Chapter IV

Segmenting in the Right Way

How to properly segment a B2B Network, decreasing Gross-to-Net while increasing partners engagement?

The capability to identify which Channel Partner has the highest growth potential leads inevitably to a superior performance. At a more sophisticated level, the ability to shape a Channel niche that can provide a superior customer experience leads to a privileged competitive position. We can call this a competitive advantage and this is what we are after.

It all starts from developing the skills to understand better and deeper our partners. In theory, profiling and segmenting should be a straightforward task. However, effective segmentations are not so common. Many marketers disproportionately rely on financial parameters (as they are quantifiable and easily available) and do not consider other relevant aspects such as behavioral traits, go-to-market capabilities and operational models. By doing so they might end up with a wrong prioritization of their channel partners and hence fail in allocating incentives, setting targets and defining Credit Policies.

Chapter IV provides a comprehensive segmentation methodology enriched by several examples and frameworks. By adopting this approach (or by incorporating these insights into your sector-specific methodology) you will be able to combine behavioral and structural dimensions and start building a resilient competitive advantage.

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