I have a new segment - do I need a new model?

Overview

This lesson goes over the steps you can take to test if your new segment works with your existing Customer Fit model.
We will use two examples for this lesson.
1. Company X is going after a new market in France, and wants to see if their current Customer Fit model will work.
2. Company Y is growing and needs to start a dedicated Enterprise sales team and wants to see if they need a new model.

Prerequisites

  • Customer Fit Model
  • Historical conversions for your new segment

Example #1: Company X is going after a new market in France, and wants to see if their current Customer Fit model will work.

Step 1. Audience Setup

The first step is to set up an audience, this is done quickly through the MadKudu app.

  1. First login to your MadKudu app.
  2. Navigate to the mapping tab → 'Audience Mapping'
  3. Click 'Create new Configuration' → 'Create New'
  4. Name your audience. For our example we are going to use: 'Geo_France'.
  5. Select your source system. For our example we are going to use 'Salesforce'.
  6. Select your object. For our example we are going to use the 'Lead' object.
  7. Set your field. For out example we are going to use 'Country'.
  8. Set your condition. For our example we are going to use 'is'.
  9. Set your value. For our example we are going to use 'France'.
  10. Click Publish. 🎉

Great job! Now we need to check the performance of the model on this audience.

Step 2. Check the performance of your new audience

  1. Navigate to the 'Predictions' tab.
  2. Click into your 'Customer Fit' model.
  3. Change the 'Population' to the audience you just created. For our example, we will choose the 'Geo_France' population.
  4. Now you are going to want to first check the performance of your model. Take note of the number - we will decide later on if you need a new model!
  5. Check your 'MadKudu Fit Quality Distribution' and look at your 'SQO' and 'Closed Won' bars. Take note of these numbers also.

Now how do you know if this new audience you created is working with your current model?

Determining if your current Model will work for this new segment.

First Check:

Model Performance & MadKudu Fit Quality Distribution (SQO and Closed Won): These are used to easily gauge if this new segment works for your current goals, you are looking for a number greater than ~66%. If your new segment has a performance less than 66% you should reach out and ask about getting a new customer fit model tailored to your needs.

Second Check:

Head to the diagnostics page, change the 'population' to your new audience and and check the lead distribution chart.

You want to make sure no more than 30% of your leads month over month are 'Very Good' or 'Good'. This ensures that your sales team has enough bandwidth to touch all of them, and know they will convert at a better rate / amount than your low / medium leads.

Example #2: Company Y is growing and needs to start a dedicated Enterprise sales team and wants to see if they need a new model.

Step 1. Map your Enterprise Conversions

  1. Head to conversion mapping in the MadKudu app. (Mapping tab → Conversion Mapping)
  2. Click 'edit'
  3. Proceed to step 3/3 by clicking 'save and continue' twice.
  4. Scroll down and click 'Create New SQO'.
  5. Type in a name for it. For this example we will call it 'Enterprise'
  6. Next - click the '+' button
  7. Note these next steps will differ for you depending on your internal conventions
  8. Follow the images below to configure the conversion for your needs. For our example we are saying that Enterprise deals can be classified by any deal that closes over $60,000.Note* if you only have one CRM that is fine, the example below shows HubSpot and Salesforce.

  1. Now click 'Publish'. You will receive an email once your mapping is ready. You will need to wait an additional 24 hours for the mapping to be populated in your performance page before we can move to the next step.

Step 2. Check your Model Performance

Once your conversion shows up on the performance page you can proceed to the steps below

  1. Open up the predictions tab in the app, and click on your Customer Fit model.
  2. Change the 'Conversion Type' to your newly configured SQO. Note* Ensure you have your population set to your correct audience.
  3. Check the performance bar and ensure the performance is over 66%.
  4. Next proceed to the Diagnostics page (Click the button in the top right corner.)
  5. Again set your Predictions goal to your new SQO.
  6. Scroll down to the 'Conversion Distribution' in the 'Evolution over Time' card.
  7. You want to check that a significant proportion of your deals are caught and classified as 'Very Good' and 'Good'.

Determining if your current Model will work for this new segment.

If step 3. and 7. look good and fit the criteria then you can use this model! If not please reach out to your CSM for next steps.

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