Territory Planning &

Customer Segmentation

As SaaS businesses grow, customer segmentation and territory planning must evolve. While startups need to understand basic customer characteristics, later-stage companies require more sophisticated treatment models for different customer tiers to match their expanding customer base.

Applying experiences across funding stages and CS maturity levels provides proven data points and strategies for adapting teams to an evolving customer base. Poor customer segmentation leads to ineffective communication, inequitable workloads, and higher churn. Excellent segmentation enables effective use of CRM and marketing tools, personalizes the customer experience, and provides a clear view of the state of your customers and business.

Changes to customer tiers and territories can be beneficial, but if not done intentionally, they can disrupt the business and create future issues. Territory changes affecting partnership pairings may prompt emotional responses from tenured CSMs and long-time customers. Revenue and adoption metrics alone don't tell the whole story – successful transitions demand methodical assessment and modeling to minimize disruption to account teams and customers.

Below are the key steps I take with SaaS companies during segmentation and territory planning exercises. These steps are adaptable based on Climate Tech company size and stage:

Customer Segmentation Process

  • Assess Current State

    Before changing the segments, tiers, and territories for your customers and teams, an assessment of customer attributes provides the info needed for later decisions. We establish a foundational truth on the customer base using CRM, CSMs input, surveys, and Customer Journey mapping data. With this clarity, we can agree on a desired state, roadmap, and timeline for planning and changes.

  • Forecast and Growth Modeling

    Customer segmentation must be based on the current and future state of customers as your base grows. We can predict how customer territories will evolve by analyzing customer growth models, revenue forecasts, and churn assumptions. Additional considerations like account management plans and technology assumptions ensure all resources are included in the future segmentation.

  • Workload and Deliverables Audit

    Territory planning needs to consider the workload of customer-facing teams and expected results. Even without timecards, a simple staff assessment helps balance perceived and actual team capacity. Layering top-down planning of desired actions with bottom-up time estimates gives a realistic view of staffing challenges and opportunities.

  • Customer Cohort Analysis

    Using the prior data and conclusions, tables and dashboards will distill the options for new segmentation and territories. Additional enrichment services or customer research may help fill knowledge gaps. Sampling analysis can save time and allow us to infer the larger population if the customer base is large enough. Internal or industry benchmarking should also be considered.

  • Staffing Scenarios and Mapping

    Customer Success teams often rush to remap territories to align with current business priorities. Prior research and analysis inform the pros/cons of different scenarios and make budgeting and staffing considerations more logical and factual. Internal stakeholders can provide input on the future state to assist in the change management process.

  • Transition Planning and Handoffs

    A structured timeline and logical process for customer transfers is critical for maintaining a positive customer experience. We need a project plan, worksheets, and an aggressive but realistic timeline. Clear documentation, exception criteria, and customer communications ensure smooth transitions. Planned checkpoints verify adherence to new territory assignments while reinforcing the long-term benefits to customer success.

✺ Frequently asked questions ✺

  • The classic answer of “it depends” applies here based on the steps we decide to include in the process and the complexity of your customer base and desired end state. I’ve completed a re-segmentation in as little as 2 weeks and have worked on other projects that have take place over one business quarter.

  • The goal of taking the steps that are outlined above is to avoid any negative disruption to your business and customer experience. There will be changes for people to adapt to, but we’ll work to include those in our change management plans.