Customer segmentation strategy – A beginner’s guide

Segmentation works by understanding the differences and common interests of the audiences.

In simple terms, customer segmentation is the process of grouping your target audience into defined groups based on different criteria.

The idea is to group prospects with similar needs, and then offer each group a personalized experience. Segmentation facilitates businesses to find valuable client types and market to them effectively with personalized and relevant content.

Now let us see how it is done.


How to segment your prospects?

It all begins with data.

For segmenting the prospects, businesses need many data points or information about its prospects. These data points could be their demography, size of their organization, etc.

Therefore, customers or potential audience are segmented based on their geography, behavioral characteristics, demographics, psychographics, etc.

If you are thinking that it is just that, then you are wrong!

Besides this, there are many more criteria to segment the prospects; for example, you can use traits specific to your business such as customer’s lifetime value.

Let us look at some of the types of customer segmentation.


Pro tip:

Build email list with email finder tools

There are advanced email finder tools like that locate the correct email address format of a person.

With this tool, you can be able to find the email address of your prospects within a few seconds. It functions based on artificial intelligence technology.

I hope that was helpful. Let us now get back to diverse ways to segment the customers.


Concentrated strategy

With this approach, businesses define one or several customer segments.

The idea is to focus on a niche or narrow customer segment. This approach works well in the following situations:

  • Your brand’s product or service is designed for a small group of customers.
  • You are a small business with scanty resources, so you need to focus on the types of customers that will maximize your sales or profits.

You are launching a new product or service, so you want to focus on prospects who are most likely to try the new product, such as early adopters of innovative technology.



Some companies may possess the idea of building many customer bases. And with a huge customer base, there is a need for many segments of audiences for such companies.

For example, if a company is selling a lot of assorted products, they need different marketing strategies to persuade distinct kinds of people; hence with proper segmentation, it becomes easy to incorporate a personalized marketing approach.

All your customers are likely to exist in many dimensions. For instance, some of your customers may have a shared behaviour while living in various locations.

You need to create segments based on all the criteria to curate highly personalized content and target the customers from different perspectives.


Why is segmentation important?

With segmentation, you will get clarity of who to target; hence, you can focus on persuading the ones that could help you achieve your business goals.

When you are running an email marketing campaign, customer segmentation is so important. You can send highly customized emails to each audience segment.

Those were just a few instances where audience segmentation plays a crucial role.


Concluding thoughts

I hope you find the strategies shared in this article helpful. Remember, customer segmentation is not a task that you do for one and leave it; with customers getting added or new behaviour, it keeps evolving.


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