Customer Segments

Customer Segments are the categorisations of potential customers based on shared characteristics, which could include demographics, geographies, behaviours, and market levels.

Purpose

The purpose of identifying customer segments is to understand the diverse needs, preferences, and behaviours of different groups of customers. This understanding allows product teams to tailor their offerings, marketing strategies, and customer experiences to meet the unique requirements of each segment.

Format

Customer Segments documentation typically includes:

• Segment Name: A segment name or identifier.
• Key Characteristics: Defining the segment (e.g., age range, geographic location, purchasing power).
• Size and Growth: Of the segment.
• Specific Needs: Or pain points the segment experiences.
• Preferred Channels: Of communication and product discovery.
• Value Proposition: Tailored to the segment's needs.

Anti-patterns

• Over-segmentation: Creating too many segments with minor differences, leading to confusion and dilution of effort.
• Stereotyping: Relying on assumptions or stereotypes for segment characteristics, risking alienation of potential customers.
• Neglecting Small Segments: Ignoring smaller segments that could potentially offer significant niche opportunities.