customer-segmentation

# Customer Segmentation ## 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 | Type | Variables | When to Use | |------|-----------|-------------| | **Demographic** | Age, income, gender, education | B2C, consumer goods | | **Firmographic** | Industry, size, location | B2B, business services | | **Behavioral** | Usage, loyalty, purchase patterns | Product strategy | | **Needs-based** | Benefits sought, pain points | Value proposition design | | **Psychographic** | Values, lifestyle, attitudes | Brand strategy | | **Value-based** | Revenue, profitability, LTV | Resource allocation | ### 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)** 1. [Action for Segment 1] 2. [Action for Segment 2] **Near-term (6-12 months)** 1. [Action for Segment 1] 2. [Action for Segment 3] **Long-term (12+ months)** 1. [New segment development] 2. [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.