Market Segmentation

What is Market Segmentation? Let's skip the jargon filled Wikipedia definition here. Simply put, market segmentation is one of the most powerful marketing tools in your arsenal. Using a variety of statistical techniques such as multivariate and regression analysis that we can apply to a simple enjoyable survey we conduct of your customers and potential customers. market segmentation

Why is this so powerful? What will segmentation do for me? The biggest challenge in marketing is targeted reach. Pinpointing and reaching the target prospect with exactly the message they need, when they need it. The second biggest challenge is making that message effective. Segment tailored messaging will enable you to do that but can only be done if you already have a segment map..

Our segmentation tools and maps are powerful additions to our clients' competitive marketing war chests. 

Market segmentation also reduces the risk of an unsuccessful or ineffective marketing campaign. When marketers divide a target market based on key characteristics and personalize their strategies based on that information, there is a much higher chance of success than if they were to create a generic campaign and try to implement it across all market segments.

What is Customer Segmentation?  Customer segmentation is the clustering of customers used to organize resources, strategy, marketing and communication in a way that maximizes outcomes based on main or key ‘strands’ of customer expectation, demographics, value, needs, wants and/or desires.

On the other hand, with Market Segmentation there could be an industry, cluster of businesses or a subset of customers within a customer segment which has been identified as an opportunity for growth or customer acquisition. Businesses should use their strengths, potential and business opportunity (at a high level) to get clarity on what they do (aka what is their main business). They then segment their customer base before identifying target markets.

Customer Segmentation achieves the following:

  • Informs organizational structure to maximize service delivery and product outputcustomer segmentation
  • Maximizes awareness on how to serve customers based on global needs and expectations
  • Creates specific customer journeys informing which touchpoints should go where
  • Develops understanding on who our customers are, why they do business with us, and how to keep them satisfied and delighted
  • Informs what experiences do deliver that maximize revenue, reinforce brand experience and deliver positive moments of truth
  • Enables the organization to understand for whom they are creating value


For more information on how we can help create a segmentation map for your company, contact us for a complementary, no obligation consultation at insights@siliconvalleyrg.com