Customer segmentation explained in less than 2 minutes.

Updated: Mar 3, 2020

Defining the groups of people you want to reach with your marketing messages is the foundation of your marketing strategy.

Why is it important to define your customer segments?

Because these groups of people are united by common characteristics and will be most likely to buy your products or services.

Casting your net too wide will force you to invest too much time and money to reach your target audience. It will also cause you to send out messages that are too broad and which will not resonate with your audience. 

Remember, good marketing is the implementation of basic psychology tactics. 

You NEED to understand your customers. You NEED to know who they are (gender, demographics, interests, behavior,..) You NEED to know what their daily tasks are, their pains while executing those tasks and the gains they hope to get out of them.

So start with investigating your existing customers and potential customers and get a good understanding of what makes their clock tick. Only then will you be able to narrow down your customer segments and target them with a specific message which answers their wants and needs. 


How to define your customer segments?

Your customer segment definition should be based on audience research, not your gut feeling. So always start with looking at the available data.

Follow the below six steps to define your customer segments clearly and based on facts

  1. Who could be interested in your offer? What problem are you solving and who could benefit from this solution?

  2. Analyze your data about your current customers. Look into your CRM, database, mailing lists or accounting program and figure out what the common characteristics of your existing customers are.

  3. Examine your website analytics

  4. Dig into your social media insights

  5. Check out the competition.

  6. Bring your customer segments to life by using buyer personas.

What is a buyer persona?

A buyer persona is an archetype of your customer. It’s a hypothetical representation of real living and breathing customers. 

Although your personas will be hypothetical, the information that you use to set up your personas should not be fictional. Try to collect as much data via surveys or by talking to your existing or potential customers and synthesize this data into a 1-page document that includes behavioral patterns, goals, skills, attitudes and more, with a few fictional personal details to make the persona a realistic character.

Use your personas to:

  • Think about what your customer needs from you.

  • Finetune your message accordingly.

Useful tools to help you set up a user persona:

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