Customer Segments are groups of customers that your product or service will serve. This grouping can be based on common needs, common behaviors, or other attributes. By defining and understanding each Customer Segment you can make conscious decisions about which segments you will serve and which you will ignore. With clearly defined Customer Segments in place, the rest of the business model can be designed around a strong understanding of specific customer needs.
These criteria will help you identify different Customer Segments:
- Their needs require and justify a distinct offer
- They are reached through different Distribution Channels
- They require different types of relationships
- They have significantly different profit margins
- They will pay for different features or services