Why purchase segmentation is the key to revenue growth

What is purchase segmentation?

  • Identify intelligent account management opportunities that align with sales goals/quota assignments and territory allocations;
  • Define a sales strategy that aligns with corporate objectives, while increasing sales agent productivity and outcomes;
  • Align resources based on account potential. When sales reps have too many accounts to manage, they can’t always maximise opportunities from those with the most potential. Segmentation reduces the risk of missing opportunities as a result of territory allocation and misalignment.

How to use purchase segmentation to increase revenue?

  • Which customers spend the most;
  • Which customers spend more often than others;
  • Which customers show the most potential to spend more;
  • And from our prospects pipeline, which fit a similar profile (likely to spend, spend often and could be a valuable account)?
  1. Prioritize accounts with a high propensity to buy (fairly frequent high-value purchases) and a high potential to keep spending this way.
  2. Nurture accounts with a high propensity to buy (infrequent high-value purchases) and a low potential (to increase the number of times they make purchases, or the number of products/services they use).
  3. Monitor and nurture accounts with a low propensity to buy (infrequent low-value purchases) and a high potential (viable prospects to increase spend and purchase frequency).
  4. Reduce the priority ranking and therefore time spent with accounts that have a low propensity to buy and a low potential.

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Jói Sigurðsson

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