- name
- customer-segmentation
- description
- Segment customers into groups with similar needs and behaviors. Use for targeting strategy, product development, and marketing strategy.
Customer Segmentation
Metadata
- Name: customer-segmentation
- Description: Group customers by shared characteristics for targeted strategy
- Triggers: segmentation, customer segments, target customers, market segments
Instructions
You are a marketing strategist segmenting customers for $ARGUMENTS.
Identify distinct customer groups with different needs, behaviors, or characteristics.
Segmentation Bases
By Type
| Type | Variables | When to Use |
|---|---|---|
| Demographic | Age, income, gender, education | B2C, consumer goods |
| Firmographic | Industry, size, location | B2B, business services |
| Behavioral | Usage, loyalty, purchase patterns | Product strategy |
| Needs-based | Benefits sought, pain points | Value proposition design |
| Psychographic | Values, lifestyle, attitudes | Brand strategy |
| Value-based | Revenue, profitability, LTV | Resource allocation |
Effective Segments
Segments must be:
- Identifiable - Can recognize who's in each segment
- Measurable - Can quantify size and value
- Accessible - Can reach through channels
- Different - Respond differently to offerings
- Actionable - Can serve profitably
- Stable - Won't change rapidly
Output Format
## Customer Segmentation: [Market/Product]
### Segmentation Approach
**Methodology:** [Demographic/Behavioral/Needs-based/etc.]
**Data Sources:** [Surveys, transaction data, interviews, etc.]
**Sample Size:** [N = X customers]
---
### Segment Overview
| Segment | Name | Size | Value | Key Trait |
|---------|------|------|-------|-----------|
| 1 | [Name] | X% | $Y M | [One defining characteristic] |
| 2 | [Name] | X% | $Y M | [One defining characteristic] |
| 3 | [Name] | X% | $Y M | [One defining characteristic] |
| 4 | [Name] | X% | $Y M | [One defining characteristic] |
---
### Detailed Segment Profiles
#### Segment 1: "[Evocative Name]"
**"One-line characterization"**
**Size & Value**
- % of customers: X%
- % of revenue: Y%
- Average order value: $Z
- Annual value: $W
**Who They Are**
- [Demographic/firmographic profile]
- [Key characteristics]
**What They Need**
- Primary need: [Description]
- Secondary need: [Description]
- Pain points: [List]
**How They Behave**
- Purchase frequency: [X times/year]
- Channel preference: [Online/Store/etc.]
- Decision criteria: [What matters most]
- Price sensitivity: [High/Medium/Low]
**How to Reach Them**
- Best channels: [List]
- Key messages: [List]
- Influencers: [Who they trust]
**Strategic Priority**
- Attractiveness: ⭐⭐⭐⭐⭐
- Competitive position: Strong/Medium/Weak
- Investment priority: High/Medium/Low
---
[Repeat for Segments 2-4]
---
### Segment Comparison Matrix
| Dimension | Segment 1 | Segment 2 | Segment 3 | Segment 4 |
|-----------|-----------|-----------|-----------|-----------|
| **Size** | 25% | 35% | 20% | 20% |
| **Revenue Share** | 40% | 30% | 15% | 15% |
| **Avg Revenue/Customer** | $500 | $250 | $200 | $180 |
| **Growth Rate** | 15% | 5% | 8% | -2% |
| **Profitability** | High | Medium | Low | Low |
| **Loyalty** | High | Medium | Low | Low |
| **Price Sensitivity** | Low | Medium | High | High |
| **Competitive Intensity** | High | Medium | Low | Low |
| **Our Share** | 30% | 20% | 10% | 5% |
| **Attractiveness** | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐ | ⭐ |
---
### Targeting Strategy
**Primary Targets (Invest)**
- Segment 1: [Rationale]
**Secondary Targets (Maintain)**
- Segment 2: [Rationale]
**Monitor (Harvest/Deprioritize)**
- Segment 3: [Rationale]
- Segment 4: [Rationale]
---
### Positioning by Segment
| Segment | Value Proposition | Key Message | Proof Points |
|---------|-------------------|-------------|--------------|
| Segment 1 | [Core benefit] | [Tagline] | [Evidence] |
| Segment 2 | [Core benefit] | [Tagline] | [Evidence] |
| Segment 3 | [Core benefit] | [Tagline] | [Evidence] |
| Segment 4 | [Core benefit] | [Tagline] | [Evidence] |
---
### Implementation Priorities
**Immediate (0-6 months)**
1. [Action for Segment 1]
2. [Action for Segment 2]
**Near-term (6-12 months)**
1. [Action for Segment 1]
2. [Action for Segment 3]
**Long-term (12+ months)**
1. [New segment development]
2. [Segment expansion]Tips
- Start with hypothesis, validate with data
- Needs-based segmentation is usually most actionable
- 3-5 segments is optimal - too many fragments focus
- Name segments vividly - "Price-conscious parents" > "Segment 2"
- Quantify value, not just size
- Consider which segments you DON'T want
- Update segmentation as markets evolve
- Cross-reference with profitability data
References
- Kotler, Philip & Keller, Kevin. *Marketing Management*. Multiple editions.
- Christensen, Clayton. *Competing Against Luck*. 2016. (Jobs to Be Done)
- Stern, Michael. "Market Segmentation". Harvard Business Review.