If you’re running B2B sales and want pricing that actually makes sense for different types of customers, you need solid segmentation. But let’s be honest: most “segmentation” is just a spreadsheet headache, and most software doesn’t make it any easier. This guide walks you through setting up customer segmentation in Vendavo, with zero fluff and a focus on what actually works for sales teams.
This isn’t for the armchair theorist. You’re here because you want your sales team to stop guessing, and you want pricing that’s tailored but manageable.
Why Bother with Customer Segmentation?
Let’s get this out of the way: Segmentation isn’t magic. It won’t fix bad data, broken processes, or a team that ignores pricing guidance. But when done right, it helps you:
- Offer prices that fit the type of customer, not just their haggling skills.
- Spot opportunities (and risks) you’d otherwise miss—like customers who should be profitable but aren’t.
- Make your sales team’s lives easier. With clear segments, they don’t have to invent the wheel every deal.
But here’s the trick: Overcomplicate it, and your team will flat-out ignore it. So, let’s keep things practical.
Step 1: Get Your Data House in Order
What You Need
Before you even open Vendavo, get your data ready. Segmentation is only as good as your customer data. If it’s garbage, so are your segments.
Key Data You’ll Need: - Customer account names and IDs - Industry/vertical (ideally standardized) - Geography/region - Purchase history (volume, frequency, product mix) - Any relevant size indicators (revenue, headcount, etc.)
Pro tip: Don’t try to pull in everything. Start with what you can trust and expand later.
What to Watch Out For
- Duplicates: Two entries for the same customer = segmentation chaos.
- Missing fields: If half your customers don’t have an industry listed, fix that first or pick a different variable.
- Old data: Customers who haven’t bought in years? Archive or separate them.
Don’t get stuck chasing perfect data. Good enough is good enough to start.
Step 2: Define Segmentation Criteria That Actually Matter
Here’s where most teams get lost. You don’t need fancy analytics. You need clear, actionable groups.
Common Segmentation Approaches
- Industry or vertical: Especially useful if your products have different value props by sector.
- Customer size: Revenue, volume purchased, or number of sites.
- Geography: Only if pricing or market conditions really vary by region.
- Buying behavior: How often they buy, or how much support they need.
Pick two or three. Any more, and you’ll drown in complexity.
What NOT to Do: - Don’t use “relationship strength” or “VIP” status as a segment. If it’s subjective, skip it. - Don’t segment by every possible variable—focus on what changes pricing or sales approach.
Step 3: Set Up Customer Segments in Vendavo
Time to get hands-on. Vendavo offers segmentation tools, but you’ll need to map your criteria to how the software works.
A. Log in and Find Segmentation Tools
- Log into Vendavo and head to the Customer Segmentation or Segmentation Management section. The exact spot might differ by product version (they love to move things around).
B. Create Segment Definitions
- Create a new segment. Give it a clear, simple name: “Mid-sized Industrial – North America” beats “Segment 7B.”
- Assign rules or criteria. Vendavo lets you define segment membership based on customer attributes (like industry = “Manufacturing” and revenue between $10M–$100M).
- Use dropdowns and filters—no need to write code.
- Double-check that your data fields match what Vendavo expects.
C. Map Customers to Segments
- Vendavo can auto-assign customers if your data is clean. If not, you may need to review and tweak assignments.
- Spot-check a few big accounts to make sure they landed in the right segment.
- You can usually override assignments if you need to, but don’t make this the default.
D. Save and Review
- Save your segments.
- Pull a quick report or export to make sure your segments look right—are there any empty segments? Are your top customers spread out as you expect?
Pro tip: Don’t be afraid to delete or merge segments that don’t make sense once you see the data.
Step 4: Link Segments to Pricing Guidance
Segmentation isn’t the end goal—actionable pricing is. Here’s how to connect the dots.
A. Set Up Price Guidance by Segment
- In Vendavo, navigate to the price guidance or pricing strategy module.
- Assign target prices, floor prices, and/or discount ranges to each segment.
- Example: Enterprise customers get a different discount range than small, high-frequency buyers.
B. Test Before You Roll Out
- Simulate a few deals to see what pricing guidance pops up for different segments.
- Make sure nothing weird happens—like a tiny customer getting “key account” pricing.
C. Roll Out to Sales—But Train Them
- Don’t just push new segments and pricing live. Give your sales team a quick rundown:
- What each segment means
- Why a customer is in a given segment
- Where to find the new pricing guidance in Vendavo
What NOT to do: Don’t make your segments a secret recipe. If sales doesn’t get it, they won’t use it.
Step 5: Maintain and Adjust Segments Over Time
Here’s the honest truth: Segments aren’t set-and-forget. Customers change, markets shift, and your data (hopefully) gets better.
What to Keep an Eye On
- Segment drift: Customers who move between segments (e.g., small to mid-size as they grow).
- New data fields: As you collect better data, revisit your criteria.
- Useless segments: If a segment has three customers and nobody cares, merge or drop it.
Tools in Vendavo
- Use Vendavo’s reporting to spot imbalances or strange patterns.
- Set a reminder to review segments quarterly—don’t let this slip into “someday.”
What Works, What Doesn’t, and What to Ignore
What Works: - Keeping segments simple and tied to real pricing decisions. - Using data you actually have (not what you wish you had). - Getting buy-in from sales by making segments practical and transparent.
What Doesn’t: - Overengineered segment trees with dozens of tiny categories. - Relying on “gut feel” or internal politics to define segments. - Ignoring your segments after the initial rollout.
Ignore This: - Fancy dashboards until your basic segments and pricing guidance are in place. - “AI-powered” segmentation promises—unless you have clean, rich data and a real need, it likely won’t help today.
Keep It Simple—and Iterate
Customer segmentation in Vendavo isn’t rocket science, but it’s easy to overcomplicate. Start with what you know. Make segments that drive decisions, not debates. Once your team is actually using segmentation, then you can refine and get fancy.
Don’t chase “perfect.” Get it working, get feedback, and tweak as you go. That’s how real B2B sales teams win.