Customer Segmentation Framework

By: A Staff Writer

Updated on: Jul 19, 2024

What: Divides your market into smaller groups based on shared characteristics. Typical segments include demographics, behaviors, buying patterns, etc.

Who: Not one inventor, but a core marketing and business strategy concept.

Why: Enables targeted marketing, better product design, helps entrepreneurs understand who their ideal customer really is.

When: Before launching a product/service, if sales have stalled, or when expanding to new customer types.

How:

1. 1. Gather customer data (internal + market research).
   2. Look for patterns that define natural segments.
   3. Give each segment a name summarizing their needs.