Segmenting Leads Improves sales – What You Need To Know

What comes to your mind when you hear the phrase segmenting your leads? Segmenting and sorting things may seem like a lot of work, but the truth is it’s not. In fact, market segmentation can actually boost your sales when you do it right.


Below are three main points about segmentation that can help you increase your Return of Investment and your overall business productivity.


Why is segmentation helpful for a business?

Think of your business as one big supermarket. An organized super mart has well-arranged aisles with dedicated labels like “Cereal,” “Fresh Produce,” “Canned Fruit,” “Canned Vegetables” and a whole load of other sections. These sections help shoppers get to the products they want, without having to search the entire store.


Bringing order and convenience to shoppers and organizing a supermart can boost your sales at the same time gain more customers.


Responding to Different Interests

Like the example above, your site visitors respond to topics, promotions, and products differently. Not all of your customers like blunt commercials. They might prefer a discrete selling style. When it comes to your products, others like bundles, instead of buying one piece. Even in emails, not everyone like coupons and discounts. They’d rather you give them something for free.


Every single person on earth is different. Even identical twins, despite their looks, grow up to have distinct interests. But, despite the different taste in music or art, they do have a general standing point. For example, a 45-year old mom who’s health-conscious would go to the “Organic Food” aisle, while a 25-year old college student who’s also health conscious would pick products from that aisle as well.


Benefit of Segmenting

When you separate your customers based on what they like, e.g., organic foods and lactose-free products, you’re able to target each buyer more efficiently because you know what commodities they are going to purchase.


If you sell produce that’s been sprayed with chemical pesticides to an Organic Foods buyer, then you’ll not only get a complaint, but you’ll get backlash for it with bad publicity. Likewise, selling dairy goods to someone who has Lactose Intolerance will also get the same result. You’ll lose sales and lose buyers.


Through segmenting you’ll be able to create ads, site content and even products that generate more sales. Your efforts in trying to sell your products won’t also go to waste because you are releasing material that’s made for people who:

  • Has bought from you
  • Is in the process of buying from you
  • Considering buying from you
  • Is interested in your product

Leads and Segmentation

Understanding Leads

Leads refer to people who are possible buyers, note the term possible. It means that they aren’t , fully convinced to purchase from you yet. Leads are usually classified into two, hot leads and cold leads.

Hot leads are site visitors who are considering buying your product but aren’t totally convinced yet. Meanwhile, cold leads are people who know your business and visited your site a couple of times but aren’t really into purchasing what you offer.

Here’s a table of some of the behaviours that each lead tends to do, giving you a better idea.

Cold LeadHot Lead
  • Browses multiple pages in your website but with no clear intent.
  • Found out about your site through organic search.
  • Usually subscribes but after a while unsubscribes.
  • Doesn’t open your emails too often.
  • Inquires about prices but doesn’t buy anything.
  • Heads straight to your product pages.
  • Usually comes directly from your ads instead of organic searches.
  • Subscribes to your newsletter and remains a subscriber even after many months.
  • Inquires about the product and does a follow-up.
  • Opens the emails you send regularly

Shorten Your Sales Cycle

As you can see from the table above, hot leads are very near the decision phase. All that a hot lead needs is a phone call or super useful material to help them make up their mind. Cold leads, on the other hand, need a little bit more work, they need more material and persuasion for them to even consider what you offer.


By knowing what type of customer you are dealing with you won’t have to exert so much effort just to bag a sale. Because you know that a hot lead doesn’t need too much material such as ads, emails, and promos to procure your merchandise or service. You can lessen your typical sale cycle from let’s say one year to 8 months or less depending on your team’s convincing ability.


How Marketing Automation Makes Segmenting & Sales Easy


What if your one-year sales cycle is cut in half? How many sales can you land annually with a 6 month sales cycle? Marketing Automation can help you do both segmenting and follow-up a lot faster than with just traditional marketing.



  • Accuracy of Information


A Marketing Automation tool gives you accurate real-time data about what is happening within your website. It can track visitor activities such as:

  • checking out your product page
  • downloading a PDF from your resources
  • checking product information
  • knowing what pages they visit

All of these and many more data gathered in real-time. So, the data you get is accurate and valid which will be very useful in planning your campaign.


  1. Grouping your Customers

Marketing Automation makes the whole segmentation analysis easier by showing you exact accurate data. With this tool, you can clearly see which of your customers are hot leads and which are cold Leads. You can even go deeper and group them based on buying power from individual customers to those who own businesses.


  1. Quicker Follow-up

With Marketing Automation, you can send emails and promotional material to your hot and cold leads without having to do it manually. Which means you won’t have to send 1000 distinct emails to your potential buyers one by one. Because the tool will do it for you and even send a follow-up email if they don’t respond.


  1. Better Measurement of Results

The results of your marketing efforts can easily be tracked using a Marketing Automation tool. Since you can establish market segmentation, you can clearly view which type of promotional material works for your leads. You can see how many hot leads became cold due to poor advertising content, or irrelevant discounts. You can also track how many convert.


Finally, you can track how many deals you sealed from all the leads you got. For example, out of the 570 leads 300 of them became customers. All the information you gathered helps in improving your next campaign, so by the time you launch new ads you can transform your remaining 270 leads into lifelong customers.


Final Thoughts


Sorting your customers allows you to customize your marketing style to their demands, which in turn grants you a shorter sales process and more returns in your investment. With the use of a Marketing Automation tool, you can cut the sorting process and sales cycle even shorter, boosting your team’s productivity and your business’s revenue.