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19 Customer Segmentation Examples to Grow Your eCommerce Revenue

Learn all the best ways to segment your customers to maximize your revenue. Cart abandonment, demographics, loyalty programs and omnichannel strategies.

Rakefet is the CMO at Mayple. She manages all things marketing and leads our community of experts through live events, workshops, and expert interviews. MBA, 1 dog + 2 cats, and has an extensive collection of Chinese teas.

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Updated March 14, 2024.

Imagine you’re running an eCommerce brand and you want to boost your email marketing revenue.

Problem is - you don't know how.

You have a large list of contacts (100k+) and you have a team of eager designers.

Yet everything you try doesn’t work. Sales aren’t going up, your email campaigns remain stagnant.

What you’re missing is - segmentation .

Segmentation is the key to a successful marketing campaign, on any channel. Be it email marketing, SMS , Facebook ads, or your actual site.

Studies repeatedly show that properly executed segmentation improves retention and brings more sales. One study found that brands that used segmentation in their email marketing campaigns saw an increase of 760% in their sales.

So how do you segment your audience?

In this guide to customer segmentation, we cover everything you need to know to improve your engagement and increase your sales.

Let’s get started.

What is customer segmentation?

Customer segmentation is the practice of dividing your audience into segments based on specific characteristics. If you use audience analytics, you can leverage the millions of customers' interactions with your brand online in a systematic way.

The reason that segmentation works is that not every customer is at the same stage of the buying process (or customer journey). It could be a first-time visitor or a returning customer. It could be someone that’s just shopping around or someone who knows the make and model of what he wants to buy, and he’s ready to buy it right now.

In order to get the sale, you need to divide your list into customer personas or audience segments and create content to fit each segment.

What are the benefits of customer segmentation?

The benefits of market segmentation include many things such as higher customer satisfaction , an improved engagement rate, a higher conversion rate, and more sales. A successful customer segmentation strategy should focus on one specific goal or KPI and create campaigns targeting specific customer segments to achieve that goal.

Here are the main types of segmentation you could use.

5 Types of Customer Segmentation

There are four types of market segmentation models that brands should use to improve their conversions.

Demographic segmentation

The most popular way to segment your audience is through observable demographic characteristics. These include things like gender, age, family status, occupation, level of education, income level, religion, race, and ethnicity.

This data is relatively easy to get but on its own, it’s not enough. you will have to get data on what the users do on your site.

Behavioral Segmentation

One of the most powerful ways to segment your audience is to look at what they do on your site. This includes both shopping behavior and purchase behavior.

• Which products did each user view?
• Which pages did they visit?
• Which popup did they convert on?
• How many times did the open or click on your emails?
• What is their average cart value?

These are all really great ways to better target these users with personalized marketing messages and promotions.

Geographic Segmentation

This type of segmentation is for businesses that sell in multiple countries or timezones, or if they sell seasonal products. It involves segmenting your audience based on their geographic location and weather. For example, a fashion brand won’t sell fur coats to people in San Diego, where the weather stays at 70 degrees all year round.

It can also involve segmenting people based on their zip code and whether they live in rural or urban areas. A brand can also decide to tailor its message according to differences in language, cultural norms, or religious traditions that vary by region.

Psychographic Segmentation

The next level of segmentation deals with more emotional and mental characteristics of users. It includes things like personality traits, interests, beliefs, values, attitudes, and lifestyle choices.

For example, an e-commerce business that sells recycled iPhone cases should segment its audience based on how environmentally conscious they are. These values will greatly affect the type of audience targeting they do and the type of content they display.

Technographic Segmentation

Last but not least, there’s technographic segmentation which aims to target users based on the role technology plays in their life. Basically, the question here is whether a particular user is tech-savvy or not.

This applies to brands that launched products that have app-powered features or use cases that include a higher degree of technical competency.

One example of this could be a floor lamp that’s powered by Alexa and can be turned on/off remotely. This technical feature can greatly improve the user experience but may fail if your users aren’t tech-savvy enough to use it.

Getting this kind of customer data can really improve customer retention and product development in the long term.

Now that we spoke about the types of segmentation, let’s dive into examples for each one.

Effective customer segmentation examples for ultimate growth

Here are 19 examples of customer segmentation and how you can apply them in your marketing strategy to increase your e-commerce revenue.

Targeting users based on their location is called geographic segmentation. It’s when you segment your audience based on countries or specific zip codes. For example, a global fashion brand that sells seasonal clothing would want to offer winter coats to Australians in August, and tank tops to customers in California.

Here’s an example of a gym showing an ad to the residents of a particular city.

Pro tip : the next time you are looking to optimize your Google Ads, take some time in the location tab. Beyond countries and cities, Google will let you drill down into particular areas. Also, don't forget to exclude locations. You'll help the algorithm pinpoint areas you are targeting, and you'll save money along the way.

A subset of geographic segmentation is segmenting by the users’ culture. For example, Mcdonald's has locations around the world and they change their menu and advertising to fit each country’s culture.

Here’s an ad they display in India.

And here’s another one for the Indian Big Mac.

McDonald's changes the content, marketing messages, and even the menu items in order to fit the interests of target audiences in these different target markets. If they don’t evolve they will simply lose these market segments. So personalized content is absolutely key here because we’re talking about food, and you can’t argue with food tastes.

Men and women exhibit very different shopping behaviors and consumer interests. With those differences in mind, you can apply key product differentiation and design elements to target those gender groups with relevant products and experiences. Gender-specific marketing increases engagement rate and, in the case of email, increases the click-through rate.

Age segmentation allows you to understand how different age groups interact with your product. Look at past campaign data to see the age groups purchasing on your site and use demographic segmentation and life-stage segmentation to target consumer interests and purchasing habits.

For example, this ad might be sent to parents with children or children within a particular age group.

The changing weather is an essential factor for seasonal products. These are products that are only relevant in specific seasons and weather patterns. For example, if you sell raincoats and there’s a big storm coming, then you should mention it in your campaign and start targeting users in that specific location. Here’s an example of an ad from Ireland.

Another great way to segment your audience is by their profession or job. It provides a great opportunity to target your ideal customers if they belong to a specific occupation. It’s a more advanced form of segmentation.

For example, Home Chef is a food delivery that delivers fresh customizable meals to its customers. They wanted to target the educational and health sectors so they created this email and sent it to the particular segments.

Device Type

More than 50% of the traffic brands get is from mobile users and that provides a great opportunity for segmentation. If you sell phone accessories, for example, you could segment your audience based on the type of phones they are using and target them with specific offers.

If your product isn’t used differently depending on the device type then look at your data and see if there are shopping trends based on different devices. Is there certain copy or offers that convert better on mobile? Test that out and see how you can increase those conversions.

Cart abandonment

Cart abandonment is a trillion-dollar problem. Almost 70% of desktop users leave their carts before completing their purchase, and that number is even higher for mobile users at 86%. One way to save those carts is by retargeting those users with popups, email flows, and text messages.

Create a series of relevant emails or drip campaign campaigns to encourage users to return. Segment them based on their activity level and the type of product that they added to the cart.

Product type or collection

Speaking of products, segmenting customers by collection or product they purchased creates multiple retargeting and remarketing opportunities for your e-commerce business.

Based on past purchasing data, you can retarget with similar products or complementing products. Use this data to launch effective upselling and cross-selling campaigns to engaged customers.

Political affiliation is another way you can relate to your audience and personalize your offer. Use this more sparingly if your audience lives in swing states. Make sure that you have a solid foundation on who your customers are before you try to mention anything political.

Ben and Jerry’s does this a lot. They create ice cream flavors that relate to specific political issues and get a lot of media attention. Here’s a flavor they created for a Democratic candidate in Vermont (notice: Vermont is a very democratic state).

Use political segmentation cautiously because you don't want to create negative publicity for your brand. It’s best for smaller brands that use niche marketing to target a very specific segment of customers.

Lifestyle segmentation uses behavioral and demographic segmentation to identify your target customer.

For example, you can target potential customers who align with luxury lifestyle interests and have strong purchasing behavior with high ticket brands in the last 30, 60, 90 days. Depending on the platform you are using, you can define these parameters and target these segments.

For instance, running email marketing on Klaviyo allows you to segment your audience according to a variety of factors, using data from your system and from outside of it (e.g., Facebook user behavior data.) Plus, integrating Klaviyo and Shopify (or another eCommerce platform) makes it easy to connect your email marketing and your eCommerce platform in a matter of minutes.

If you haven’t used it before, here’s a quick Klaviyo guide for beginners to help you get started with it. And if you’re still lingering on Drip vs Klaviyo , we’ve got you covered as well -- click the link and learn more about choosing the best option for your business. And if you need help to make the most of Klaviyo’s capabilities, don’t hesitate to contact us and hire a vetted Klaviyo growth agency or Klaviyo marketing expert !

Launching campaigns with your consumer's lifestyle in mind will optimize your campaigns for product relevancy and intent. Here’s a campaign from Carnet Jove, a youth credit card company that operates in 36 countries in Europe.

Interest segmentation is another example of behavioral segmentation. Consumers' ever-changing interests require an effective market segmentation strategy. Target audiences that have related interests around your product.

Athletic brands do this the most. For example, Nike creates different ads for different sports -soccer, tennis, football, etc. Each sport gets its own ad, sometimes its own shoe, and that thread is seen throughout their funnel.

Family situation

Another great way to segment your audience is to target individuals by marital status, years in a relationship, family size, and children’s age groups. Our life stage affects our buying behavior. Parents make purchases for their children. Baby boomers taking care of their elderly parents make different purchases.

We’re not talking about sending out a simple father’s day email . This type of segmentation involves thinking of buying trends like young parents buying products for newborns or older parents buying college supplies for their graduating seniors.

The types of marketing campaigns you send can vary on the marital status of your users, especially if you are in the travel industry or your products are consumed/used by families. This type of market segmentation allows you to target the ideal customers for your product.

Top purchasers

Segment your list based on loyalty. Look at those customers that have purchased multiple times. Their strong purchasing habits on your website, along with their consumption habits in general, make them highly engaged customers.

Target this segment with exclusive offers to make them feel special. You could run a customer loyalty or rewards program, and give incentives to your top purchasers to add more products to their carts.

Pro tip: the same market segmentation strategy that’s used for top purchasers could also be used for repeat customers, your customer loyalty or rewards program, your affiliate program , or your partner program.

Referred customers

Referred customers are four times more likely to guide others to your brand. Segmenting your audience based on whether they were referred is a practical approach to improve your referral sales. Target your current customers who joined your referral program and develop campaigns that will turn your referrals into superfans.

Pro tip: your referred customers are usually your most engaged segment. Find out what they most loved about the product and what made them buy it. Use their feedback to improve your market research and product development to make sure that you’re creating the best product for your target market.

Re-engage inactive customers

On the other end of the spectrum, there are inactive customers that haven’t bought anything in a while. Re-engage these customers with an email flow and a retargeting campaign. Invest in effective marketing by utilizing this type of psychographic segmentation by using urgency or “fear of missing out (FOMO)”.

Pro tip : launch an email flow targeting inactive customers to increase email deliverability and make sure that your emails are getting to your customers’ inboxes.

Best reviewers

Reviews are an essential part of organic marketing. Search engines rank pages with reviews higher because they are a more authentic representation of a business.

Find users that left a review on your online store or on social media and send them a thank you email . Offer them to join your special loyalty or rewards program and work on getting them even more engaged with your brand.

Welcome flow for new customers

A welcome flow can start with a new visitor to your social media account or website. First, greet new visitors with an exclusive offer. Then, when they respond to that offer, they can enter into a drip campaign that gradually increases your customer engagement.

Frequent users

Frequent users are your loyal customer base and your brand ambassadors online. They are more likely to share your posts, encourage others to purchase your products, and leave feedback. They are early adopters, enjoy an exclusive discount code or loyalty program. Target these loyal customers to grow organically and multiply your organic reach online.

Most viewed products

Products that are the most viewed on your website are trending products. Use this data effectively and promote these products at the checkout process or use them to target inactive customers.

Traffic source

Another great way to segment your audience is by looking at your traffic source. This is important because each user segment may have different pain points and needs. You might want to isolate sources with low competition (like a referral or an affiliate traffic) and really focus on the more competitive (and more expensive) sources like Facebook ads.

A central idea in conversion rate optimization campaigns is “message match”. It’s the idea that your offer or copy on an ad should match the copy on the landing page. That’s why businesses display different copy on their popups depending on where the users are coming from.

For example, you might be running a giveaway with other brands and you’re all sharing those leads. Segmenting users based on whether they came from this giveaway is a great way to differentiate your brand and really delight those customers.

You should use the same marketing strategy for content marketing collaborations or partnerships with specific sites that bring you traffic. Create a landing page and email flows to target each audience accordingly.

Pro tip: you should create a customer journey map to track each customer profile that you are targeting and add it to your company’s knowledge base. Include in it all the different types of market segmentation with examples of actual campaigns that you’re testing. This will greatly help your marketing efforts.

Channels you should use these segments for

The power of customer segmentation is that you can use the same segment for multiple marketing channels. Here are a few examples of digital marketing channels you can incorporate into your segmentation process.

• Cart abandonment - target the same segments with email campaigns, text messages, push notifications, and chat broadcasts. You could also retarget them with ads.
• Similar products - display similar or recommended products on your home page, collection & product pages. You can also display “previously viewed” products in email campaigns.
• Facebook audiences - use your segments to create audiences for Facebook & Instagram ads to convert potential customers and to retarget your current customer base.
• Omnichannel marketing automation - use marketing segmentation to create segments that you can use on multiple channels such as social media, email, chat, push notification, etc.

Effective marketing involves targeting customers across the entire customer journey through a variety of marketing channels. For more info on how to use marketing segmentation and automation read our Ultimate Guide to Omnichannel Marketing .

Improve your LTV and the Customer Experience

One important thing to remember is that segmentation is not just designed to help you convert customers. It’s a powerful tool in all of your marketing efforts, particularly the post-purchase experience of your customer.

Personalizing your content marketing to each of your customer segments will increase the engagement and conversion rates of your active users and will help you build a more engaged audience.

Delight the customer and always put them first. And most importantly, ask yourself - “what else can I do to improve the customer experience, at every stage of the customer journey?”.

Focus on the needs of your customers and you will win every time.

Need someone to help you leverage the power of segmentation for your business? Hiring a professional email marketing company is a great option, contact us and we’ll match you with the best ones in your niche!

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What is Customer Segmentation? Practical Guide with Templates

Customer segmentation is a strategic approach to understanding and categorizing your customer base. It helps businesses customize their approach, making products and marketing more effective. And in this guide we will share what is customer segmentation along with insights and tips on how to use customer segmentation to boost satisfaction and overall success.

What is Customer Segmentation?

Customer segmentation is the practice of grouping customers based on similarities in characteristics, behaviors, or preferences. This helps businesses tailor their products and marketing to meet the specific needs of each group, ultimately improving customer satisfaction and overall success.

Segmenting customers involves dividing them into distinct groups or segments based on identifiable traits, behaviors, or preferences. These characteristics could include demographics (age, gender, income), psychographics (lifestyle, values, interests), geographic location, purchasing behavior, or other relevant factors. The primary aim is to create segments that share common attributes and respond similarly to marketing efforts.

Understanding each segment’s unique needs and preferences helps businesses create targeted marketing strategies, personalized communications, and tailored products. By doing this, companies can allocate resources more efficiently, target high-potential customers, and improve customer satisfaction.

Customer Segmentation vs Market Segmentation

Customer segmentation is about grouping a company’s existing customers based on things they have in common, like age or interests. The goal is to understand their needs and tailor products or marketing to each group.

Market segmentation is a broader concept, including not only existing customers but also potential customers in the target market. It divides the overall market into segments based on various factors to identify and prioritize different customer groups.

In short, customer segmentation focuses on current customers, while market segmentation considers both current and potential customers in the broader market.

What is CLV-Focused Customer Segmentation

CLV-focused customer segmentation involves sorting customers based on how valuable they are over the long run. It involves grouping customers by the potential revenue they can bring to the business throughout their entire relationship. Businesses then prioritize strategies for the high-value groups, like personalized marketing and special offers, to maximize their loyalty and contribution. The goal is to allocate resources wisely and build strong, profitable relationships with customers who are likely to be most valuable over time.

Types of Customer Segmentation

1. demographic segmentation.

Demographic segmentation involves categorizing customers based on specific demographic factors.

• Age : Sorting customers by age groups like teens, young adults, middle-aged, or seniors.
• Gender : Grouping customers as male or female.
• Income : Categorizing customers by income levels - low, middle, or high.
• Education : Segmenting customers based on education levels such as high school, college, or postgraduate.
• Occupation : Sorting customers by their jobs, like healthcare professionals, IT specialists, or teachers.
• Marital status : Grouping customers as single, married, divorced, or widowed.
• Family size : Considering the number of people in a customer’s household, like singles, couples, or families with children.
• Ethnicity or race : Segmenting customers based on their ethnic or racial background.

2. Geographic segmentation

Geographic segmentation involves categorizing customers based on their geographical location. Here are key aspects of geographic segmentation;

• Country : Dividing customers based on the country they reside in.
• Region : Segmenting customers according to their specific region or area within a country.
• City : Categorizing customers based on the city they live in.
• Climate : Considering the weather and climate conditions of the customer’s location.

3. Psychographic segmentation

Psychographic segmentation involves categorizing customers based on their lifestyle, values, interests, and personality traits.

• Lifestyle : Grouping customers based on their activities, hobbies, and overall way of life.
• Values : Segmenting customers according to their core beliefs and principles.
• Interests : Categorizing customers based on their hobbies, passions, and areas of interest.
• Personality traits : Considering customers' personality characteristics, such as adventurous, conservative, outgoing, or introverted.

4. Behavioral segmentation

Behavioral segmentation involves categorizing customers based on their behaviors, actions, and interactions with a product or service.

• Purchasing habits : Grouping customers based on their buying patterns, such as frequent, occasional, or seasonal purchases.
• Product usage : Segmenting customers according to how often and in what ways they use a product or service.
• Brand loyalty : Categorizing customers based on their loyalty to a particular brand or willingness to try different brands.
• Responses to marketing : Considering how customers respond to advertising, promotions, and other marketing efforts.

5. Needs-based segmentation

Needs-based segmentation involves categorizing customers based on their specific needs, preferences, or challenges that they aim to address through a product or service.

• Specific needs : Grouping customers based on the particular requirements or problems they are looking to solve.
• Preferences : Segmenting customers according to their preferences and desires related to a product or service.
• Challenges : Categorizing customers based on the difficulties or obstacles they face that the product or service can alleviate.

6. Technographic segmentation

Technographic segmentation involves categorizing customers based on their technology usage, preferences, and familiarity.

• Technology usage : Grouping customers based on the types of technology they use, such as devices, software, or platforms.
• Preferences : Segmenting customers according to their preferences for specific technological features or functionalities.
• Familiarity : Categorizing customers based on their level of familiarity with and adoption of new technologies.

Why Segmenting Customers is Important

Segmenting customers helps businesses better understand, target, and serve them. It’s essential for marketing success, customer satisfaction, and overall business success. Here are some benefits of customer segmentation to consider.

• Helps businesses comprehend the varied needs and preferences of different customer groups.
• Allows for personalized and effective marketing strategies tailored to specific customer segments.
• Enables businesses to allocate resources more efficiently by focusing efforts on high-potential customer groups.
• Tailoring products and services to customer segments leads to increased satisfaction and loyalty.
• Facilitates the customization of products to meet the specific demands of each customer segment.
• Tailoring communication to specific customer segments ensures messages resonate effectively.
• Helps businesses adapt to changes in the market by understanding customer responses to evolving trends.
• Provides a competitive edge by positioning products or services uniquely for specific customer groups.

Customer Segmentation Template

Creating a customer segmentation template can help you organize and document key information about your different customer groups. You can use this template to begin segmenting your customers. You can customize and expand on this template based on the specific needs of your business:

How to Segement Customers

The idea of segmenting customers is to break them down into smaller, more manageable groups based on shared characteristics, behaviors, or preferences. Remember, customer segmentation is an ongoing process that evolves as your business and customer dynamics change. So, it’s important to reassess and adjust your segmentation strategies regularly.

Step 1. Define objectives

Clearly articulate the goals you want to achieve through customer segmentation. Whether it’s improving marketing effectiveness, increasing customer satisfaction, or targeting new markets, having well-defined objectives will guide your segmentation strategy.

Step 2. Gather data

Collect relevant data about your customers. This data can include demographics, psychographics, purchase behavior, geographic location, and other pertinent information. Use both quantitative data (such as sales records, website analytics, and customer surveys) and qualitative data (customer feedback, interviews, and social media interactions).

Step 3. Identify segmentation variables

Determine the criteria or variables that will be used to segment your customer base. Common segmentation variables include:

• Demographic variables : Age, gender, income, education, occupation.
• Geographic variables : Location, region, urban/rural.
• Psychographic variables : Lifestyle, personality, values, interests.
• Behavioral variables : Purchase history, frequency of purchase, brand loyalty.
• Technographic variables : Technology usage, online behavior, platform preferences.

Step 4: Segmentation analysis

Use statistical techniques and tools to analyze the gathered data and identify patterns or groups within your customer base. This may involve using clustering algorithms, regression analysis, or other statistical methods. The goal is to group customers who share similar characteristics.

Step 5: Develop customer profiles

Create detailed profiles for each customer segment. These profiles should include the defining characteristics, behaviors, and preferences of each group. This step involves combining both quantitative and qualitative insights to develop a comprehensive understanding of each segment.

Step 6: Implement targeted marketing strategies

Tailor your marketing strategies to each customer segment’s needs and preferences. Develop personalized messaging, promotions, and product offerings for each group. This helps make sure that your marketing efforts resonate more effectively with specific segments, leading to improved customer engagement and satisfaction.

Step 7: Evaluate and refine

Regularly assess the effectiveness of your segmentation strategy. Monitor key performance indicators (KPIs) such as customer retention, conversion rates, and sales. Gather feedback and be prepared to refine your segmentation approach based on changing market dynamics or evolving customer preferences.

When to Use Customer Segmentation

Use customer segmentation when you want to:

• Identify and comprehend diverse customer groups with unique needs and behaviors.
• Customize marketing efforts to address the specific preferences of each customer segment.
• Increase customer loyalty by addressing the individual needs of different customer segments.
• Identify characteristics of target audiences when entering new markets or launching products.
• Set prices based on perceived value, maximizing revenue and competitiveness.
• Inform product design and innovation by understanding the unique needs of customer segments.

Tips for Effective Customer Segmentation

Here are some tips to help you segment customers successfully.

• Blend traditional demographics (age, gender, location) with psychographics (interests, values, lifestyle) for a richer understanding of your customers. This will provide a more holistic view of who they are and what motivates them.
• Make use of advanced analytics tools and machine learning algorithms to process large datasets. This helps uncover hidden patterns, predict customer behavior, and refine your segmentation strategy.
• Map out the customer journey and segment customers based on where they are in the buying process. This allows for targeted messaging and interventions at key touchpoints.
• Don’t forget that customer preferences change. Stay relevant and responsive with dynamic segmentation strategies that adapt to changing behavior.
• Gather insights about customer sentiments, opinions, and emerging trends on social media and online platforms. You can tweak your segmentation strategy based on this real-time data.
• Establish feedback loops to continuously gather input from customers. Understand their experiences, preferences, and pain points to refine your segmentation and improve customer satisfaction.

Simplify Segmenting Customers with Creately

Creately’s visual collaboration platform offers several features that can help teams perform effective customer segmentation.

Visualize customer data

Creately’s diagramming tools allow teams to visually map out customer segments. Using shape libraries or templates for flowcharts, Venn diagrams, customer journey maps, user personas and other visual elements, teams can organize customers based on attributes like demographics, psychographics, behaviors, and needs. This visual representation makes it easy to see how segments differ and where they overlap.

Integrated notes and data fields

Keep all customer segment related data in one place with per item notes and data fields. Attach files, images, and embed anything on the canvas to centralize information.

Real-time collaboration

Work with teams across the organization with real-time collaboration features like live mouse tracking, synced previews and comment threads. Use Creately’s plugin for Microsoft Teams to easily brainstorm, plan, and execute your ideas during meetings.

Present and share

Use presentation mode to create slides right out of your visuals on the canvas and create interactive presentations for clients and stakeholders. Easily share your customer segmentation research with other collaborators with a workspace share link or embed it in any site or intranet with a secure link.

Project management tools

Go from idea to execution in the same place. Ideate, plan and execute your marketing strategies for each customer segment with built-in project management tools. Assign responsibilities, set due dates, and monitor progress with Agile Kanban boards, Gantt charts, timelines and more. Create task cards containing detailed information, descriptions, due dates, and assigned responsibilities.

Customer segmentation helps businesses understand and connect with different types of customers. By looking at demographics, interests, and behaviors, companies can create better, more personalized strategies. It’s important to keep adapting and working together across teams to stay in tune with what customers want. We hope that this comprehensive guide on customer segmentation helps you with that.

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

21 real-world examples of customer segmentation

In today’s hyper-competitive world, personalized ads are necessary if you want to stand out, get your brand noticed, and boost revenue. To help their company reach its goals, business owners and executives need to understand which customers to target with personalized ads — but it can be challenging to know exactly who those customers are and how to target them.

The key is to segment your customers into groups with common characteristics , a process known as customer segmentation. If you’re unsure what customer segmentation is or how it fits into your marketing strategy, you’re not alone. Even if you have an experienced marketing team looking to expand its list of customer segments, seeing some real-world examples of customer segmentation can help you revitalize your own strategy with new inspiration.

Customer segments are vital in order to properly target personalized marketing. In this guide, we’ll explore 21 leading customer segmentation examples that will help you connect with your ideal audience and improve your marketing efforts.

Specifically, we’ll cover:

What is customer segmentation?

Benefits of customer segmentation, customer segmentation models, customer segmentation examples, how to manage your customer segments with the right software.

Customer segmentation is the process of grouping your target audience into smaller segments based on shared characteristics. As part of this process, marketers use specific factors to create each sub-group, which are known as customer personas. A customer persona is a fictitious character that describes the interests, traits, and behaviors of a particular customer or customer segment.

Some of the variables that marketers may analyze to segment audiences include geographical data, psychographic traits, demographics, or history with the brand (i.e., new customers versus repeat customers).

One popular approach to customer segmentation is psychographic segmentation. Psychographic segments are based on preferences and interests instead of factors like age or gender. However, most marketers will use both psychographic segmentation and traditional customer segmentation strategies when creating customer personas.

Customer segmentation vs. market segmentation

Customer segmentation should not be confused with market segmentation. The latter refers to the process of breaking down a market into distinct segments. While market segmentation uses some of the same categories to group audiences, it aims to identify which groups exist in a specific region to assess market viability. It is not used to create buyer personas or target high-value customer groups.

Using customer segmentation to create buyer personas can give marketers actionable insights into each group’s buying habits, preferences, and interests. In turn, they can use this information to develop tailored marketing content that resonates with a specific group. Ultimately, this will allow marketers to maximize the return on investment of advertising investments, generate more leads, and drive conversions.

In addition to gaining customer insights, other benefits of customer segmentation include:

• Communicating on preferred marketing channels
• Boosting customer engagement
• Improving customer loyalty

There are four main models for customer segmentation.

Demographic customer segmentation. Demographic customer segmentation involves grouping audiences by factors such as marital status, education, income, gender, and age. This is one of the most practical segmentation types, as variations in these factors are strong indicators of buying habits.

Behavioral customer segmentation. Behavioral customer segmentation considers behaviors like product usage, tendencies, shopping preferences (i.e., in-person or online shopping), and more.

Geographic customer segmentation. Geographic customer segmentation divides audiences based on which country, state, city, or town they reside in. This segmentation practice is useful when targeting new markets or engaging in local SEO.

Psychographic customer segmentation. Psychographic customer segmentation looks beyond basic factors like age or gender and instead shifts its focus to personality, attitude, interests, and values. Psychographic segmentation takes a deep dive into psychological attributes that drive users’ spending habits.

Generally, marketers will use several different segmentation models to create target audiences. For instance, you may decide to target some customers based on demographic variables like their ages but also run a campaign geared toward consumers with specific buying habits.

The 21 customer segmentation examples that made our list are some of the most commonly used variables to divide and target audiences.

Generally speaking, male and female customers exhibit different shopping habits. It’s no wonder so many brands create separate marketing campaigns geared at each gender. This approach allows businesses to tailor everything from imagery to the verbiage of their call to action (CTA) to align with each group’s buying habits. Launching gender-specific campaigns is more effective than attempting to run one unified campaign that doesn’t account for each group’s unique traits.

To see an example of gender segmentation, just check out any clothing industry that sells both men’s and women’s clothing. These brands often have entirely separate web pages for each group. Naturally, each page or set of pages will feature a model of the appropriate gender to help catch the viewer’s attention. Gender segmentation is a prime example of demographic segmentation.

Age is another common example of demographic segmentation. On its own, age will tell marketers a lot about an individual’s interests and buying habits. However, combining it with one or two other variables, like gender and location, reveals even more insights. For example, a 20-year-old male living in New York City will have different interests than a 65-year-old female residing in Miami.

Once again, we can look to the clothing and apparel sector for an example of age-based segmentation. Check out any website that sells adult and youth clothing. The youth section will be geared toward viewers of that age group and their parents. Conversely, the adult section will include an adult model, probably one that is in the same age range as the youth segment’s parents.

3. Occupation

Segmenting customers by occupation serves multiple purposes. First, it can provide insights into their interests and shopping habits. Additionally, gathering professional data allows you to make inferences about their incomes, even if they decline to share that data with your company.

Occupation is a demographic customer segmentation example. This variable is most useful when combined with additional information. For instance, a mid-20s blue-collar worker in the Pennsylvania steel industry may be likely to support some of the state’s major sports teams, such as the Pittsburgh Steelers. When targeting this segment, you could run ads on team websites or during broadcasts of the games.

4. Marital status

Marital status is another practical customer segmentation example. Brands can target customers based on whether they are single, married, engaged, involved in a serious relationship, or divorced. An individual’s family situation will directly impact their spending habits and total disposable income. Segmenting customers in this way will help brands get their content in front of the right audiences.

For instance, a video game developer can use this demographic segmentation model to target families with ads about its newly released game. In the ad, the developers could show an ecstatic child opening a package containing the game while their parents happily observe. Such an ad would generate intrigue among children and convey that parents can bring joy to their kids by purchasing the game.

5. Device type

The next segmentation variable falls into the behavioral bucket. Specifically, categorizing consumers by device type allows you to determine whether your customers connect with your brand via mobile or desktop devices. Using this segmentation criterion, you can determine which channels will produce the strongest ROI and develop more effective marketing campaigns.

Let’s say that 75% of your traffic originates from mobile devices. In this scenario, it would be vital to optimize all of your content for viewing on mobile devices. You could take this a step further by focusing most of your marketing efforts on mobile-centric channels, such as social media platforms.

6. Cart abandonment

Cart abandonment is another behavioral segmentation criterion. Tracking cart abandonment rates is a great first step. But you can also actively retarget individuals who have abandoned their carts by first segmenting them into a separate audience, then incentivizing them to complete their purchase using email-based advertising. This tactic will lower your cart abandonment rate and increase total sales volume.

Let’s say that you analyze your cart abandonment rate and find that about 20% of prospective customers leave your website during checkout. You could set up automated email marketing campaigns and retarget these individuals by sending them messages encouraging them to finish the purchase. If you really want to pump up your sales figures, include a discount or free shipping coupon in the email to make the offer even more appealing.

7. New customers

The new customer variable falls into the behavioral segmentation model. Segmenting new customers into their very own group helps audiences better target individuals in the early stages of the purchasing journey. New customers (or new leads) require more nurturing than repeat buyers who are already loyal to the brand. By segmenting new customers into a specific category, businesses can more effectively create top-of-funnel content that facilitates lead generation.

For instance, let’s say that you want to develop some top-of-funnel content to increase brand awareness. This content should focus on introducing your brand and its product, highlighting your company values, and demonstrating why a consumer should consider purchasing your goods. If your ad resonates with consumers, they will be eager to learn more about your brand, giving you the opportunity to follow up with mid-funnel content.

8. Repeat customers

Repeat customers are individuals who have made purchases from your brand in the past and are back for more. Marketing to these individuals can be easier because they are already familiar with your brand. Segmenting customers using this behavioral variable allows you to create content that jumps right into your value proposition. These ads should be concise, purposeful, and include a strong CTA.

Since you probably already have repeat customers’ contact information, you have plenty of options when it comes to creating content. A great approach involves targeting them with paid ads that highlight a product similar to items they’ve purchased in the past. Alternatively, you can notify them about a newly released item via email and include a coupon or discount code to thank them for being loyal customers.

9. Top purchasers

Top purchasers are extremely loyal customers who regularly buy, visit your site, and browse your offerings. These customers are something special and have a high lifetime value. Segmenting customers based on this behavioral criterion gives you a chance to show your appreciation and nurture feelings of loyalty toward your brand.

The easiest way to market to these individuals is to give them exclusive offers and discounts. You could also develop a rewards points program that allows them to unlock additional discounts by meeting certain purchase volume thresholds.

10. Lifestyle

Lifestyle segmentation is a combination of demographic and behavioral models. Using these criteria to segment audiences enables you to pinpoint prospective customers who have high interest in the products and services you offer. Lifestyle segmentation will help you avoid advertising to consumers who either have no interest in your products or cannot afford them.

For example, luxury car manufacturers often use lifestyle segmentation to target top earners. They identify top earners by analyzing factors like their age, education level, occupation, and, if available, past spending habits. From there, they can create ads that mirror this individual’s interests and tastes. This may mean showing someone in the same age range attending a luxurious party, wearing a high-end watch, and ultimately exiting the venue and driving away in the brand’s flagship vehicle.

The source customer segmentation example is similar to the device variable. However, this one gets a little more granular. When using a source to segment customers, you are grouping people based on which channel they used to connect with your brand, such as Facebook, Instagram, or Google. Source segmentation helps you determine which channels are most popular among your target audience so that you can prioritize them in future campaigns.

Let’s say you conduct an analysis of your total site traffic and find that 40% of your visitors arrive via Instagram Ads, but only 5% find your brand on Facebook. However, your ad costs on each channel are about equal. These statistics reveal that your target audience is far more active on Instagram, meaning you should probably reallocate some of your Facebook marketing funds to the former platform.

Income is a good indicator of how much money an individual can spend on goods or services. But this demographic factor doesn’t provide a full view of an individual’s purchasing power. For example, an individual who makes $150,000 per year has far more disposable income than a family of four with the same household income. Still, targeting high-income individuals is a good approach for boosting sales, especially if you offer high-end or luxury products.

Let’s say you analyze the average income of your customers and find that the majority of them make upward of $80,000 annually. Targeting such individuals with the majority of your marketing efforts would likely be a good idea. However, that does not mean that you should completely ignore consumers who fall below that threshold, especially if your products perform well among that audience as well.

13. Birthdays

Segmenting customers by their birthday is an extremely popular strategy, especially among brands that sell low-cost consumer goods, such as clothing, apparel, and makeup. This approach builds customer loyalty by allowing you to message them on their birthday and keep your brand personally relevant to them. That’s what we call a win-win.

By using this segmentation criterion, you can create custom mailing lists and reach out to all your past customers on their special day. Let them know you are thinking about them, wish them well, and while you are at it, include a coupon or discount code. What better way to show them you care than by making your products a little more affordable?

Modern consumers are extremely conscious of the values and beliefs of the brands with which they do business. While each audience segment will prioritize a unique set of values, one that appears to be nearly universal is an interest in sustainability. By segmenting customers who are passionate about conserving natural resources, you can appeal to these individuals’ values using targeted ad campaigns.

For instance, as an environmentally conscious brand, you recently released a product that is partially produced using recycled plastics. To showcase how your company is doing its part to reduce its impact on the world around us, you create an ad campaign that provides some statistics breaking down just how much plastic waste you are eliminating via your efforts.

15. Interests

Using the psychographic model to segment customers based on their interests may seem obvious. Of course, you want to target customers who are interested in your brand and its products. But you can also use this factor to identify customers who are interested in things that don’t directly relate to your industry. This can expand the reach of your content and help you acquire more leads.

Let’s say that you sell a healthy, delicious snack bar. Through market research, you find that a little over half of your customers drive SUVs and enjoy adventuring outdoors. Running an ad campaign that shows a fictitious customer exiting an SUV and approaching a hiking trail while chowing down on your product merges three of their interests. This approach makes your ads more relatable and can resonate well with audiences.

16. Location

The location segmentation variable involves segmenting audiences based on where they live. International brands can group audiences by the country they reside in and then create nation-specific marketing content. Alternatively, a domestic brand can segment audiences based on smaller geographical areas, such as cities or counties.

For instance, let’s say that your business primarily operates in San Diego, and you want to expand to San Francisco. You could create a new customer segment that only includes San Francisco residents and develop marketing content directed at and targeted to these individuals. This approach would get your content in front of San Francisco consumers and help you gain a foothold in The Golden City.

17. Reengage active customers

By using behavioral segmentation, you can identify active customers. Even though these individuals are already active, you can bolster their lifetime value and increase their order frequency through a little proactive marketing.

A great way to re-engage active customers is to target them with current deals and specials during checkout. For instance, a clothing company might display a sale on shirts when an existing customer logs into their account and adds jeans to their cart. Doubling down on new customers can add unnecessary friction to the checkout process, but using these tactics with active buyers can boost average order value.

18. Preferred language

There are multiple ways to use this psychographic segmentation variable. You can segment customers based on their preferred linguistic tone and style. Alternatively, if you market to international customer groups, you can segment them based on the language spoken in each region or nation.

A company that engages in both B2B and B2C sales would find language segmentation very useful as well. Such a company might use informal, casual language when communicating with B2C audiences. Conversely, they might transition to more formal, professional syntax when developing content for B2B decision-makers.

19. Most viewed products

Dividing audiences based on which products — or classes of products — they view is a great behavioral segmentation tactic. This approach allows brands to retarget consumers or site visitors with ads that highlight products they are most interested in. In turn, this increases the efficacy of retargeting efforts and promotes better engagement.

Let’s say that a cosmetic company decides to use this segmentation strategy. They can create groups based on how frequently individuals view products like eyeliner, textured hair care, and dry shampoo. The brand can then create unique content for each group to showcase products in each respective category.

20. Coupon lovers

Some customers just love coupons and discount codes. Individuals who fall into this category are often willing to spend more just to unlock a discount, coupon, or other savings opportunity. Identifying and marketing your brand to coupon lovers is a great way to gamify the shopping experience and increase sales.

For instance, why not offer a 5% or 10% discount if customers spend $100 or more on your products? Customers who enjoy unlocking coupons will likely purchase additional items to reach the discount threshold. They feel as though they are getting a great deal, and you sell more products.

21. Religion

Using religion as a psychographic segmentation criterion can be tricky. But consumers are passionate about their beliefs and the important events that they celebrate in accordance with those beliefs. By marketing to specific religious groups in the days or weeks preceding an important holiday, you can increase sales and demonstrate respect for their belief system.

Christmas is a prime example. Just about every brand that sells consumer goods offers some of their best deals between Black Friday and the weeks leading up to December 25. Doing the same can help you attract customers and increase profitability as you wrap up the fourth quarter of your revenue cycle.

Ensuring that your marketing efforts are reaching the correct audiences can be tough. But you can make this task far more manageable by breaking down your customer base into segments to focus your outreach efforts.

Now that you have a sizable list of customer segment examples, you can evaluate which ones best align with your company’s goals and start optimizing your marketing strategy.

The customer segment examples outlined above can help you build your marketing strategy and more effectively target customer groups within your target audience. However, if you want to put these customer segment examples to good use, you will need the right software in place.

Adobe Audience Manager empowers your marketing team to create and activate ideal audience segments for your brand. You can engage with them on any channel or device using captivating media, thanks to our best-in-class data management platform.

To learn more about Audience Manager, watch our two-minute product tour .

https://business.adobe.com/blog/basics/customer-segmentation

https://business.adobe.com/blog/basics/psychographic-segmentation

https://business.adobe.com/blog/basics/personalized-customer-experience

A guide to customer segmentation: Strategies and examples

João Pereira

Customer segmentation is a fundamental strategy for any customer success team. It's like building a bridge. 

Just as you wouldn't start building a bridge without a blueprint, a customer success team shouldn't start their work without a clear understanding of their customer base. 

In that spirit, let's dive into the strategic importance of customer segmentation and how you can go about it. In this article, we’re going to cover:

• What customer segmentation is
• The strategic importance of customer segmentation for a customer success team
• Understanding how efficiency
• An example of segmentation

How to carry out a customer segmentation strategy

What is customer segmentation.

Customer segmentation is an indispensable tool in the arsenal of any successful customer success team. It refers to the process of dividing customers into groups based on common characteristics such as interests, demographics, behaviors, and spending habits. 

It's like a compass guiding a ship, enabling the team to understand the diverse needs of their customers and tailor their approach accordingly. 

Apart from that, a proper customer segmentation strategy can help the business understand which are the most valuable customers for the organization and take action or define specific strategies for retention of this group. 

The strategic importance of customer segmentation strategy for a customer success team

The keyword to any customer success strategy is “understanding.” The more a team understands their customers, the better they can serve them. 

Customer segmentation helps in building this understanding by providing a detailed picture of who the customers are, their needs, preferences, and tendencies. 

When a team knows that “Customer A” prefers e-mail communication, while “Customer B” is more comfortable with phone calls, they can personalize their approach, leading to increased customer satisfaction and success.

Tailoring products and services

Customer segmentation can also help in tailoring products and services according to customer needs. For instance, if a segment of customers is identified as highly tech-savvy, the team can focus on offering advanced features to this group, while for a segment of less tech-oriented customers, the team can provide more guidance and support. 

This way, the team can ensure that they are providing the right product or service enhancements to the right customers. 

Improving customer retention

Customer retention is another area where customer segmentation can play a significant role. By understanding the different customer segments, the team can identify the factors that lead to customer churn within each group and take proactive measures to mitigate them. 

For example, if a particular segment has a high churn rate due to a lack of onboarding support, the team can prioritize improving onboarding procedures for this group. 

The efficiency puzzle

Enhancing efficiency is like finding a shortcut in a marathon – it can provide you with a considerable advantage. Now, let's dive into how customer segmentation can act as this beneficial shortcut for a customer success team.

Identifying optimal communication channels

Firstly, customer segmentation allows for the identification of optimal communication channels. For example, if a particular segment of customers is more responsive to email communications, then the customer success team can use this channel to communicate with that segment, rather than wasting time and resources on less effective methods. 

This is like knowing the preferred language of your audience and speaking to them in that language, rather than trying to communicate in a language they barely understand.

Streamlining support services

Secondly, customer segmentation can streamline support services. Different segments of customers may have different levels of expertise with a product or service. By recognizing this, a customer success team can tailor their support services to meet the specific needs of each segment. 

For example, a segment of less tech-savvy customers may require more in-depth tutorials and guides, while a segment of more tech-savvy customers may prefer a self-service approach. By providing each segment with the type of support they need, a customer success team can increase their efficiency and improve customer satisfaction.

Reducing trial and error

Thirdly, customer segmentation reduces the amount of trial and error. Instead of employing a one-size-fits-all approach and having to adjust strategies when they don't work, a customer success team can use customer segmentation to identify the most effective strategies for each segment from the outset. 

This is like studying for a test based on the topics that the teacher has outlined, rather than trying to cover the entire textbook and hoping that what you studied will appear on the test.

Empowering proactive measures

Lastly, customer segmentation empowers proactive measures. By understanding the characteristics and tendencies of different customer segments, a customer success team can anticipate issues before they occur and take pre-emptive action. This leads to fewer fires that need to be put out, which significantly enhances efficiency. 

An example of effective customer segmentation

Oh, I just love a good example to illustrate a point! So, let's imagine a company called something like, "Healthy Habits," which provides an online platform for personal training, nutrition planning, and wellness resources. 

Now, Healthy Habits has a large and diverse clientele, ranging from college students to busy professionals, and senior citizens. Each of these segments might have different communication preferences, right? So, let's see how customer segmentation could help Healthy Habits' customer success team identify the best communication channels for each of these customer segments. 

For college students, the customer success team might find that social media and push notifications on the app are the most effective ways to communicate. This is because younger generations often prefer quick, easily accessible information, and they're frequently checking their phones. 

So, if Healthy Habits has a new workout plan or a flash sale, sending a quick message via Instagram or a push notification could be the most efficient way to reach this segment. It's like throwing a party when you know your friends are already in town, rather than when they are away on vacation!

Their customers who are busy professionals, on the other hand, might prefer email communications. Despite having busy schedules, they check their emails regularly throughout the day. Therefore, email could be the best way to provide these customers with more detailed information about new features or services. It's like sending a formal invitation for a business meeting – straightforward, professional, and can be addressed at a convenient time.

Now, let's consider the senior citizens. They might not be as comfortable with technology as the younger segments, and they might prefer more traditional methods of communication, like phone calls or even printed mailers. For important updates or changes, a phone call from a customer success representative could be the most effective way to communicate with this segment. It's like stopping by your grandparents' house for a chat, instead of sending them a text.

So, you see, by understanding the characteristics and preferences of each customer segment, the customer success team at Healthy Habits can tailor their communication strategies accordingly, which in turn can result in more effective and efficient interactions. 

And when communication is efficient and effective, it's like a well-choreographed dance – everyone knows their moves, the rhythm is just right, and the performance is simply spectacular!

Customer segmentation is a fantastic way for your customer success team to better understand and serve your clients. Here's a simple step-by-step guide to help you create your own segmentation strategy: 

1. Identify the criteria

Start by defining the criteria you'll use to segment your customers. These could be based on factors like customer behavior, demographic details, purchasing power, product usage, or business size. Always remember that it needs to make sense from the business perspective. The more specific, the better!

2. Segment your customers

Once you've identified your criteria, divide your customers into segments. Each segment should share common characteristics according to the criteria you've defined. At this stage, you should create customer personas to represent each group to help bring the segments to life.

3. Understand each segment

Now, dive deeper into each segment. Analyze their needs, preferences, and challenges. This will help you understand what they value most and how your product or service can meet their needs.

4. Create customer journeys

For each segment, map out the customer journey. This should include every interaction a customer may have with your company, from initial discovery to purchase and post-purchase.

5. Personalize your approach

Use the insights you've gathered to tailor your customer success strategy for each segment. This could mean personalizing your communication, offering specific products or services, or providing targeted support.

6. Monitor and adjust

Finally, remember that customer segmentation isn't a one-time process. You'll need to continuously monitor your segments and adjust your strategies as your customers' needs change.

At this stage, you should also have a predefined set of KPIs . It helps to keep track of the performance of each customer success agent and allows them to act proactively in case of need.

Final thoughts

Customer segmentation is the backbone of strategic planning for any customer success team. It allows them to navigate the complex landscape of customer needs and preferences, enhances their efficiency, allows for the tailoring of products and services, and improves customer retention. 

It's like a master key, opening up the door to customer success or like having a map during a road trip – it leads you to your destination faster and with fewer detours.

Investing in customer segmentation isn't just an option, it's a strategic necessity.  

Written by:

Jaõa is a passionate advocate for positive company culture and customer experience. He deeply understands that happy employees lead to happy customers, which in turn leads to even happier employees.

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Top 10 Customer Segmentation Templates with Samples and Examples

To scale quickly but profitably, early-stage companies must target specific populations that are the most similar to their current customers rather instead of casting a wide net. Customer segmentation is the fail-safe method to d this.

Customer segmentation: What is it, and why is it important?

Customer segmentation is dividing potential customers into different categories in a given market. That categorization is based on clients with comparable needs, purchasing preferences, etc. Segmentation aims to focus marketing efforts on your ideal customer profile (ICP) or customers who are most likely to purchase your product or service. Customer segmentation can allow marketers to reach out to each customer in the most effective way possible. 

According to Bain & Company, companies that tailor their strategies to consumer segments produce a 15% yearly profit growth compared to 5% for companies that do not. lien segmentation has the potential to drive enormous growth.  

This way, you can give the buyers customization that 73% of them now expect from brands.

What can SlideTeam Customer Segmentation Templates provide?

Our advanced Customer segmentation templates enable you to:

• Create products that fix customer pain points.
• Simplify sales processes. 
• Increase revenue via social media marketing. 
• Improve eCommerce client retention.

Download these templates to effortlessly maximize the impact of every marketing action to convert new customers, increase existing customer spend, and reduce customer churn rate.

Here's a rundown of our top 10 customer segmentation templates to help you choose the best one.

Let's get started.

Template 1: Customer Segmentation Targeting and Positioning Guide for Effective Marketing Complete Deck 

Using this fully adjustable PPT Template, tailor your promotions, offers, and sales metrics to the needs of a specific group. It contains a detailed description of the customer segmentation process and several forms of consumer segmentation. It also covers several client segmentation analysis methodologies such as STP Segmentation, Targeting, and Profiling analysis and RFM Recency, Frequency, and Monetary analysis. Download this template now to adopt customer segmentation-based branding and marketing initiatives.

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Template 2: B2B Customer Segmentation Approaches PowerPoint Presentation

This PPT Layout, which includes several agendas such as industry outlook, business performance overview, competitive landscape analysis, business goal setting, and various sales strategies, can provide accurate information about potential and target customers to help you step up your marketing game. With the help of this template, you can implement a customer-centric sales technique for a better and brighter future for the company.

Template 3: Potential Customer Segmentation PowerPoint Template Bundle

A strong pitch works as the glue to bind your target buyers to your products, boosting brand awareness and effectiveness of marketing methods. We created this PowerPoint Slide to assist you in gaining a competitive advantage. It consists of four major types of market segmentation, allowing you to offer highly personalized and relevant messages. Download it from the link below.

Template 4: Customer Segmentation to Perform Need Analysis

This PPT Template can serve as your one-stop shop for determining your target market. The template includes factors such as size, expected growth, price sensitivity, and overall appeal, which are necessary for creating a customer need analysis. Download it now to separate your potential consumers into discrete categories and use your valuable people and capital resources more efficiently.

Template 5: B2B Buyer Journey Map b2B Customer Segmentation Approaches PPT Infographics

Buyer journey mapping, or customer journey mapping, is a simple and effective method for "walking in the buyer's shoes" from brand awareness and identifying which touchpoints and interactions are the most important to success. This frequently begins with the "Trigger," or the beginning of the path to purchase, and finishes with "Relationship Management" or "Renewal." Use this template to ensure no stone is left unturned in the buyer journey touchpoints. This PPT Preset can highlight key touchpoints and know where your brand is strong and weak along the journey.

Template 6: Needs-based Customer Segmentation

Over the last two years, hundreds of organizations ranging from, scaling startups to multinational tech firms to non-profits have, used this PPT Template to develop and manage data-driven research projects that identify the highest priority requirements of specific groups of individuals. You can use this needs-based segment PPT Layout to power all elements of your startup or product strategy. Download it now from the link below.

Template 7: Four Gears for Innovative Strategy and Customer Segmentation

Imagine you're brainstorming your next primary inventive strategy or customer segmentation plan, and you need a visual tool to help you organize your thoughts and impress your colleagues. This is where our Four Gears PPT Template comes in, a game changer that will take your presentation to the next level. The design is sleek and futuristic, with four interlocking gears representing the crucial components of your approach. The gears are color-coded to make it easy to discern and comprehend their roles in the plan. Download this template right away!

Template 8: Customer Segmentation with Demographic and Geographic

The template allows organizations to make informed decisions about product development, pricing strategies, and sales methods, by providing a simple and organized manner to analyze consumer data. Businesses can use this template to discover their most profitable customer categories and design targeted marketing efforts that convert leads into sales.

Template 9: Customer Insights Customer Segmentation Economic PPT 

This PPT Slide can help you better understand the costs and benefits of serving different customer segments. Leveraging customer insights and segmentation using this economic template can benefit business owners, including more effective marketing, increased sales, and improved profitability.

Template 10: Three links for Customer Segmentation and Revenue Generation

Every business owner understands the value of getting to know their customers. This PPT Template will assist you in accomplishing this goal. This slide makes analyzing customer data and finding relevant client segments easy. You may design targeted marketing campaigns and personalized experiences to boost customer happiness and loyalty, by better understanding your customers. The template also assists you in identifying the most profitable consumer categories, allowing you to concentrate your efforts on regions that will generate the most money.

Final Words

Customer segmentation increases conversions by allowing you to discover more about your customers. It also aids in the allocation of appropriate and effective marketing resources, as well as the maximization of cross- and up-selling opportunities. Marketing materials distributed through customer segmentation are more valued and appreciated by customers. Utilize these templates and begin developing your consumer segmentation plan. You have everything you need to exceed your customers' expectations. 

Explore this compelling and well-researched Market Segmentation Process guide to develop product offerings that attract the correct clients.

FAQs on Customer Segmentation

What are the four types of customer segmentation.

The following are the four major types of market segmentation:

• Demographic: This type of market segmentation involves dividing a market based on demographic characteristics such as age, gender, income, education, and family size.
• Psychographic: This segmentation method considers the psychological and emotional characteristics of customers, including their values, beliefs, lifestyles, interests, and personality traits.
• Geographic: This segmentation method divides a market based on geographic factors such as location, climate, population density, and cultural preferences.
• Behavioral: This segmentation method focuses on customers' behavior towards a product or service, including their usage rate, brand loyalty, willingness to pay, and other factors that affect their purchasing decisions.

Why is customer segmentation crucial?

Customer segmentation categorizes customers into groups based on shared qualities, behaviors, or interests to provide more relevant experiences. Customer segmentation assists firms in increasing market share, identifying their best consumers, and reaching those customers through the most effective channels.

What is a segmented customer example?

A practical customer segmentation example is segmenting your consumers based on their age. If you have items or services that appeal to multiple age groups, it is a good idea to develop age-based segments to maximize the efficacy of your advertising.

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How to Write a Customer Analysis Section for Your Business Plan

Free Customer Analysis Template

Ayush Jalan

• February 12, 2024

A successful business idea equips customers with the tools necessary to help them reach their goals and fulfill their needs—professional or personal. To create such products and services that meet (and exceed) your customers’ expectations, you need to study their personas via customer analysis.

Customer analysis is a vital part of your business plan that helps you identify, define, and understand your customer base. Analyzing your customers is also crucial for creating a successful marketing plan, as it helps you communicate better with your customers.

In this article, you will learn how to conduct a customer analysis section for your business plan paired with a customer analysis example to help you create customer personas to study their personality traits, goals, challenges they face, and more.

What Is Customer Analysis?

Customer analysis is a comprehensive understanding of your customer base. It helps identify and describe your ideal customer. Through this in-depth analysis, you determine their needs, challenges, goals, and other important considerations. Given this info, it then helps you understand how effectively your products cater to them.

It further helps you optimize your strategic marketing process to create targeted advertisements, customize and prioritize specific features during product development, and make adjustments in your current business plan to align with your customer’s ever-changing demands.

How to Write a Customer Analysis Section

Writing a customer analysis includes extensive research and collecting data from various sources. This data consists of qualitative and quantitative aspects which help you write an accurate customer analysis for your business plan.

Writing a customer analysis has four main steps:

Step 1: Identify your customers

The primary step is to identify your potential customers and define their specific characteristics about them. The attained factual information is segmented into the following categories:

• Demographic: Age, gender, income
• Geographic: Location, type of area (Rural, suburban, urban)
• Psychographic: Values, interests, beliefs, personality, lifestyle, social class
• Technographic: Type of technology the buyer is using; tech-savviness
• Behavioral: Habits, frequent actions, buying patterns
• Industry (For B2B): Based on the industry a company belongs to.
• Business size (For B2B): Size of the company

To obtain the above data, a great place to start for established businesses is your customer database. If you aim to expand this information, you can use your existing communication channels to gather further details through surveys.

If you are a startup, conducting an audience analysis  might seem impossible as you don’t have an existing customer base. Fortunately, there are numerous ways through which you can study your potential customers. A few of them are:

• Identifying who would benefit from your product/service
• Analyzing your competitors to understand their target customers
• Using social media to prompt potential buyers to answer questionnaires

Want to create a Customer Persona in Easy Steps?

Generate valuable customer insights in minutes with Free Customer Persona Generator .

Step 2: Define the needs of your Customers

Now that you have identified your customers, the next step is to understand and specify their needs and challenges. This is the step where you need to go hands-on with your research. Getting to know your customers’ needs helps you determine whether or not your product or service hits the mark.

To understand the needs of your customers, you can adopt the following approaches:

1. Engage directly with potential Customers

A very reliable way to get to know your customers is to simply ask them, either in person or on a call. You can reach out to your customers, conduct one-on-one interviews, create focus groups, and invite buyers to test your new products. You can collect an ample amount of data through these techniques.

However, we recommend prioritizing accuracy over the quantity of data.

A technique that can help you get a deeper insight into your customer’s needs and opinions is the five whys technique . While practicing so, be mindful of the way you conduct the interview. It is essential to keep the customers in a comfortable and conversational environment to attain accurate answers.

2. Collect data from your Customer support

Customer support is the place where you can find feedback and criticism given by your customers. Analyzing this data helps you understand the pain points of your customers. You can further elaborate on this data by interacting with the customers who had issues with your products.

3. Run surveys and mention statistics

Talking to your customers helps you get qualitative information that you can use to alter your product or services according to your customers. The next part is to attain quantitative information, in other words, presenting numbers to support the previous data.

Conducting surveys is one of the commonly used methods for quantifying information. You can conduct in-app surveys, post-purchase surveys, or link surveys in email and apps, etc.

The second method is by collecting statistical data to support your conclusions from the interviews. These include stating studies related to customer choices, results from popular surveys, etc.

Step 3: Create a Customer Persona

Now, it’s time you present the information using a customer persona. A customer persona is a representation of a segment of customers with similar traits. Creating customer personas helps you process the data more efficiently.

You can use customer persona templates that are available online. To help get you started, we have created a customer persona example.

Customer Persona Example

Customer profile example of an internet service provider:

• About: A lot of customers remain at home and have a minimal and easy-going lifestyle. They need high-speed, interruption-free internet access.
• Demographics: Age is between 30 and 40, has a laid-back lifestyle, lives in suburban areas, and the income range is between $10,000 to $40,000.
• Professional role: Shop owners, employees, freelancers, etc.
• Identifiers/Personality traits: Introverts, like routines, makes schedules prefer online shopping, and stick with the companies they trust.
• Goals: Wants easily available service, and 24×7 customer support, prefers self-service technologies and chatbots over interacting with representatives.
• Challenges: Fluctuating internet connection while working or consuming media. Not enough signal coverage.

Step 4: Explain the product alignment to the Customer’s Needs

You’ve gathered info and created customer personas. The final step is to explain how your product or service caters to the needs of your customers. Here, you specify the solution you offer to your customers to tackle the challenges they face.

Mention the USPs of your product and its features, and they benefit the customer. Here, you also mention how your offerings make your customers’ lives better.

Create Better Solutions with Customer Analysis

Understanding your customers inside out helps you assist them better in solving their problems while also achieving success. Analyze your customers as often as required to stay updated about their ever-changing needs.

This helps you create better offerings to consistently fulfill their expectations. As a result, this builds up loyalty over time with each success.

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About the Author

Ayush is a writer with an academic background in business and marketing. Being a tech-enthusiast, he likes to keep a sharp eye on the latest tech gadgets and innovations. When he's not working, you can find him writing poetry, gaming, playing the ukulele, catching up with friends, and indulging in creative philosophies.

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10 Customer Segmentation Examples to Scale B2B Revenues

Kate williams.

1 February 2024

10 min read

Table Of Contents

• Customer segmentation definition
• Customer segmentation examples
• Customer segmentation challenges
• Importance of segmentation
• Best practices to follow

Need some real-world customer segmentation examples to better market and grow your B2B business? In this article, we’ll cover:

• The B2B customer segmentation definition
• 10 B2B customer segmentation examples
• Challenges involved in B2B customer segmentation
• Benefits and importance of B2B customer segmentation
• Best practices for conducting B2B customer segmentation

What is B2B Customer Segmentation?

The customer segmentation definition is dividing customers into different segments based on shared characteristics . By segmenting your prospective customers, you can offer them the right kind of content and marketing strategies as you will understand their needs, behaviors, motivations, and purchasing triggers.

“If you are not thinking segments, you’re not thinking.”

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10 B2B Customer Segmentation Examples

Let us look at some of the top B2B customer segmentation examples that will help businesses to increase their output.

• Firmographics
• Customer Sophistication
• Key Accounts
• Organization
• Decision-Makers
• Profitability
• Jobs-To-Be-Done

Customer Segmentation Examples #1: By Firmographics

B2B marketers use firmographics in the same way B2C marketers employ demographic data. Firmographics segmentation is all about segmenting your B2B customers based on shared qualities. The groups are divided into aspects such as business size, company location, technologies used by the customers, and so on.

• Firmographic data is easy and inexpensive to collect.
• It works perfectly for top-of-the-funnel leads. Campaigns that are implemented to pass information will be the best use of firmographics segmentation.
• The data from here can also be easily transferred to the sales and marketing team, who can immediately put it to use.
• But the only downside is that the firmographics data by itself does not allow you to draw a lot of insights.

B2B segmentation needs to be a bit more tactful than just assuming that a two-year-old startup might be looking for a product similar to yours just because the other customers in the segment were looking for one.

Customer Segmentation Examples #2: By Tier

Tiering your customers is done based on how well they match your business objectives. For example, you can use business tiering based on how well they can afford your premium product how long they would need your product, or how closely they look like your identical customer.

• Tier-based segmentation ranks the prospective customer based on how much value they can bring to the table.
• When you are working with an existing set of customers, demand-generation marketers use tiered segmentation.
• Instead of focusing only on lead generation activities , this segmentation lets you make decisions based on internal data and from other sources.
• This type of segmentation has gotten a boost because of account-based marketing (ABM). ABM focuses on a smaller number of accounts.

In ABM, the marketing and sales teams work together to identify the accounts that are most likely to become a customer. They are then directed to personalized content and strategies that will make closing the deal with the account pretty easy. ABM makes you focus on the most important prospects and lets you get the maximum leverage from these accounts.

Customer Segmentation Examples #3: By Need

It groups different types of B2B customers based on what they need from a product or service. Since it is based on needs and attitudes, it is more subjective than firmographics segmentation.

• Need-based segmentation focuses on your buying motivations.
• It helps you target people who have shared pain points.
• Some of the shared factors are personality traits, personal values and beliefs, motivations, pain points, decision-making criteria when purchasing a product, content interests, and so on.

This approach helps the companies enable sales and marketing teams to develop targeted strategies together.

Customer Segmentation Examples #4: By Customer Sophistication Level

In this type of segmentation, the business’ maturity is considered.

• Instead of looking at a customer’s firmographic information or potential value, you look at the awareness of the problem they face and understand how your problem solves it.
• Using the sophistication-based segmentation method, it is possible to create tailor-made campaigns.

For example, a startup that doesn’t have a lot of customers might not require a full-fledged and expensive CRM tool . Instead, they could use the available free tools.

Customer Segmentation Examples #5: By Behavior

Behavioral segmentation is considered a strong complement to tiered segmentation as it helps maximize the value of the account. Behavioral segmentation looks at how your existing customers interact or use your product.

• It will make you see how your customers benefit from your product, and it will also give you an idea of those customers who are more likely to churn.
• Based on how much value your customer is getting from your product, you will know if there are opportunities to cross-sell and upsell . You will know when is the right time to send renewal emails.
• It will tell you whether a customer has shown more interest or has it reduced over time.

Demand-generation marketers will be able to understand the trends and segment the target audience accordingly to send them the right marketing campaigns. Customers who are at risk of leaving your business can be given extra perks to make them stay.

Customer Segmentation Examples #6: By Key Accounts

There is no prize for guessing this: ‘No two business accounts are the same.’ You cannot treat all of them in the same way, nor can you expect that all of them will behave in the same way. In an ideal world, each segment will consist of only one customer, and your activities should be in providing them with the right kind of content and solutions. Have you heard of the Pareto Principle ? Leveraging this principle for customer segmentation, this is what you will get: ”20% of your key business accounts will be responsible for 80% of your business success.” It means that 20% of your customer base is your most valuable one. You need to customize your product to cater to the needs of this clientele. They are the ones who give you the most revenue. Using key account management software can help you achieve better results with these customers. You can consider each account as a separate segment and spend more time preparing marketing strategies for them. You can even develop new products just for this 20% because that’s how valuable they are to your bottom line. That’s what key accounts segmentation focuses on.

Customer Segmentation Examples #7: By Organization

You can also segment your B2B customers based on the kind of organization they are. Some of the factors that are included in segmentation by the organization are as follows: industry, number of employees, approximate revenue, legal structure, and geography. For example, the solutions that you offer for SMBs and enterprises in the same industry might be different. Since it is firmographic data, this type of information is easy to collect, and it stays the same for a long time. Companies do not change their legal structure or industries that fast. It will take a lot of time and they can come up with the right strategy positioned to address their needs. But the only issue with such an approach is that even companies of the same size and in the same industry might not want the same things. For example, a SaaS-based business might not want to engage the services of an external human resource consultant as they might want to cut costs. But a similar company of the same size might want to do everything by the books and want to work with a proper HR consultant, and they might be a prospective customer for your HR-based tool. If you are targeting only based on the above factors, then the results will be different.

Customer Segmentation Examples #8: By Decision-Makers

There are times when you should target at an individual level rather than at the organization level. For this, you need to identify the different buyer personas based on the individuals who are decision-makers, not just at the organizational level. Segmenting by decision-makers has the same set of pros and cons when you divide it by organization.

• The sales teams can find out the decision-makers in the organization. There are tools like Email Hunter and Snov IO that let you find the email addresses and contacts of these decision-makers.
• The reason why we are using decision-makers to segment the target market is that a decision-maker in Company A might not have the same purchasing decisions similar to that of a decision-maker in Company B.
• If you want to ensure that your messaging and information strategy is on point, then the decision-maker-based segmentation type is a big bonus.

It is easier to communicate with individuals than it is to communicate with organizations. Focusing on individual data provides a lot more fodder for sales and marketing teams to get their job done. If you want to build relevant messaging, decision-maker-type segmentation is crucial. Here are some of the drawbacks of individual-level segmentation:

• There might be a number of decision-makers in a single company. If each of the individuals has different needs, then it is going to be really difficult to create one that will satisfy all of them.
• If you want to educate the audience about the product, then segmentation by decision-makers is not ideal. B2B products are built for the business’ success; providing individual-only data is not going to help.

Customer Segmentation Examples #9: By Profitability

One more interesting B2B segmentation is how businesses segment customers based on how well they match the goals of the business. In profitability-based segmentation, here are some of how you can divide the organizations:

• The expected profitability of the targeted account
• The extent of how much they match your sales and marketing strategies
• What are the chances of higher sales opportunities?
• Will they be able to recommend more customers in your direction?
• The expected lifetime customer value of the organization

Segmentation by profitability allows businesses to allocate their resources in a better way. For example, they would rather target businesses who can afford their product instead of reaching out to self-funded startups who might not be able to afford you even if they have requirements. It reduces the customer acquisition costs for your business as you only engage with a few businesses. If you are into account-based marketing, this type of segmentation will be a powerful enabler since ABM also targets only a handful of clients, and they pour a lot of their resources into a single targeted account. But there are problems with this segmentation, too. At times, you never know what a company’s profitability is as private companies do not have to share their information publicly. As we had discussed earlier, no two organizations that have the same profitability are likely to have the same needs.

Customer Segmentation Examples #10: By Jobs-To-Be-Done (JTBD)

The JTBD framework is one of the least-used but incredibly effective B2B customer segmentation examples. It offers a different way to look at customers and prospects, which will assist in understanding their needs and attitudes.

• JBTD is of great help to improve your marketing and innovation.
• According to JTBD, when companies launch a new product or are trying to acquire more customers, they focus on their existing customers. Because of this, they end up narrowing their market.

Instead of concentrating on how to make more sales, they should invest their time and effort in the job that the B2B customers are hiring them for. The most important thing here is that you define the job by its outcomes, not by its functionalities. When you reframe the ‘job’ in terms of outcomes, your thinking and approach change, you will give yourself room to innovate, and it will greatly benefit the way that you market the products.

Challenges Involved in B2B Customer Segmentation

Even though there is a lot of clarity these days about B2B customer segmentation, it still poses a number of challenges once you get underway with the process. Let us look at a few B2B customer segmentation challenges.

• The decision-making is complex as there are a number of variables involved. Eg, technical experts, board members, production managers, products, etc.
• B2B products are more complex than B2C, so to segment them properly, you need to look at a 360-degree angle .
• B2B target audiences are a small set, so you need granular data to improve your odds.
• You need to create personal relationships in B2B marketing . It is not always easy, as business decision-makers are difficult to build personal relationships with.
• Since they are long-term buyers, B2B decision-makers take a long time to decide, thereby increasing the duration of the sales cycle.
• B2B markets have fewer behavioral and needs-based audience segments .

Importance of B2B Segmentation

Each of the customer segmentation types has its own set of pros. Let us look at why customer segmentation analysis is an important part of a business activity that cannot be taken for granted.

• It is used to improve customer retention. Customers who feel that their issues are handled well will report satisfying experiences and are more likely to stay with you.
• Improves your business focus as you will target only a handful of clients.
• Segmentation requires you to keep a clean database. That will help in finding trends and common characteristics that you might have overlooked.
• Proper segmentation enables you to consistently meet the demands of your B2B clients , thereby increasing your revenue in the process.
• Customer segmentation will give you enough firepower to work on newer products as you understand their problems and pain points even more deeply.
• When you learn more about your customers, you will also become familiar with the types of information sources that they regularly consume , and it will enable you to provide them with a better experience.
• You will find new markets to spread your business.

Best Practices for Conducting a B2B Customer Segmentation

In a segmentation project, there are a number of principles that you have to clearly follow if you want to get the maximum benefits out of this. Below are some of the best practices for B2B customer segmentation.

• Be flexible about the type of segmentation that you want to indulge in
• In segmentation, change management is important. So make sure that you have the leadership buy-in before beginning your work in this
• Before you start working on the segmentation, make sure that you review the data that is already available to you.
• Make use of Surveys to do enough market research and gather data.

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• Your objective should be to have granular data about your customers so that you can make your segments as refined as possible.
• Do not just interview your customers for the segmentation exercise; involve your prospects, too
• Once you have decided on the various segments, educate the internal stakeholders to understand and recognize the segments

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How to Write a Customer Analysis

Elon Glucklich

9 min. read

Updated October 27, 2023

You’ve been hard at work conducting market research into your potential customers— developing a deep understanding of industry dynamics and the potential size of your market .

Hopefully, you’ve also spent time interviewing potential customers—learning about their behaviors and needs, and digging into publicly available data to support your research. 

But you still need to document these findings in a way that gives you an actionable road map to grow your customer base.

This is where a well-written customer analysis can be extremely useful. 

Including a customer analysis in your business plan will boost your marketing efforts by identifying your target customers , their needs, and how your product or service addresses these needs.

• Customer analysis vs market analysis

A market analysis is a broader exploration of the market and potential customers.  A customer analysis zooms in on the specific behavioral or demographic characteristics of individual customer segments in your target market.

The market analysis includes details like the number of customers you hope to serve and the types of competitors you must contend with. 

By contrast, the customer analysis looks at the specific attributes of your potential customers – their personal habits, values, beliefs, and other characteristics that might affect their purchasing decisions.

• What should a customer analysis include?

Demographics

Some of the earliest information you’ve collected probably about your customers includes:

• Gender/ethnicity
• Income level
• Geographic area
• Education level

Example: Suppose you own a business that creates an environmentally friendly cleaning product . Your customer demographics might include: 

• Age range: 30-60 (old enough to have used a variety of cleaning products in their homes)
• Income: Above average (more likely to buy a higher-priced alternative to discount cleaning products)
• Education level: college degree or equivalent (high enough education level to understand the product’s societal benefits).
• Employment: full-time employee

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Values and beliefs

This section captures the psychological and emotional factors that influence customer behavior. 

• Cultural backgrounds
• Ethical values

Let’s return to the environmentally friendly cleaning product example. You are more likely to attract customers who prioritize sustainability and are willing to pay more for products that match their values.

Buying behaviors

Analyzing buying behaviors involves understanding how, when, and why customers purchase. These behaviors impact:

• The channels customers prefer for shopping
• Price sensitivity
• Factors that trigger a buying decision

Example: Suppose you’re running an environmentally friendly cleaning products business. In that case, you might discover that most of your customers buy their cleaning products from a magazine for homeowners or that they typically buy multiple cleaning products simultaneously. 

Technology use

Nearly three-quarters of small businesses have a website . Even if your business doesn’t have one, your customers are, without a doubt, browsing the internet. 

So it’s critical to understand how your target customers interact with technology and to set up an online presence for your business if you aren’t already active. 

Key questions about customers’ technology habits include:

• Are they active on social media? If so, which platforms? 
• Do they prefer online shopping or in-store visits? 
• Are they more likely to respond to email marketing, blog content, or social media campaigns?

Example: Let’s say you discover that significantly more of your target customers visit websites like yours on a smartphone than a desktop. In that case, it would be important to optimize your website for mobile viewing or develop a user-friendly app . 

• 5 steps to write a customer analysis for your business plan

Now that we understand the individual pieces of a customer analysis, we’ll examine how to write a customer analysis for your business plan .

1. Use existing data

Regardless of your country, there are likely numerous sources of data published by government agencies, private industry, or educational institutions that could be relevant to your business.

Finding existing data is the best starting point for your customer analysis. It’s easy to find, it’s regularly updated, and it’s immensely valuable for providing context for your research. 

For instance, if you determine that your target demographic is people between 30 and 60, Census data can help you determine the number of residents in your selling area within that age range.

We’ll look at some examples of publicly available data for businesses operating in the United States.

U.S. Census Bureau

The Census Bureau publishes official population counts for the country, states, and local communities. Demographic characteristics like age, gender, and race sort the data. Census data also includes useful data for businesses, such as the total number of businesses, employment counts, and average incomes in local communities across the country.

Bureau of Labor Statistics

Data from the Bureau of Labor Statistics tracks changes in the U.S. workforce and the overall state of the labor market. The BLS publishes the Consumer Price Index , tracks consumer spending, and gauges overall consumer confidence. 

Examining this data can give you insights into the willingness of consumers to pay for your product or service.

Bureau of Economic Analysis

The Bureau of Economic Analysis takes a broader look at the performance of the U.S. Economy. You can use BEA data to find personal income and corporate profit data by industry. 

If you make a product or service used by other businesses, these figures can help you understand the financial health of the broad customer base you’re targeting.

Federal Reserve

The Federal Reserve publishes various financial reports, such as consumer credit and spending statistics , as well as the health of banks. 

This data can give you important context about the financial health of your customers, which could help you determine pricing strategies—like whether you should offer flexible payment plans.

Industry associations

There are thousands of private sector industry associations in the United States alone. These organizations not only advocate for the businesses in their field. They provide members with a wealth of helpful information, such as “state of the industry” reports and business surveys. 

You should leverage customer data from these peer organizations as a business owner.

Academic institutions

Many university business schools make their research publicly available online. Scholars make a career out of researching market and industry trends, and much of their work is available through online searches. 

2. Review customer feedback

One of the most direct ways to show an understanding of your customers in your analysis is by reviewing their feedback.

If you’re a new business without direct customer feedback yet, that’s OK. Instead, look around at what people are saying about your competitors . You might find common complaints from customers in your industry about the products available. 

You can then reach out and interview potential customers to better understand their needs.

If you have an existing business, there may already be reviews of your company on Google or social media sites like LinkedIn. Doing so can help you determine if customers are struggling to use your product or have suggestions for improvements. 

Read as many reviews as possible, and use them to show an understanding of your customers’ needs in your analysis.

3. Use third-party data

So far, we’ve discussed free, publicly available sources to find information about your customers. 

But for those willing to dig deeper, third-party data providers can help you uncover information that’s truly unique to your business and your customers.

Google Analytics

Third-party data providers like Google track the activity of users across numerous websites. Google has its own tool, Google Analytics , which makes that information available on your company’s website.

This data is a gold mine for understanding your customers. Besides giving you a demographic and geographic breakdown of your visitors, it can tell if they view your site on a desktop or smartphone, what pages they’re clicking, navigating around your site, and much more.

For new business owners, Google Trends is a powerful tool to discover what people are searching for online. 

For the environmentally friendly cleaning products business we’ve used as an example—you could see how many people are searching on Google for information about products like floor cleaners or dishwasher detergents.

Social media metrics

If your business uses social media, there are plenty of tools to help you understand your audience on these platforms. 

Many social media companies make their data available to businesses at a cost. For instance, the Facebook Audience Insights platform gives you information about the types of people who visit your page or interact with your posts.

There are also third-party tools like Hootsuite, Sprout Social, and Buffer, which track various metrics across social media platforms.

Wherever you find the data, including social media metrics in your customer analysis provides instant feedback about how customers interact with your business.

Specialty tools

Software companies have created numerous tools that collect and analyze customer data from various online sources. 

Audience research tools like SparkToro and FullStory analyze large amounts of data online and spot trends—such as the topics people discuss online and which websites or social media accounts those audiences visit. 

These are insights that would be incredibly time-consuming to get directly from customers. However, understanding where potential customers spend time online and what they talk about can easily turn your analysis into a targeted marketing campaign that addresses their needs.

4. Create a customer persona

After gathering and analyzing all this data, you should have plenty of information about your customers. The next step is to create a customer persona . In case you need a refresher, the customer persona is a semi-fictional representation of your ideal customer based on your collected data.

For example, a customer persona for that environmentally friendly cleaning products business will reflect that audience’s demographics, behaviors, and needs. 

In addition to being an effective tool to focus your marketing efforts, creating this persona can help determine the size of your customer base and how to prioritize your time and resources to attract them to your business. It’s also helpful to show potential investors you know your target audience.

5. Connect to your problem/solution statement

Many business plans include a problem and solution statement as early as the introduction. It’s a reasonable way to start, considering that successful businesses identify a problem and provide a solution. 

So as you put your customer analysis together, ensure the research is grounded in the problems they’re experiencing. Doing so will keep you accountable by making you validate your product or service as the solution they need.

• Get started with your business plan template

A customer analysis is a key part of any business plan. But it’s just one piece. At Bplans, we take some of the pain out of business planning. 

We’ve developed a free business planning template to help reduce entrepreneurs’ time to create a full, lender-ready business plan.

Bplans has also collected over 550 free sample business plans across numerous industries. Find one that fits your industry to get inspiration and guidance when writing your plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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The Lean Canvas paints a clear picture of a startup’s vision, and central to this picture is the ‘Customer Segments’ block. If you’ve wondered how to identify and engage with your most valuable customers using Lean Canvas, then this section is for you.

Customer Segments in the Lean Canvas Template are the cornerstone of any startup’s success. In the ever-evolving business landscape, it’s crucial to identify and connect with the right audience. Customer segmentation empowers startups to allocate resources effectively, ensuring that their product or service reaches those who will benefit most from it. This strategic approach not only conserves valuable resources but also enhances the chances of sustainable growth.

Additionally, understanding your customer segments has a far-reaching impact across the Lean Canvas. It sharpens your value proposition, informs your choice of marketing channels, and guides decisions on pricing and revenue streams. However, the journey to identifying customer segments is not without its challenges. Startups may encounter analysis paralysis, rigid mindsets, or over-segmentation issues. The key to overcoming some of these challenges is to start simple, remain adaptable, and strike the right balance.

Table of contents

So why is better understanding who your customers are central to business development, the lean philosophy and its role in customer segmentation, navigating customer segments in the lean canvas, effective customer segmentation: looking beyond mere demographics, how your customers influence other aspects of your lean canvas, challenges in identifying your customer segments and ways to overcome them, wrapping up: so why is understanding customer segments crucial for business development in the lean canvas model.

In business, and especially startups, resources are often limited. Thus, time, money, and effort need to be channeled effectively. This is where identifying customer segments comes in. By understanding who you’re serving, you can tailor your product, pricing, and promotion to resonate specifically with that group.

The Lean philosophy, whether in project management, manufacturing or startup development, is deeply rooted in minimizing waste and maximizing value, aligns seamlessly with the concept of customer segmentation. By focusing on customers who need the value your product offers and are willing to invest in it, you streamline your efforts and increase your chances of success. The Lean Canvas Template acts as a guide in this journey, offering a structured framework for understanding and refining your customer segments.

Navigating customer segmentation through the Lean Canvas Template requires a mix of educated assumptions, market research, direct engagement with potential customers, and a willingness to pivot based on real-world feedback. It’s an iterative process that keeps your business agile and responsive to market dynamics. Effective segmentation delves beyond demographics, considering needs, pain points, behavioral patterns, and psychographic insights to create a holistic picture of your audience.

Exploring customer segmentation through the Lean Canvas Template blends a methodical approach with a balance of intuitive insight and concrete data.

Here’s what you need to know:

• Begin with Educated Guesses (Assumptions): Every business idea starts with assumptions. Based on the problem that your product or service solves, who do you believe will benefit the most? List them out.
• Scan the Market: Before diving deep, take a step back. What does the market data suggest? Are there existing studies or surveys that can shed light on your target customer groups?
• Engage with Potential Customers: Nothing beats direct interaction. Have 15-20 minute conversations with your target customers. The aim? To listen more than you speak!
• Refine Based on Customer Feedback: If your interactions reveal that your solution resonates more with a customer group you hadn’t considered, it’s time to pivot (i.e. shift your business’s direction to meet the needs of the market). Adjust your segments based on real-world feedback.
• Continuous Iteration: The Lean Canvas is a living document. As your product evolves, so will your customer segments. Regular check-ins will ensure you remain aligned with them.

While demographics are a starting point, effective segmentation goes deeper than age, race, or ethnicity. You also need to know the psychographics of your customers to better understand their motivations :

• Needs and Pain Points: What problems does your product solve for them?
• Behavioral Patterns: When and how would they use your product?
• Insights: What are their attitudes, values, and lifestyles?

Having an in-depth understanding of who your customers are, and what motivates their behaviors shapes not only your product design but also informs where you focus your marketing efforts.

A clear understanding of your customer segments creates a ripple effect across your Lean Canvas:

• Your value proposition becomes sharper, tailored to address specific needs.
• You can select channels that your customer segments frequent (meet them where they are), ensuring higher visibility.
• Decisions around pricing and revenue streams become clearer based on your customer segments’ purchasing behaviors and preferences.

Customer segmentation, while pivotal, comes with its set of challenges in today’s dynamic and data-saturated market environment. Recognizing these hurdles and adopting strategic approaches to address them can make the difference between an effective segmentation strategy and one that misses its mark. That said, here are some of these common challenges and their potential solutions:

• Analysis Paralysis: With vast amounts of data available, startups sometimes get stuck in endless analysis. The key? Start simple. Refine as you go.
• Rigid Mindsets: Business landscapes change. If you’re too attached to an initial idea of your customer segments, you might miss out on opportunities. Be adaptable.
• Over-segmentation: While it’s essential to be specific, creating too many customer segments can dilute your efforts. Find a balance.

Defining and understanding your customer segments goes beyond mere conceptual work. The Lean Canvas Business Model is about tailoring each facet of your business to the specific needs of your audience. As you continually adapt and enhance, bear in mind that businesses thrive by addressing real-world issues. The more you refine your target audience, the more effective your solutions become.

In conclusion, customer segments are the lifeblood of a startup’s success. They shape every facet of your business development, from adding key features to new products and services to having clear marketing strategies. The more intimately you understand your audience, the more effective your solutions become. In a world where innovation is paramount, the Lean Canvas Template offers a practical and systematic approach to harnessing the power of customer segments, ultimately driving your startup towards profitability and sustainability.

1 Explore More About Lean Startup Philosophy At Leantime, we’re passionate about helping you navigate the world of entrepreneurship and innovation through the lens of the Lean Startup Philosophy. If you’ve found this article intriguing and insightful, you’ll definitely want to check out these recommended reads to dive even deeper into the world of Lean Startup:

Here are some other articles you may be interested in…

• Establishing Project Value with Leantime’s Canvas
• 5 keys steps to creating a Successful Project: Planning & Strategy
• Addressing the ‘Problems’ Block in the Lean Business Canvas Framework
• Lean Business Solutions
• Maximizing Project Value with Leantime’s Lean Canvas Template

Jenny Jackson

Jenny Jackson, a seasoned Entrepreneur-in-Residence (EIR), brings a wealth of expertise in innovation process, design thinking, and research & development. Since 2019, she has demonstrated her commitment to fostering business growth as a dedicated Business Mentor for Charlotte Launch (formerly Ventureprise Launch) and as a leader guiding two research teams in the prestigious National Science Foundation’s (NSF) iCorps program.Jenny's journey in entrepreneurship and innovation has been marked by a series of impactful roles. Prior to joining the dynamic team at the Center for Entrepreneurship and Innovation at UNC Charlotte, she provided invaluable support to startups, labs, and incubators, showcasing her dedication to fostering emerging ventures.Jenny holds a Master's in Organization Development from Queens University of Charlotte and a Bachelor’s in Industrial Technology with a concentration in Graphic Communications from North Carolina A&T State University.Beyond her professional achievements, Jenny is an advocate for children's rights and autism acceptance, reflecting her dedication to making a positive impact in the world. She is also a member of Delta Sigma Theta Sorority, Inc. she continues to champion causes that align with her values.#InnovationExpert #DesignThinking #StartupMentor #BusinessGrowth #ResearchandDevelopment

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If you like Leantime and want to support us you can start by giving us a Star on Github or through a sponsorship.

Market Segmentation Template

What is market segmentation?

Why market segmentation is important, types of market segmentation strategies.

• Product or service benefit(s) targeted
• Availability to buy or acquire
• Segmentation based on use
• Common features
• Hobbies, pastimes, or passions
• Opinions or values
• Personality or mindset
• Social standing
• Relationship status
• Status of political party Race Religion
• Religion or beliefs
• Living on Rent or Homeowner
• Population density by city, region, and country
• Economic situation Postal Codes Climate in the region

Geographic segmentation, on the other hand, might encompass non-technically defined geographic areas such as neighbourhoods.

• Annual income and performance
• The typical sales cycle
• Ownership, size, and employee population
• Trends in the workplace

When to use a market segmentation template?

Tips for market segmentation template.

• The first and most important stage is to determine your target audience. Advertisers must be very specific about who should be used in a single category. Ascertain that the participants have something similar.
• It is critical to determine the demands of the target audience once the target market has been determined. Individuals' expectations must be met by the product. To learn more about the target audience's interests and wants, the marketer must communicate with them.
• Your firm will be better off financially term if you are targeting the proper demographic and double-checking to make sure it hasn't changed.
• You want to be certain that your effort and cost are invested in the platforms that will have the most influence on your target demographic. Fortunately for us, picking the correct channels isn't difficult.
• With good reason, segmentation is a marketer's most trusted ally. Whether you're targeting a broad audience or a specific market, be sure your segments are the right size for your business and its present and future objectives.
• When planning a new, current, or planned marketing strategy, your team should employ a market segmentation template.
• The pattern of representation that influences how people perceive your firm is known as brand consistency.

Market segmentation templates

Related Templates