full market opportunity - for instance, the entire UK cybersecurity market might be worth £5 billion. From there, SAM narrows the focus to what you can realistically serve, and ICP pinpoints the companies most likely to convert [5].
This hierarchy - TAM, SAM, and then ICP - lays the groundwork for precise segmentation. Start with TAM to grasp the full potential, refine it to SAM based on practical constraints, and then identify your ICP as the top-priority segment.
How to Calculate TAM for Emerging Tech Products
For emerging technologies, calculating TAM often requires a mix of methods since historical data may not exist. Here are three common approaches:
Bottom-up method: This is often the most accurate for new tech. It involves estimating the size of each customer segment and multiplying it by the average contract value. For instance, if targeting mid-sized manufacturers in the UK dealing with supply chain disruptions, you’d verify the number of such businesses through registries and databases [2], then multiply by your expected contract value. Although time-consuming, this method is grounded in real customer data. Interviews with 20-30 potential customers can provide insights into willingness to pay and adoption timelines [5].
Value-based method: This approach calculates TAM based on the economic value your solution delivers. For example, if your software saves customers £50,000 annually and there are 10,000 potential users, your TAM would be £500 million. This method works well for emerging tech by focusing on the unique value your solution provides.
Top-down method: Using industry reports and analyst data, this method starts with total market size and then applies a percentage to estimate your addressable portion. While quicker, it’s less precise for novel technologies since reports may not fully capture emerging trends.
For the most reliable results, combine the bottom-up and value-based methods. Together, they account for both market size and the specific value your technology offers.
Data sources for TAM research should include a variety of perspectives. Use data from the UK Office for National Statistics, trade bodies, and business registries to verify company counts and sector spending. Tools like LinkedIn and business intelligence platforms can help identify companies that match your target profile. Financial databases such as Bureau van Dijk or Companies House are useful for validating revenue-based calculations.
Competitive intelligence is also key. Analysing competitor websites, funding announcements, and customer bases can provide insights into market dynamics. If competitors in similar markets have much smaller TAM estimates, it might indicate your calculations need adjustment.
Finally, consider the adoption curve. Early adopters are a critical segment for emerging tech, as they’re more willing to take risks for competitive advantages [7]. However, assuming the entire TAM is immediately accessible overlooks the reality that adoption happens in phases, often taking 3-5 years for early adopters to pave the way.
For B2B SaaS companies, Average Contract Value (ACV) is a crucial metric. Enterprise segments often aim for ACVs above £100,000, meaning just 1,000 customers could achieve viability [6]. Many companies start smaller, targeting customers with £10,000 ACVs, and scale as they refine their product-market fit.
Validation is essential. Break your TAM into smaller, verifiable components. For instance, if targeting mid-sized manufacturers, confirm the number of such companies using registries [2]. Compare your market penetration assumptions with industry adoption rates. If your plan requires capturing 40% of TAM in five years, but industry trends suggest 5-10% is more realistic, your TAM needs recalibration.
Consolidate these methods into a solid framework before moving to the next step: segmentation.
Common Mistakes in TAM Estimation
Emerging tech founders often overestimate their TAM by including customers who lack the budget, authority, or need for the solution. Assuming "everyone could benefit" inflates TAM figures and doesn’t reflect actual demand. Instead, focus on identifying who will actually buy.
Overlooking niche-specific constraints is another common error [5]. Factors like regulatory requirements or outdated infrastructure can limit your addressable market. For instance, a cybersecurity solution requiring cloud infrastructure won’t appeal to companies still using on-premises systems, no matter their theoretical need.
Misjudging adoption timelines is another pitfall. Emerging tech adoption follows predictable patterns, with early adopters making up only 13.5% of the eventual market. Assuming your entire TAM is immediately accessible ignores these dynamics [6].
Relying solely on top-down analysis can lead to unrealistic estimates. While industry reports provide useful benchmarks, they may not fully account for disruptive technologies or adoption barriers. Always validate these estimates with customer conversations.
Confusing TAM with SAM can result in wasted resources. Focus on a narrower SAM where you can build credibility and generate case studies [5].
Failing to segment within TAM is another oversight. Not all potential customers are equally valuable. Certain industries, like healthcare or financial services, might have higher adoption rates or willingness to pay [2]. Recognising these differences helps prioritise your efforts.
To avoid these mistakes, use multiple methodologies and validate assumptions through customer conversations. Document which segments are included or excluded from your TAM and why. This transparency is invaluable as you refine your segmentation.
TAM isn’t fixed. Reassess it regularly, especially when market conditions shift. Regulatory changes, new competitors, or feedback revealing unexpected use cases all warrant recalculations. If actual customer acquisition rates deviate significantly from TAM assumptions, review your strategy immediately.
For B2B markets, precision in TAM definition is especially critical. Firms like Twenty One Twelve often conduct detailed market research to establish realistic TAM estimates before diving into segmentation [2]. With an accurate TAM, you can efficiently target high-priority accounts without wasting resources.
Once you’ve nailed down your TAM, you’re ready to move on to defining segmentation dimensions.
Step 2: Identify Key B2B Segmentation Dimensions
Once you've outlined your Total Addressable Market (TAM), the next step is to narrow your focus further. Segmentation helps you zero in on high-value micro-segments by using firmographics, technographics, and needs-based approaches.
Gone are the days of broad, generic groupings [2]. Instead, blending multiple segmentation dimensions allows you to develop more precise micro-segments. These methods - firmographics, technographics, and needs-based segmentation - offer a comprehensive view of your target market. Together, they lay the groundwork for the targeted strategies discussed in upcoming steps.
Firmographics: Segment by Company Characteristics
Firmographic segmentation is all about categorising companies based on observable traits like industry, company size, revenue, and location [3]. Think of this as your starting point for filtering the market.
For example, a cybersecurity startup might focus on industry and company size to account for varying regulatory demands and budgets [4]. Larger enterprises often require higher-value contracts - think £100,000 or more for B2B SaaS companies [6]. On the other hand, smaller businesses might start with contracts closer to £10,000 as you work to refine your product–market fit.
Key firmographic factors include:
Industry vertical
Geographic location
Annual revenue
Growth trajectory
But firmographics alone won’t give you the full picture. Two mid-sized manufacturers might look identical on paper but differ greatly in their technology use and challenges [2]. That’s why additional segmentation layers, like technographics, are crucial - especially for industries like financial services and technology, which demand more nuanced approaches.
Technographics: Assess Technology Adoption
Technographic segmentation digs into a company’s technology stack, cloud adoption, digital transformation progress, and overall openness to innovation [2]. Companies already using cloud platforms and multiple SaaS tools tend to be more receptive to adopting new technologies [2]. These businesses not only show a willingness to invest in innovation but also have the internal capacity to integrate new solutions effectively [2].
When evaluating prospects, consider:
Whether they use cloud-based or on-premise systems
Their ability to integrate new tools
Where they stand in their digital transformation journey
Signs of readiness include robust cloud adoption, a compatible software stack, and high digital maturity. These indicators help you identify organisations best positioned to adopt your solution.
Needs-Based Segmentation: Address Specific Business Challenges
Needs-based segmentation focuses on the unique pain points, motivations, and goals of your prospects [9][10]. This method helps you pinpoint the exact problems your potential customers are trying to solve.
Common pain points include issues like supply chain disruptions, cybersecurity threats, compliance challenges, inefficiencies, and digital transformation hurdles [2]. But these challenges often manifest differently. For instance, a mid-sized manufacturer in the Midlands dealing with supply chain issues is in a very different segment from a large European manufacturer prioritising sustainability [2].
To uncover these needs, use tools like:
Customer interviews
Industry reports
Case studies
Surveys
Look for patterns that reveal clusters of prospects facing similar challenges. As Twenty One Twelve notes [1]:
"Your prospects are smart, busy senior leaders. They've seen every marketing trick in the book. You feel they are unmarketable and completely resistant to sales engagement."
This makes needs-based segmentation essential. Instead of bombarding prospects with generic sales pitches, you can deliver tailored messages that directly address their challenges [1]. For example, one segment might prioritise speed and automation, while another focuses on data security and compliance [5].
Consider factors like:
The intensity of pain points, which influences urgency and willingness to invest
Decision-making criteria across technical, financial, and executive stakeholders
Risk tolerance, noting that early adopters are more open to implementation risks, while the early majority prefers proven solutions [7]
Analysing your top-performing clients can also reveal shared challenges [10]. This process helps you identify which problems your solution addresses most effectively and which segments are worth prioritising.
For complex B2B markets, creating well-defined positioning frameworks is crucial to navigating diverse buyer needs [1]. By combining insights from firmographics, technographics, and needs-based criteria, you can craft highly targeted micro-segments. Instead of targeting broad categories like "manufacturing companies", you could focus on "mid-sized manufacturers with legacy ERP systems facing supply chain disruptions and seeking automation solutions" [2]. This level of specificity not only addresses your prospects’ core concerns but also builds trust and shortens the sales cycle.
The secret lies in layering these dimensions effectively. Start with firmographics to define your addressable market, use technographics to identify digitally advanced organisations, and overlay needs-based criteria to focus on prospects facing challenges your solution can solve. This approach creates actionable, high-value segments that drive impactful marketing and sales efforts.
Step 3: Prioritise Segments for Maximum Impact
After defining your segmentation dimensions, it’s time to focus your efforts strategically. You’ve already outlined your Total Addressable Market (TAM) and identified key segments based on firmographics, technographics, and needs-based criteria. Now comes the pivotal question: which segments should you prioritise first? Trying to target everyone at once can overstretch your resources and weaken your overall impact [6].
Evaluate Segments Using Clear Criteria
To prioritise effectively, you need a structured, data-driven approach. Each segment should be assessed across multiple dimensions to determine where your tech solution can gain traction most quickly.
Market size: Estimate the total opportunity in each segment by calculating the number of potential customers and their average contract values.
Growth potential: Focus on segments with rapid expansion - those growing at 15% or more annually often provide better long-term opportunities.
Competitive intensity: Look for underserved segments with fewer than three direct competitors. These areas often lead to quicker sales cycles and healthier margins [2].
Adoption readiness: Gauge how prepared and willing prospects are to adopt new technology. Consider factors like existing infrastructure, decision-making speed, and openness to change [2].
Use a weighted scale (1-5) to rate each segment on these factors, creating a composite score that highlights where the best opportunities lie. This objective ranking helps you allocate resources where they’ll have the most impact.
Incorporating predictive analytics can refine this process further. Predictive models analyse engagement data (e.g., website visits, content downloads), technographic signals (like software purchases or tech stack changes), and intent signals (such as search behaviour or job postings). This allows you to identify high-converting accounts within each segment, rather than assuming all companies behave the same way [2].
Think of segments as portfolio assets: some deliver quick wins, while others promise long-term growth [11]. For emerging tech companies with limited resources, it’s often wise to allocate 60-70% of your budget to mature segments with strong purchase intent and shorter sales cycles. These segments generate near-term revenue and valuable case studies. Meanwhile, invest 30-40% in high-potential segments with strong growth trajectories but longer adoption timelines [11]. This balanced approach ensures you’re not just chasing immediate gains at the expense of future opportunities - or vice versa.
Once you’ve assessed your segments quantitatively, the next step is to focus on early adopters to gain momentum.
Focus on Innovators and Early Adopters
Using the adoption curve framework, markets can be divided into five groups: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards [7]. For emerging tech solutions, your initial focus should be on Innovators and Early Adopters. These groups are essential for validating new technology.
Unlike consumer products, B2B SaaS solutions rarely go viral. Instead, deliberate customer acquisition strategies are necessary [6]. Winning over Innovators helps create momentum, which in turn attracts Early Adopters. Satisfied customers from these groups provide testimonials and case studies that make your offering more appealing to the Early Majority [6].
To identify segments with these buyer personas, examine technology adoption patterns. Companies already using related or complementary technologies are often more open to innovation. Early adopters frequently cluster in specific industries, geographies, or company sizes. Venture-backed firms or those located in tech hubs are often quicker to embrace new solutions [2]. Additionally, with nearly half of all B2B buyers now being millennials, segments with younger decision-makers may represent early adopter opportunities [11].
After securing Innovators and Early Adopters, shift your focus to the Early Majority [6]. These buyers require proof of value but are more accessible once you’ve demonstrated success through case studies and testimonials. Avoid targeting Late Majority and Laggards during the early stages. These groups demand significant convincing, have unrealistic expectations, and are resource-intensive [6].
Geographic and industry filters can help refine your prioritisation even further. Consider regions where you can easily provide support, meet regulatory requirements, and offer language compatibility [7]. Similarly, focus on industries that align with your solution’s strengths. For instance, a cybersecurity product designed for healthcare should target providers and insurers rather than manufacturing firms [7].
Your current customer base is another valuable resource for prioritisation insights. Conduct an 80/20 analysis to identify the top-performing customers - 20% of your clients likely generate 80% of your revenue [10]. Look for shared characteristics such as industry, company size, and buying behaviours to pinpoint which problems your solution solves most effectively. This analysis can guide you toward the most promising segments.
Finally, set realistic timelines for market development based on the adoption curve [7]. Innovators may convert within weeks, Early Adopters within months, and the Early Majority within six to twelve months. Understanding these timelines helps you allocate resources effectively and set achievable expectations for your sales pipeline.
Segment prioritisation isn’t static. As your business evolves and you achieve Product Market Fit, your segmentation approach will shift. Firmographics, technographics, and demographics will take centre stage [6]. Use the data and insights you gather to refine your strategy, focusing on segments that convert quickly, generate high lifetime value, and require minimal support resources.
Step 4: Build Ideal Customer Profiles (ICPs)
Creating an Ideal Customer Profile (ICP) is essential for tailoring your sales and marketing strategies. An ICP goes beyond just listing company traits - it’s a detailed guide that identifies the organisations most likely to adopt your technology, achieve success with it, and become loyal advocates.
By leveraging the insights from your segmentation work, you can build an ICP that aligns sales, marketing, and product development efforts. This alignment ensures your messaging is more precise and your conversion rates improve [3]. For tech companies navigating complex B2B markets, this clarity is critical. Without it, teams risk wasting time on prospects that don’t convert while missing out on high-value opportunities. A well-crafted ICP lays the groundwork for identifying the traits that define your most successful customers.
What to Include in an Ideal Customer Profile
An effective ICP includes measurable and descriptive attributes that paint a clear picture of your ideal customer. Start with firmographics - key details like company size, industry, and location [3]. For instance, you might target mid-sized, financially stable companies in industries such as healthcare or financial services, located in the UK or Western Europe.
Next, focus on the pain points and challenges your solution addresses [3][4]. Instead of broadly categorising a segment as "mid-sized manufacturers", dig deeper into their specific struggles, like supply chain visibility issues or inefficient inventory systems. This level of detail helps you craft more targeted messaging.
Your ICP should also describe the decision-making roles and buying committees involved. B2B purchases often require input from multiple stakeholders, each with unique priorities. For example:
Executives may prioritise ROI and strategic fit.
Technical teams focus on integration and security.
End-users value usability and support.
Procurement specialists care about contract terms and vendor reliability.
Clearly outline budget constraints, purchasing authority, and the typical structure of the buying committee [3].
Incorporate technographics, identifying the technologies your ideal customers already use. This includes assessing how well your solution fits with their existing systems and understanding their overall tech maturity [5]. For example, a fintech company targeting lending platforms might note whether prospects use legacy systems or modern cloud-based tools like CRM platforms or API integrations.
Consider other factors like the growth stage of target organisations. For instance, you might differentiate between fast-growing startups and established enterprises with longer decision cycles. Similarly, align your ICP with the strategic goals of your prospects - such as businesses aiming for international expansion, if your solution supports market growth.
Lastly, for emerging tech companies, it’s helpful to assess an organisation’s innovation mindset and technology adoption patterns. Companies actively pursuing digital transformation are often more open to new solutions. Including details about their typical buying cycle can also help set realistic expectations for your sales pipeline.
With 66% of B2B buyers expecting personalised interactions [4], your ICP needs to be detailed enough to enable tailored engagement. Generic profiles won’t cut it - specific, data-driven ICPs empower your teams to target and convert the right prospects effectively.
Use Customer Data to Inform ICP Development
Your ICP should be rooted in data from your most successful customers. Start by identifying accounts with the highest lifetime value, fastest sales cycles, and strongest product adoption [12]. These customers serve as benchmarks for building your profiles.
Look for firmographic patterns in this group - common industries, company sizes, or geographic clusters that indicate where your solution resonates most naturally.
Analyse behavioural data to understand how these customers discovered your product, which marketing channels engaged them, and what content influenced their decisions [2]. This insight helps you identify similar prospects earlier in their buying journey.
Technographics also play a key role. Evaluate the technologies your best customers rely on and how your solution integrates with their systems. This information sharpens your ICP and your messaging.
Don’t overlook qualitative insights from your sales team. Their experiences can reveal factors like concerns raised by prospects or the internal champions who drove adoption. Conducting win/loss analyses can further clarify why certain prospects convert while others don’t [12]. If you serve multiple market segments, consider creating different ICPs for each group to address their unique needs and decision processes [2].
To refine your ICPs, track metrics like conversion rates, deal size, sales cycle length, and customer lifetime value for each profile [12]. Monitor engagement through indicators like email open rates, content downloads, and webinar participation - segmented by ICP characteristics. Combine this quantitative data with qualitative feedback from customer interviews, sales observations, and support interactions.
Finally, review and update your ICPs regularly - quarterly or bi-annually - to ensure they reflect current market conditions and your product’s evolution [3]. This keeps your profiles actionable and aligned with your goals.
Your ICPs should be dynamic tools that guide everyday decisions across sales, marketing, and product teams. By maintaining a clear, evidence-based understanding of your target customers, your organisation can operate more effectively and maximise its go-to-market efforts.
Step 5: Implement Segmentation in Marketing and Sales
Accurate segmentation and well-defined Ideal Customer Profiles (ICPs) are only effective if they are seamlessly integrated into your daily marketing and sales workflows. Building on your refined ICPs, the next step is to ensure segmentation insights are actively used in everyday operations, driving meaningful outcomes.
For emerging tech companies, precision and speed are critical when engaging prospects. Generic campaigns often fail to make an impact in competitive B2B markets, while personalised approaches demand coordination and consistency. By embedding segmentation into your core workflows, you can make it a natural and automatic part of your operations, ensuring your efforts translate into tangible results.
Align Sales and Marketing Around Segments
One common challenge with segmentation is the disconnect between sales and marketing teams. When these teams define target segments differently, prospects may receive mixed or conflicting messages, which can harm credibility and slow the sales cycle. For example, marketing might focus on industry verticals, while sales prioritises company size or decision-maker seniority.
To avoid this, it’s essential to establish a unified approach. Use the detailed ICPs and segmented dimensions you’ve already developed to create a shared framework. Form a cross-functional team with representatives from both sales and marketing to define segments using consistent language. Implement a shared taxonomy in your CRM and schedule regular reviews to update tactics based on real-time data.
Developing segment-specific lead scoring models can further align your efforts. These models should combine demographic factors - like company size, industry, and location - with behavioural signals, such as website activity and content engagement. This keeps both teams accountable and focused on the same objectives.
Tailor Messaging and Campaigns to Each Segment
Generic messaging rarely resonates in the B2B space. Prospects need to feel that their unique challenges are understood. This means crafting narratives that speak directly to the needs of each segment. For example, a cybersecurity firm might highlight compliance with healthcare regulations when targeting healthcare IT directors, while focusing on fraud prevention and regulatory reporting when speaking to financial services leaders. Even if the product remains the same, the value proposition must align with the priorities of each audience.
Your messaging should also reflect where prospects are on the adoption curve. Innovators are drawn to cutting-edge features and first-mover advantages, while early adopters need case studies to prove the technology works. Pragmatists, on the other hand, require evidence of reliability, seamless integration, and a strong return on investment.
Technographic segmentation can refine this further by identifying the tools and platforms prospects already use. Highlighting how your solution integrates with their existing systems can make your offering more appealing. AI-powered campaigns can also adapt in real-time, presenting ROI calculators to prospects exploring detailed specifications or emphasising competitive advantages when they view new features.
To support this, create segment-specific content libraries with resources like case studies, ROI tools, technical guides, and compliance documentation. Testing messaging prototypes with each segment can ensure your content addresses their specific needs and pain points effectively.
Measure the Effectiveness of Segmentation
Measuring the success of your segmentation strategy is crucial for identifying high-performing segments and adjusting your tactics. Use key performance indicators (KPIs) like conversion rates, acquisition costs, customer lifetime value, engagement metrics, sales cycle length, and win rates. Segmented dashboards can help you track these metrics and refine your strategy over time.
For emerging tech companies, monitoring adoption velocity - how quickly customers implement and gain value from your product - can indicate product–market fit within specific segments. Combining quantitative metrics with qualitative feedback from customer interviews and sales teams can help pinpoint the reasons behind underperformance, whether it’s due to messaging, lead quality, or sales execution.
Refine your segmentation strategy based on this data. If a segment defined solely by company size shows varied performance based on technology maturity, consider splitting it. Conversely, if two segments behave similarly, merging them could simplify your approach. Focus your measurement efforts on high-value segments to avoid being overwhelmed by unnecessary data.
For B2B SaaS companies targeting enterprise customers with contracts averaging £100,000 or more, a focused "elephant hunting" strategy might require just 1,000 paying customers to build a robust sales organisation [6]. Creating a Target Account List (TAL) from your segmented accounts can streamline account-based marketing by aligning sales and marketing around shared, high-priority targets [8].
Conclusion
Review of Key Steps
Achieving effective B2B market segmentation is essential for emerging tech companies aiming to find the right product-market fit and scale efficiently. This process starts with defining your Total Addressable Market (TAM) to measure the true potential of your market and avoid overestimating your opportunities.
From there, identify the segmentation dimensions that matter most for your audience. Firmographics help you understand company traits like size, industry, and location, while technographics provide insights into the technology stacks your prospects already use. Needs-based segmentation focuses on pinpointing the specific challenges that influence purchasing decisions.
Prioritising your segments ensures that your resources are directed towards the most promising opportunities. Start by targeting innovators and early adopters - those actively seeking new solutions and requiring less persuasion compared to later-stage buyers [6][7].
Creating detailed Ideal Customer Profiles (ICPs) is the next step. These profiles should combine firmographic, technographic, and behavioural data to paint a clear picture of your target audience, why they need your solution, and how your product can meet their needs.
Finally, success hinges on aligning segmentation with both marketing and sales efforts. This involves crafting tailored messaging, building segment-specific content libraries, and tracking performance metrics to measure success and identify areas for improvement. Together, these steps provide a strong foundation for ongoing refinement as your market evolves.
Refine Segmentation as Your Business Grows
Once your segmentation strategy is in place, it’s important to treat it as a dynamic system that evolves alongside your business. Customer behaviours shift, market pressures change, and the competitive landscape continues to develop. Messaging that resonates with early adopters may not be as effective for the early majority [6].
Make it a habit to review your segmentation strategy quarterly. Analyse performance data, monitor changes in customer behaviour, and gather feedback from your sales and marketing teams to identify which segments convert the fastest and deliver the highest lifetime value.
Stay ahead by keeping an eye on emerging trends that could influence your market. For instance, an increased focus on AI integration, sustainability, or new regulatory requirements could reshape how prospects evaluate solutions. Companies operating in complex B2B sectors must maintain a sharp focus by using strategies like account-based marketing, strategic partnerships, and targeted content to reach hard-to-access audiences [1].
"Effective positioning frameworks are essential for SaaS companies to navigate complex B2B markets and meet diverse buyer needs."Henry McIntosh [1]
Think of segmentation as a living, adaptable strategy. If a segment defined by company size shows varying performance based on technology readiness, consider dividing it further. On the other hand, if two segments display similar behaviours, merging them could streamline your efforts and boost efficiency.
The most successful companies continuously revisit and refine their segmentation strategies to stay aligned with market dynamics. By applying these principles, you can ensure that your marketing and sales initiatives remain effective, driving measurable pipeline growth and turning prospects into qualified leads.
FAQs
How can emerging tech companies calculate their Total Addressable Market (TAM) without historical data?
Emerging tech companies can estimate their Total Addressable Market (TAM) by conducting thorough market research and tapping into industry data. Start by pinpointing your target audience and gaining a clear understanding of their needs. You can use publicly available reports, analyse competitors, and seek insights from industry experts to determine the size of your potential market.
If you're lacking historical data, a bottom-up approach might be your best bet. This method involves estimating the number of potential customers within your target market and multiplying that figure by the average revenue per customer. Alternatively, the top-down approach looks at overall industry revenue and narrows it down to your specific niche.
For more intricate B2B markets, collaborating with specialists like Twenty One Twelve Marketing can be a game-changer. Their customised strategies for reaching niche sectors can provide valuable insights, helping ensure your TAM calculations are accurate and aligned with your business objectives.
What are the differences between firmographic, technographic, and needs-based segmentation, and how can they work together?
Firmographic segmentation involves grouping businesses based on characteristics like their industry, size, revenue, or geographic location. Technographic segmentation, meanwhile, digs into the specific technology tools or platforms a company uses, shedding light on their digital habits and preferences. Then there’s needs-based segmentation, which zeroes in on customer groups by analysing their unique challenges, goals, or priorities, making it easier to tailor your approach.
When these methods are combined, they provide a fuller picture of your target audience. For instance, firmographics can outline broad business categories, technographics can highlight their tech-related requirements, and needs-based insights ensure your messaging directly tackles their specific concerns. Together, these strategies enable emerging tech companies to identify promising opportunities and craft marketing efforts that truly connect.
Why should emerging tech companies prioritise Innovators and Early Adopters, and how can they identify these groups in their target market?
Focusing on Innovators and Early Adopters is essential for emerging tech companies. These are the people and organisations who are more open to trying out new technologies and can offer valuable feedback. Their early support not only helps validate your product but also creates buzz, setting the stage for wider market acceptance.
To find these key groups, start by examining your target market for individuals or businesses that show a strong interest in exploring new solutions and taking calculated risks. Signs to look for include active involvement in industry events, enthusiasm for cutting-edge technologies, or a track record of adopting new products. Tools like customer surveys, market research, and social listening can be incredibly useful for identifying these early supporters within your audience.
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