Customer Segments

Sep 01, 2011

Customer-focused companies recognize that they cannot appeal to all buyers in the same way. Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices. Rather than trying to compete in the entire market, you must identify parts of the market that you can serve best and most profitably.

The most effective way to do this is to segment customers. The goal of creating customer segments is so you can target specific customers that have similar needs and wants with the same message, products, pricing, and through the same distribution channels. When done correctly, your target market will respond similarly to your marketing efforts.

After you have identified your segments, determine what they need and how you can best satisfy them by providing value. Many organizations are committed to doing the right things, but they fail to understand what their people value. It is best to ask the customer/constituents and stakeholders themselves what they value. Then evaluate how to best provide value for each segment and set goals accordingly.



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