Dividing customers into useful groups.
WHAT SEGMENTATION IS
Grouping customers who behave similarly.
WHY IT MATTERS
Different groups want different things, and one message serves none of them well.
WHAT TO SEGMENT BY
The problem they have The situation that creates it What they currently do What they value most
WHAT NOT TO SEGMENT BY, ALONE
Demographics, in most business contexts.
WHY
Two businesses of the same size can have entirely different needs.
WHAT MAKES A SEGMENT USEFUL
Large enough to matter Reachable Different enough to require different treatment Identifiable
WHY IDENTIFIABLE MATTERS
A segment you cannot recognise cannot be targeted.
WHAT TO DO WITH SEGMENTS
Decide which to serve.
WHY DECIDE
Serving everyone produces a product and message that fits nobody.
WHAT TO PRIORITISE
The segment with the most acute problem and the ability to pay.
WHAT TO DO ABOUT THE OTHERS
Serve them if they come, but do not build for them.
WHAT TO ADJUST PER SEGMENT
Messaging Pricing, sometimes Which features you emphasise Where you reach them
WHAT NOT TO ADJUST
The product, usually.
WHY
Divergent products multiply cost.
WHAT TO REVIEW
Whether your segments still describe reality.