Targeted lead generation strategies allow companies to focus their sales and marketing effort on specific customer segments. This helps optimize resources and yield better outcomes.
What is Targeted Lead Generation?
|Benefits of Targeted Lead Generation|
|Improves Lead Quality|
|Fills the Sales Funnel with Qualified Leads|
Targeted lead generation breaks down large markets into smaller segments, allowing companies to focus sales and marketing efforts on a specific customer group.
These are the top reasons why targeted lead generation is essential for businesses:
- Improves lead quality: Targeted lead generation filters out leads with less probability of becoming paying customers.
- Optimize resources: It’s not strategic for companies to follow up on all the leads that enter their sales and marketing funnel because not all will convert. Focus and prioritize your resources on leads with higher chances of becoming paying customers.
- Fills the sales funnel with qualified leads: Companies with more qualified leads are less likely to run out of sales opportunities.
Types of Market Segmentation
|Type of Market Segmentation||Variables|
|Behavioral Segmentation||User status, brand interaction, buying habits|
|Demographic Segmentation||Age, income, gender, occupation, family status|
|Geographic Segmentation||Area code, neighborhood, city, region, country|
|Psychographic Segmentation||Attitudes, opinions, interests, social status, lifestyle, personality.|
|Firmographic Segmentation||Number of employees, location, revenue, industry|
|Value Segmentation||Purchase frequency, quantity, quality|
|Seasonal Segmentation||Seasonal behaviors|
|Lifestage Segmentation||Consumer Life Stage|
|Generational Segmentation||Gen Z, Baby Boomers, Millennials, Generation X, Silent Generation|
Market segmentation is the process of dividing a company’s target market into an approachable group. It aims to create a subset of customers to present products and services in the most appealing way possible.
Sales and marketing teams use this practice in different ways. For marketing teams, it allows the creation of content that resonates with a particular segment, while salespeople use it to identify buying signals for each market segment and discover new sales opportunities.
These are the different types of market segmentation:
- Behavioral Segmentation: The behavioral patterns of customers as they make buying decisions are the main focus of this segmentation. The variables include user status, brand interaction, and buying habits.
- Demographic Segmentation: The traits for demographic segmentation include age, income, gender, occupation, and family status. Creating this type of segmentation allows companies to better understand their target audience’s wants and needs.
- Geographic Segmentation: The common factors for geographic segmentation are area code, neighborhood, city, region, and country.
- Psychographic Segmentation: This segmentation approaches groups of consumers based on psychological characteristics such as attitudes, opinions, interests, social status, lifestyle, and personality.
- Firmographic Segmentation: This is a common segmentation among B2B companies. It focuses on companies that can potentially become customers instead of focusing on individuals. This segmentation includes the number of employees, location, revenue, and industry.
- Value Segmentation: This segmentation divides the market based on the customer’s transactional worth using data like purchase frequency, quality, and quantity.
- Seasonal Segmentation: Major holidays significantly impact consumers’ buying behaviors. Seasonal segmentation creates a subset for these behaviors, allowing companies to develop better strategies for upcoming holidays.
- Lifestage Segmentation: Consumers have different needs and preferences in particular life stages. For example, first-time parents are more likely to buy cribs and baby apparel, while fresh graduates might look for affordable furniture and decor for new apartments.
- Generational Segmentation: Customers from the same generation are more likely to have particular shared preferences, traits, and beliefs. By segmenting generations, companies can gain valuable insights into their target audience. The categories for this segmentation include Gen Z, Baby Boomers, Millennials, Generation X, and the Silent Generation.
Best Strategies for Targeted Lead Generation
|Social Media Marketing|
|Contact Form Optimization|
Most targeted lead generation strategies are outbound and designed for a specific group of people. Here are some of the most effective targeted lead generation strategies for marketing teams and salespeople:
Appointment setting is a direct lead generation strategy where Sales Development Representatives (SDRs) contact leads to book appointments with Account Executives (AEs).
The lead qualification process compares leads that enter the sales and marketing funnel with the company’s buyer persona and Ideal Customer Profile (ICP). A buyer persona refers to a research-based profile representing the company’s ideal customer, while an ICP is a profile describing the company that is likely to benefit the most from your offerings.
SDRs determine whether the lead fits the company’s ICP by talking to them on the phone and asking questions such as:
- What are your pain points?
- Do you have current solutions for your pain point? How effective are they?
- Are you a decision-maker in your company?
- How big is your company?
- What industry are you in?
If the lead fits, SDRs will persuade them to book appointments with AE, who’ll work on closing the deals.
A successful appointment setting campaign can supply your sales pipeline with qualified leads who have higher chances of becoming paying customers. It also unburn AEs, allowing them to focus on nurturing and converting those leads.
Social media marketing is a strategy used by marketing teams to generate diverse leads, but salespeople can also leverage it to generate targeted leads as part of appointment setting strategy. Social media platforms offer tools and services that allow market segmentation to be more manageable, making it easier for salespeople to connect and engage with their target audience.
LinkedIn is the best platform of choice if your target audience is professionals and decision-makers. The platform allows you to run ads that are only visible to your target audience. This feature helps increase visibility and engagement with leads while optimizing the ad budget.
Another LinkedIn feature that helps salespeople generate targeted leads is the sales navigator. It allows you to personalize algorithms to reach the right people and increase brand visibility.
Some social media platforms offer premium and business accounts that allow you to unlock additional features. Most of these features provide valuable insights into who is showing interest in your brand and how your advertising campaigns are performing.
The mailing list generated by your marketing team is often diverse since it’s collected from various sources. Salespeople can use this list to generate targeted leads with segmentation.
Email segmentation divides an email list into specific categories. This allows you to send relevant content to the right people and nurture them to the next stage of the buyer’s journey. It also helps reduce bounce rates while increasing open and click-through and engagement rates.
Manually segmenting email can be time-consuming, especially if you have a lot of contact info in your address book. The best solution for this issue is to use Customer Relation Management (CRM) tools with segmentation features.
Most of these tools automatically segment your email list according to your input categories. Some even have features that automatically send responses based on the reader’s interaction with the email.
Contact form optimization
You can use contact forms to generate targeted leads by using a qualifying mechanism. A practical method is to include questions that allow you to determine whether the lead fits your company’s ICP or Buyer persona.
You can ask the following questions on your contact form:
- Revenue size
- Employee count
- Solutions you’re interested in
These questions will automatically give you an idea of whether the lead is the right fit for your company.
Long and complicated forms are inconvenient, causing website visitors to abandon them. Make your forms short and only add necessary questions.
Optimizing your contact forms allows you to get more than just contact information. It also helps save effort and increase the quality of your lead list.
Tips on How to Build a Targeted Lead Generation Strategy
Every company has a target audience, which means different target lead generation strategies resonate with varying types of businesses. Here are tips for building a strategy tailored to your company’s needs and objectives:
Define your ICP and buyer persona
You should clearly define your ICP and buyer persona to have a good understanding of your target audience.
Your ICP will tell you which companies you should target, allowing you to allocate your resources better. The buyer persona will give you a deeper understanding of the people you should target.
Defining your ICP and buyer persona requires significant research. You can use tools like CRM software to make this task faster and easier.
Set up proper qualification
A proper qualification process allows companies to optimize resources and effort through sales funnel streamlining. Unfortunately, many companies lack proper lead qualification mechanisms, causing them to pursue leads less likely to convert into paying customers.
Personalize your engagements
You can target your lead generation strategies by creating room for personalization. For example, if you plan to use email marketing, make sure to address the receiver by their name instead of just “maam/sir”. You can even take it to another level by mentioning something about them in the content.
Successful targeted lead generation strategies can yield better results and make leads more likely to convert into sales. Market segmentation plays a crucial role in these strategies, allowing salespeople to leverage the right marketing content to move leads to the next phase of the buyer’s journey.