market segmentation customer segmentation customer-centritic data driven decisions growth Customers usually have multiple choices in products or services to meet their needs. There are competitors. Fickle customers present a challenge for brands that want to connect with them and engender their loyalty and advocacy. Winning them over requires targeted and valuable communication, which can only be achieved by understanding the market category dynamics, and customer wants and needs. This takes effective segmentation. Why is well-researched, criteria-based, segmentation identification (groups that share a similar level of interest in the same or comparable set of needs) and sizing so crucial? It:

  1. Improves targeting, increases revenue, accelerates growth and provides a competitive edge in existing, as well as, new markets.
  2. Provides important input for persona development and Customer Journey Mapping, to improve customer experience and demand generation efforts.
  3. Enables you to precisely tailor and engage prospective and existing customers to your solution and distinct value proposition, its channels, pricing model, touchpoints, and communication.

A survey by Rob Markey and team (Harvard Business Review) showed that 81 percent of executives believed that market segmentation was crucial for growing profits. The study found that firms that maximize their products and service to desirable customer segments can actually gain profit of about 15 percent annually. On the contrary, businesses that fail to connect to their right customer segments might suffer from lower profit growth, 5 percent approximately.

Why companies engage us. Segmentation facilitates targeting. Deciding which customer and market segments offer the best opportunity and accessibility you must first “get a lay of the land.” This is a critical first step otherwise you’re left with a shotgun approach to the market. Our customers engage us because they need accurate data to confidently identify the segments with the greatest opportunity and accessibility. They want the answers to these types of questions:

  • Which market segments have unmet needs we could meet?
  • Which customer segments offer the highest revenue and profit potential?
  • Which segments would give us the highest ROI for our investment?
  • How should we position our products or services in order to reach target segments?
  • How can we communicate with target segments?
  • Which segments are most likely to adopt our new products?
  • What profitable customer segments exist in our customer base and how do we retain these customers?
  • Who are the players in the segment including the competitive landscape and other members within the ecosystem?

What we deliver. Our proprietary methodology enables us to build a data model using opportunity and accessibility criteria to identify and evaluate segments on an apples-to-apples basis, so you can make the best data-driven decision. Once the model is created we do the leg work to validate the model. We complete the necessary secondary research needed to decide which market and customer segments best meet the criteria and the insights to confidently select and prioritize the best the market and customer segments to pursue.  The data model is provided to our customers for their ongoing use.  

“Within six weeks of starting the project, two promising markets were identified that would greatly expand TengoInternet’s presence in Texas. Within 10 months of the project’s conclusion, Tengo had closed 40 new accounts in one of the segments, an 800% increase in the number of wireless hot spots in our network.” Eric Stumberg, President/Owner–Tengo Internet

Market Segmentation

Create a segmentation model to improve your targeting and pick winning markets.


Identify, Size, and Prioritize New Segments to Grow Profitability

Our segmentation resources and capabilities range from our Prime the Pump Interactive workshop: Market & Customer Segmentation, to MarketSmart Segmentation™, a component of our SmartStart Services Suite™, to comprehensive collaborative engagement to create your model, gather the data to validate it. Start your data-driven approach to segmentation with one of these 3 options.      

market customer segmentation workshop

This workshop is designed to help you establish criteria for ideal product-related segments and identify segments that would best meet these criteria. The following ground is covered: product category, pain points, market segmentation, criteria, ranking and weighting, and segment selection. As a result of our Market & Customer Segmentation workshop, you will have the key ingredients for a market and customer segmentation model.

Customer and Market Segmentation

MarketSmart Segmentation™ identifies and ranks potential segments and segment clusters that are most likely to realize your revenue and growth targets. Our approach evaluates segments against criteria for two primary dimensions: accessibility and opportunity. The framework developed and refined for MarketSmart Segmentation is the foundation for the Avantage Tools Suite®.

Use our collaborative consulting to build your internal expertise.

Let’s put our heads together to identify, size and prioritize profitable customer and market segments, improve ROI on marketing investments and improve the customer experience, by delivering more targeted and valuable messaging. The combination of our data derived decision support, knowledge and skill transfer, and change management, will help you achieve your objectives. We offer a robust, customized consulting engagement designed to address your unique needs.

Yes, Let’s Talk


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