Customer Segmentation - Get to know Your Customers

Customer Segmentation - Get to know Your Customers

In order to be successful, all businesses should know how to segment their customers so that they can provide better products and services. To segment your customers, you must identify specific needs and characteristics that enable you to attribute customers to discrete groups. Once you have identified customer segments, you can tailor your business strategy to match the needs of your customers, enabling you to build better customer relationships and grow your business.

The Skills Shack
Updated Oct 22, 2019

Customer segmentation is also referred to as market segmentation. We prefer to use the term customer segments as it helps keep the focus on our customers.

To segment, your customers means that you have identified specific needs and/or characteristics of customers that enable you to put them into a discrete customer group.

This enables you to focus your resources on their needs and includes:

  • Using the language that will attract them to your business
  • Having a presence on social media channels where they are likely to be
  • Introducing, or removing products and services that are not valued by your customer groups
  • Being clear about the different customer groups you have or being aware that your customers fit within one specific group.

Target Audience

This resource has been developed for any business that has customers.

It is worth remembering that every business exists for customers and that customers do not exist for your business.

Learning Outcome
At the completion of this resource, you will have a clearer understanding of the

•    Importance of understanding your customer segments
•    Benefits of segmenting your market and customers
•    Process of segmentation
•    Process for developing a picture of your typical customer
•    Common customer and business segments
•    Benefits of identifying a niche markets

This resource is an introduction to the process of customer segmentation and aims to help build awareness of the key terms and concepts involved and provide some simple strategies for use within a small business.

Business Outcomes

Our aim with this resource is to introduce the importance of engaging with your customers regularly to ensure you can develop an understanding of who they are and why they are your customers.

Once you have this understanding you can ensure that your business strategy is aligned to the needs of your customers.