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

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)
[Action for Segment 1]
[Action for Segment 2]
Near-term (6-12 months)
[Action for Segment 1]
[Action for Segment 3]
Long-term (12+ months)
[New segment development]
[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.