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The ultimate guide to customer segmentation

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selectAllThisElementChildrenWrapperSub.length; c++) { selectAllThisElementChildrenWrapperSub[c].classList.remove('modular-navigation-item-sub-wrapper-active'); selectAllThisElementChildrenWrapperSub[c].style.display = 'none'; } }, 310); return; } const selectAllThisElementChildrenWrapper = document.querySelectorAll('.modular-navigation-item-wrapper'); for (let i = 0; i < selectAllThisElementChildrenWrapper.length; i++) { if (selectAllThisElementChildrenWrapper[i].classList.contains('modular-navigation-item-wrapper-active')) { selectAllThisElementChildrenWrapper[i].classList.remove('modular-navigation-item-wrapper-active'); setTimeout(() => { selectAllThisElementChildrenWrapper[i].style.display = 'none'; for (let c = 0; c < selectAllThisElementChildrenWrapperSub.length; c++) { selectAllThisElementChildrenWrapperSub[c].classList.remove('modular-navigation-item-sub-wrapper-active'); selectAllThisElementChildrenWrapperSub[c].style.display = 'none'; } }, 310); } } setTimeout(() => { thisElementChildrenWrapper.style.display = 'flex'; setTimeout(() => { thisElementChildrenWrapper.classList.add('modular-navigation-item-wrapper-active'); }, 1); }, 10); } function modularNavHandleOnClikSub(event) { const thisElement = event.target; const thisElementParent = thisElement.classList.contains('modular-navigation-item') ? thisElement : thisElement.parentNode; const thisElementChildrenWrapper = thisElementParent.querySelector('.modular-navigation-item-sub-wrapper'); if (thisElementChildrenWrapper) { if (thisElementChildrenWrapper.classList.contains('modular-navigation-item-sub-wrapper-active')) { thisElementChildrenWrapper.classList.remove('modular-navigation-item-sub-wrapper-active'); setTimeout(() => { thisElementChildrenWrapper.style.display = 'none'; }, 310); return; } const selectAllThisElementChildrenWrapper = document.querySelectorAll('.modular-navigation-item-sub-wrapper'); for (let i = 0; i < selectAllThisElementChildrenWrapper.length; i++) { if (selectAllThisElementChildrenWrapper[i].classList.contains('modular-navigation-item-sub-wrapper-active')) { selectAllThisElementChildrenWrapper[i].classList.remove('modular-navigation-item-sub-wrapper-active'); setTimeout(() => { selectAllThisElementChildrenWrapper[i].style.display = 'none'; }, 310); } } setTimeout(() => { thisElementChildrenWrapper.style.display = 'flex'; setTimeout(() => { thisElementChildrenWrapper.classList.add('modular-navigation-item-sub-wrapper-active'); }, 1); }, 10); } const selectAllThisElementChildrenWrapper = document.querySelectorAll('.modular-navigation-item-sub-third-wrapper'); for (let i = 0; i < selectAllThisElementChildrenWrapper.length; i++) { if (selectAllThisElementChildrenWrapper[i].classList.contains('modular-navigation-item-sub-third-wrapper-active')) { selectAllThisElementChildrenWrapper[i].classList.remove('modular-navigation-item-sub-third-wrapper-active'); setTimeout(() => { selectAllThisElementChildrenWrapper[i].style.display = 'none'; }, 310); } } } function modularNavHandleOnClikSubThird(event) { const thisElement = event.target; const thisElementParent = thisElement.classList.contains('modular-navigation-item') ? thisElement : thisElement.parentNode; const thisElementChildrenWrapper = thisElementParent.querySelector('.modular-navigation-item-sub-third-wrapper'); if (thisElementChildrenWrapper) { if (thisElementChildrenWrapper.classList.contains('modular-navigation-item-sub-third-wrapper-active')) { thisElementChildrenWrapper.classList.remove('modular-navigation-item-sub-third-wrapper-active'); setTimeout(() => { thisElementChildrenWrapper.style.display = 'none'; }, 310); return; } const selectAllThisElementChildrenWrapper = document.querySelectorAll('.modular-navigation-item-sub-third-wrapper'); for (let i = 0; i < selectAllThisElementChildrenWrapper.length; i++) { if (selectAllThisElementChildrenWrapper[i].classList.contains('modular-navigation-item-sub-third-wrapper-active')) { selectAllThisElementChildrenWrapper[i].classList.remove('modular-navigation-item-sub-third-wrapper-active'); setTimeout(() => { selectAllThisElementChildrenWrapper[i].style.display = 'none'; }, 310); } } setTimeout(() => { thisElementChildrenWrapper.style.display = 'flex'; setTimeout(() => { thisElementChildrenWrapper.classList.add('modular-navigation-item-sub-third-wrapper-active'); }, 1); }, 10); } } for (let i = 0; i < topNav.length; i++) { const thisModNav = topNav[i]; const thisModNavWrapper= document.createElement('div'); thisModNavWrapper.classList.add('modular-navigation-wrapper'); if (thisModNav.itemList) { const thisModNavMain = document.createElement('div'); thisModNavMain.classList.add('modular-navigation-main'); thisModNavMain.classList.add('modular-navigation-main-width-list'); if (thisModNav.class) thisModNavMain.classList.add(thisModNav.class); thisModNavMain.textContent = thisModNav.name ? thisModNav.name : ''; thisModNavWrapper.appendChild(thisModNavMain); thisModNavMain.addEventListener('mouseenter', modularNavHandleOnClik); const thisModItemWrapper = document.createElement('div'); thisModItemWrapper.classList.add('modular-navigation-item-wrapper'); for (var b = 0; b < thisModNav.itemList.length; b++) { const thisModItem = thisModNav.itemList[b]; if (thisModItem.itemList) { } if (!thisModItem.url && !thisModItem.itemList) continue; const thisModNavItem = thisModItem.itemList ? document.createElement('div') : document.createElement('a'); thisModNavItem.classList.add('modular-navigation-item'); thisModNavItem.classList.add('modular-navigation-item-list-wrapper'); if (thisModItem.class) thisModNavItem.classList.add(thisModItem.class); if (thisModItem.url) thisModNavItem.setAttribute('href', thisModItem.url); if (thisModItem.target) thisModNavItem.setAttribute('target', thisModItem.target); const thisModNavHtext = document.createElement('h5'); thisModNavHtext.textContent = thisModItem.name ? thisModItem.name : ''; thisModNavItem.appendChild(thisModNavHtext); if (thisModItem.desc) { const thisModNavPtext = document.createElement('p'); thisModNavPtext.textContent = thisModItem.desc; thisModNavItem.appendChild(thisModNavPtext); } if (thisModItem.itemList) { const thisModNavItemSubWrapper = document.createElement('div'); thisModNavItemSubWrapper.classList.add('modular-navigation-item-sub-wrapper'); for (let d = 0; d < thisModItem.itemList.length; d++) { const thisModItemSub = thisModItem.itemList[d]; const thisModNavItemSub = thisModItemSub.itemList ? document.createElement('div') : document.createElement('a'); thisModNavItemSub.classList.add('modular-navigation-item-third'); thisModNavItemSub.classList.add('modular-navigation-item'); if (thisModItemSub.class) thisModNavItemSub.classList.add(thisModItemSub.class); if (thisModItemSub.url) thisModNavItemSub.setAttribute('href', thisModItemSub.url); if (thisModItemSub.target) thisModNavItemSub.setAttribute('target', thisModItemSub.target); const thisModNavHtext = document.createElement('h6'); thisModNavHtext.textContent = thisModItemSub.name ? thisModItemSub.name : ''; thisModNavItemSub.appendChild(thisModNavHtext); if (thisModItemSub.desc) { const thisModNavPtext = document.createElement('p'); thisModNavPtext.textContent = thisModItemSub.desc; thisModNavItemSub.appendChild(thisModNavPtext); } thisModNavItemSubWrapper.appendChild(thisModNavItemSub); } thisModNavItem.appendChild(thisModNavItemSubWrapper); } thisModItemWrapper.appendChild(thisModNavItem); } thisModNavWrapper.appendChild(thisModItemWrapper); } else { const thisModNavMain = document.createElement('a'); thisModNavMain.classList.add('modular-navigation-main'); if (thisModNav.class) thisModNavMain.classList.add(thisModNav.class); thisModNavMain.setAttribute('href', thisModNav.url); if (thisModNav.target) thisModNavMain.setAttribute('target', thisModNav.target); thisModNavMain.textContent = thisModNav.name ? thisModNav.name : ''; thisModNavWrapper.appendChild(thisModNavMain); } getModularNavigation.appendChild(thisModNavWrapper); } const getModularNavMobile = document.querySelector('.nav-mobile-modular'); const thisModNavClose = document.createElement('div'); thisModNavClose.classList.add('modular-navigation-close'); thisModNavClose.innerHTML = '<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 448 512"><path d="M16 132h416c8.837 0 16-7.163 16-16V76c0-8.837-7.163-16-16-16H16C7.163 60 0 67.163 0 76v40c0 8.837 7.163 16 16 16zm0 160h416c8.837 0 16-7.163 16-16v-40c0-8.837-7.163-16-16-16H16c-8.837 0-16 7.163-16 16v40c0 8.837 7.163 16 16 16zm0 160h416c8.837 0 16-7.163 16-16v-40c0-8.837-7.163-16-16-16H16c-8.837 0-16 7.163-16 16v40c0 8.837 7.163 16 16 16z"/></svg>'; getModularNavigation.appendChild(thisModNavClose); thisModNavClose.addEventListener('click', function() { getModularNavigation.classList.remove('modular-navigation-visible'); }); getModularNavMobile.addEventListener('click', function() { getModularNavigation.classList.add('modular-navigation-visible'); }); } if (document.querySelector('.nav-jobs a')) document.querySelector('.nav-jobs a').setAttribute('target', '_blank'); if (document.querySelector('.nav-pmm-q-a a')) document.querySelector('.nav-pmm-q-a a').setAttribute('target', '_blank'); </script> </div> <div class="search-results"> <div class="search-results-close"> x close </div> <div id="search-field-wrapper"> <form> <input id="search-field" class="st-default-search-input" placeholder="Start typing..." data-ghost-search/> </form> </div> <div id="results" class="st-search-container">Nothing to display...</div> <div class="search-tags"> <div class="search-tags-view">or view by:</div> <a href="/tag/community-based-marketing">Community-Based Marketing</a> <a href="/tag/community-led-growth">Community-Led Growth</a> <a href="/tag/community-management">Community Management</a> <a href="/tag/community-operations">Community Operations</a> </div> </div> <div class="social-links social-links-fixed"> <a href="https://www.linkedin.com/company/community-led-alliance/" target="_blank"><?xml version="1.0" encoding="utf-8"?> <!-- Generator: Adobe Illustrator 22.0.1, SVG Export Plug-In . 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SVG Version: 6.00 Build 0) --> <svg version="1.1" id="Capa_1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 10.385 20" style="enable-background:new 0 0 10.385 20;" xml:space="preserve"> <g> <path id="f_1_" d="M6.742,20v-9.122h3.061l0.459-3.556h-3.52v-2.27c0-1.029,0.285-1.731,1.762-1.731 l1.882-0.001V0.139C10.06,0.097,8.943,0,7.643,0C4.928,0,3.07,1.657,3.07,4.699v2.622H0v3.556h3.07V20H6.742z"/> </g> </svg> </a> <a href="https://www.instagram.com/communityledalliance/" target="_blank"><?xml version="1.0" encoding="utf-8"?> <!-- Generator: Adobe Illustrator 24.1.2, SVG Export Plug-In . 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d="M256,126.64c-71.45,0-129.36,57.92-129.36,129.36S184.55,385.36,256,385.36S385.36,327.45,385.36,256 S327.45,126.64,256,126.64z M256,339.97c-46.38,0-83.97-37.6-83.97-83.97s37.6-83.97,83.97-83.97c46.38,0,83.97,37.6,83.97,83.97 S302.38,339.97,256,339.97z"/> <circle cx="390.48" cy="121.52" r="30.23"/> </g> </svg> </a> <a href="https://www.tiktok.com/@communityledalliance " target="_blank"><svg xmlns="http://www.w3.org/2000/svg" width="16" height="16" fill="currentColor" class="bi bi-tiktok" viewBox="0 0 16 16"> <path d="M9 0h1.98c.144.715.54 1.617 1.235 2.512C12.895 3.389 13.797 4 15 4v2c-1.753 0-3.07-.814-4-1.829V11a5 5 0 1 1-5-5v2a3 3 0 1 0 3 3z"/> </svg></a> <a href="/join-the-community-led-alliance-community/" target="_blank"><svg fill="#fff" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 80" width="20px" height="160px"><path d="M 27 7 C 26.449 7 26 7.449 26 8 C 26 8.551 26.449 9 27 9 C 27.551 9 28 8.551 28 8 C 28 7.449 27.551 7 27 7 z M 40 7 C 35.592874 7 32 10.592874 32 15 C 32 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32.846612 57 40 57 z M 8 58 C 7.449 58 7 58.449 7 59 C 7 59.551 7.449 60 8 60 C 8.551 60 9 59.551 9 59 C 9 58.449 8.551 58 8 58 z M 12 58 C 11.449 58 11 58.449 11 59 C 11 59.551 11.449 60 12 60 C 12.551 60 13 59.551 13 59 C 13 58.449 12.551 58 12 58 z M 16 58 C 15.449 58 15 58.449 15 59 C 15 59.551 15.449 60 16 60 C 16.551 60 17 59.551 17 59 C 17 58.449 16.551 58 16 58 z M 20 58 C 19.449 58 19 58.449 19 59 C 19 59.551 19.449 60 20 60 C 20.551 60 21 59.551 21 59 C 21 58.449 20.551 58 20 58 z M 24 58 C 23.449 58 23 58.449 23 59 C 23 59.551 23.449 60 24 60 C 24.551 60 25 59.551 25 59 C 25 58.449 24.551 58 24 58 z M 28 58 C 27.449 58 27 58.449 27 59 C 27 59.551 27.449 60 28 60 C 28.551 60 29 59.551 29 59 C 29 58.449 28.551 58 28 58 z M 52 58 C 51.449 58 51 58.449 51 59 C 51 59.551 51.449 60 52 60 C 52.551 60 53 59.551 53 59 C 53 58.449 52.551 58 52 58 z M 56 58 C 55.449 58 55 58.449 55 59 C 55 59.551 55.449 60 56 60 C 56.551 60 57 59.551 57 59 C 57 58.449 56.551 58 56 58 z M 60 58 C 59.449 58 59 58.449 59 59 C 59 59.551 59.449 60 60 60 C 60.551 60 61 59.551 61 59 C 61 58.449 60.551 58 60 58 z M 64 58 C 63.449 58 63 58.449 63 59 C 63 59.551 63.449 60 64 60 C 64.551 60 65 59.551 65 59 C 65 58.449 64.551 58 64 58 z M 68 58 C 67.449 58 67 58.449 67 59 C 67 59.551 67.449 60 68 60 C 68.551 60 69 59.551 69 59 C 69 58.449 68.551 58 68 58 z M 72 58 C 71.449 58 71 58.449 71 59 C 71 59.551 71.449 60 72 60 C 72.551 60 73 59.551 73 59 C 73 58.449 72.551 58 72 58 z M 30 68 C 29.449 68 29 68.449 29 69 C 29 69.551 29.449 70 30 70 C 30.551 70 31 69.551 31 69 C 31 68.449 30.551 68 30 68 z M 34 68 C 33.449 68 33 68.449 33 69 C 33 69.551 33.449 70 34 70 C 34.551 70 35 69.551 35 69 C 35 68.449 34.551 68 34 68 z M 38 68 C 37.449 68 37 68.449 37 69 C 37 69.551 37.449 70 38 70 C 38.551 70 39 69.551 39 69 C 39 68.449 38.551 68 38 68 z M 42 68 C 41.449 68 41 68.449 41 69 C 41 69.551 41.449 70 42 70 C 42.551 70 43 69.551 43 69 C 43 68.449 42.551 68 42 68 z M 46 68 C 45.449 68 45 68.449 45 69 C 45 69.551 45.449 70 46 70 C 46.551 70 47 69.551 47 69 C 47 68.449 46.551 68 46 68 z M 50 68 C 49.449 68 49 68.449 49 69 C 49 69.551 49.449 70 50 70 C 50.551 70 51 69.551 51 69 C 51 68.449 50.551 68 50 68 z"/></svg> </a> </div> <main id="site-main" class="site-main outer site-main-post has-post-image"> <div class="feature-post-wrapper"> <article class="post-full post tag-community-operations "> <section class="post-full-content Community Operations"> <header class="post-full-header"> <div class="post-full-header-wrapper"> <section class="post-full-meta"> <time class="post-full-meta-date" datetime=" 2023-03-31">31 March 2023</time> <span class="reading-time">5 min read</span> </section> <h1 class="post-full-title">The ultimate guide to customer segmentation</h1> <section class="post-full-meta"> <a href="/tag/community-operations/">Community Operations</a> </section> <div class="post-author-with-linkedin-wrapper"> <div class="post-author-wrapper"> <section class="post-full-authors"> <section class="author-card"> <a href="/author/eve/"> <img class="author-profile-image" src="/content/images/size/w300/2023/03/Screen-Shot-2023-03-16-at-17.06.24.png" alt="Eve Chatfield" /> <section class="author-card-content"> <h4 class="author-card-name">Eve Chatfield</h4> <div class="post-full-footer-right"> <div class="author-card-button">Read More</div> </div> </section> </a> </section> </section> </div> </div> </div> <div class="post-full-image" style="background-image: url(/content/images/2023/03/kaitlyn-chow-9mXSfVYPmlM-unsplash-1.jpg);"> </div> </header> <div class="post-content"> <aside class="toc-container"> </aside> <p>Humans have always loved categorizing things: people, animals, and just about anything you can think of. Customers are no exception.</p><p>Customer segmentation is a useful tactic to better align tools and strategies with your target customers.</p><p>In this article we’ll talk about:</p><ul><li><a href="https://www.communityledgrowth.com/the-ultimate-guide-to-customer-segmentation/#what-is-customer-segmentation">What customer segmentation is,</a></li><li><a href="https://www.communityledgrowth.com/the-ultimate-guide-to-customer-segmentation/#why-use-customer-segmentation">Why you should use it,</a></li><li><a href="https://www.communityledgrowth.com/the-ultimate-guide-to-customer-segmentation/#customer-vs-market-segmentation">Customer vs market segmentation,</a></li><li><a href="https://www.communityledgrowth.com/the-ultimate-guide-to-customer-segmentation/#types-of-customer-segmentation">Types of customer segmentation,</a> and</li><li><a href="https://www.communityledgrowth.com/the-ultimate-guide-to-customer-segmentation/#how-to-segment-your-customers">How to segment your customers.</a></li></ul><h2 id="what-is-customer-segmentation"><strong><strong><strong>What is customer segmentation?</strong></strong></strong></h2><p>Customer segmentation is a practice that divides up your customers based on certain characteristics or demographics like geography, age, interests, and spending habits.</p><p>Because each customer’s unique in the way they experience the <a href="https://www.salesenablementcollective.com/customer-journey-mapping-making-sales-buyer-centric/?ref=communityledgrowth.com">customer journey</a> with your product, not one single approach is going to work for all. Customer segmentation aims to better categorize your customers so that their needs can be fulfilled during this journey.</p><h2 id="why-use-customer-segmentation"><strong><strong><strong>Why use customer segmentation?</strong></strong></strong></h2><p>Customer segmentation’s a popular practice because it helps to market and sell your products or services more efficiently. Once you understand <a href="https://www.productmarketingalliance.com/customer-needs-and-how-to-meet-them/?ref=communityledgrowth.com">customer needs</a> and desires, you can better prioritize how best to market to them.</p><p>Segmenting customers can also improve <a href="https://www.customermarketingalliance.com/how-to-increase-customer-retention-rate-and-boost-customer-loyalty/?ref=communityledgrowth.com">customer loyalty and retention rates</a>, because they respond to content focused toward them. The priority of segmentation is to have your customer returning more frequently to your site, and buying more often.</p><p>Even if they spend a small amount each time, their consistent return is more valuable than a big one-off spender. This type of customer behavior increases your customer lifetime value.</p><p><a href="https://www.customersuccesscollective.com/driving-customer-lifetime-value-by-focusing-on-outcome-success/?ref=communityledgrowth.com">Customer Lifetime Value</a> (CLV) is the total income a business can expect if a customer sticks with your business over a complete relationship. As retaining existing customers is far cheaper than obtaining new ones, increasing your CLV is a great way to drive growth.</p><h2 id="customer-vs-market-segmentation"><strong><strong><strong>Customer vs market segmentation</strong></strong></strong></h2><p>The difference between customer and market segmentation is just in the scale of what they cover. Market segmentation covers the whole market industry your organization’s in whereas, customer segmentation only looks at the part of the market relevant to customers.</p><p>Market segmentation might classify customers based on specific products or broad areas of industry they’re interested in, but customer segmentation goes into the details, focusing on smaller groups of customers and prioritizing their experience with your product only.</p><p>Most marketers aren’t looking to advertise or cover the needs of the whole market, so it’s more effective to look at who you’re actually selling to and prioritize them as your targets.</p><h2 id="types-of-customer-segmentation"><strong><strong><strong>Types of customer segmentation</strong></strong></strong></h2><p>The four basic types of customer segmentation are: demographic, psychographic, geographic, and behavioral.</p><h3 id="demographic"><strong><strong><strong>Demographic</strong></strong></strong></h3><p>This segments customers through non-character traits such as age, sex, ethnicity, income bracket, education level, and profession.</p><h3 id="psychographic"><strong><strong><strong>Psychographic</strong></strong></strong></h3><p>Opposite to demographic, this type of segmentation focuses on customers' specific interests and personalities. This’ll include things such as hobbies, life goals, values, and lifestyles. </p><h3 id="geographic"><strong><strong><strong>Geographic</strong></strong></strong></h3><p><a href="https://www.productmarketingalliance.com/your-ultimate-guide-to-geographic-segmentation/?ref=communityledgrowth.com">Geographic segmentation</a> is one of the easiest and simplest to identify. It uses physical location taking into consideration, postal code, city, region, and country.</p><h3 id="behavioral"><strong><strong><strong>Behavioral</strong></strong></strong></h3><p>This is perhaps one of the most useful for e-commerce marketers as it segments customers based on their online activity. This includes purchasing habits, spending habits, browsing habits, brand interactions, and brand loyalty.</p><h2 id="how-to-segment-your-customers"><strong><strong><strong>How to segment your customers</strong></strong></strong></h2><p>Starting with a bulk load of customers can be overwhelming, so where do you start segmenting to make the overall customer ecosystem make more sense to you? There’re three simple steps to follow which we’ll go through here:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/Ynt499qSUVWyx5zTDlpwuidxVOqqdXBqurT_a8ECwS_kLoZkzae9G1G7_MM6NOPGNDHGJx-wYdHqk3iKl-jxDD_soLqI0cZ6WF9VSkP-0MD7S2UnGPm4UZA3HXPm92Gi62tkkr6I" class="kg-image" alt="Graph showing the 3 steps to customer segmentation: identify your best customers, understand your segments, and execute relevant experiences" loading="lazy"></figure><h3 id="step-1-identify-your-best-customers"><strong><strong><strong>Step 1: Identify your Best Customers.</strong></strong></strong></h3><p>It’s important to note that ‘best customers' doesn’t mean your favorite customers. Be objective and identify who your best customers are by volume, performance, and win rate. Let’s start with volume.</p><p>If you look at your customer demographics and identify which of these make up the majority, then you’ve identified your largest volume demographic.</p><p>But don't just stop there. Biggest volume doesn't mean ‘best’; just because they make up the largest number in your customer pool doesn't mean that they’re who you should prioritize.</p><p>This is where ‘performance’ then comes in. You need to assess how that demographic is performing. It’s no good if your largest demographic has a really low purchase rate, or really high churn rates. So make sure you layer your volume data with your performance data. Useful things to look at here’re <a href="https://www.customermarketingalliance.com/your-ultimate-guide-to-churn/?ref=communityledgrowth.com">churn rate,</a> average revenue per customer, acquisition rate, and product usage.</p><p>The last layer is to assess your potential to ‘win’ that area. This action assesses how much ‘effort’ you’ve made to get and keep these customers. This information will let you know if a certain segment is worth keeping or not. Look at things like customer acquisition costs, the scalability of this segment, and other competitors for this segment.</p><h3 id="step-2-understand-your-segments"><strong><strong><strong>Step 2: Understand your segments.</strong></strong></strong></h3><p>Once you’ve identified the best segments for your organization to focus on, the next step’s to understand them. You can’t do anything with just a random collection of data, you have to make it into something else, something that can give you a concrete overview of all you need to know.</p><p>This is where personas come in. Personas are nifty little tools that help your customer-focused departments understand their audience at a glance.</p><p>For segments, what you use is a quantified buyer persona. This is a persona created from business metrics rather than personal attributes. Things like jobs, pain points, and gains are categorized based on functional, personal, and social value.</p><p>Once you understand your customer segments, you can now evaluate your current workflow, and what it’s doing to work on these segments. This might be nothing at all, or you may already be working well for these segments.</p><p>Begin by setting goals for your organization. What do you want to do with this segment? Map out what you need to achieve these goals and begin adjusting your practices to align with them.</p><h3 id="step-3-execute-relevant-experiences"><strong><strong><strong>Step 3: Execute relevant experiences.</strong></strong></strong></h3><p>This is where you evaluate what experiences currently exist for this customer segment. Good or bad, you should understand where you need to go from its current standing.</p><p>Apply what you learn about your segment to the whole funnel. Some easy ways to do this are by reevaluating your onboarding process, considering how you compare to competitors and getting feedback on your customer support systems.</p><h2 id="customer-segmentation-in-complex-b2b-markets"><strong><strong><strong>Customer segmentation in complex B2B markets</strong></strong></strong></h2><p>What do you need to do when traditional customer segmentation just won't cut it? Discover why a flexible ‘customer lens’ framework can help your organization reduce complexity and present the right products and messages to the right customers.</p><p>Our sister community, Product Marketing Alliance has a great talk on how to overcome segmentation challenges in complex markets and how you can implement this dynamic framework throughout your company.</p><p>Watch this session to discover:</p><p>🤯  How to profile your target customers when buyer decision committees could involve 15+ people across different functions and regions.</p><p>🧠  How to identify customer needs when your products serve multiple industries.</p><p>💻  How to market your products to an early adopter versus a tech laggard.</p><p>⁉️  Which customer classification is most important.</p><div class="kg-card kg-button-card kg-align-center"><a href="https://www.productmarketingalliance.com/customer-segmentation-in-complex-b2b-markets/?ref=communityledgrowth.com" class="kg-btn kg-btn-accent">Watch the talk here</a></div><hr><p>Want to learn more about community-led growth? Professionals from across the globe are sharing ideas, insights, and resources right now in <a href="https://www.communityledgrowth.com/join-the-community-led-alliance-community/">our free Slack community</a>. </p><figure class="kg-card kg-image-card"><img src="https://www.communityledgrowth.com/content/images/2023/03/CLA_Website_Banners_1.jpg" class="kg-image" alt loading="lazy" width="2000" height="577" srcset="https://www.communityledgrowth.com/content/images/size/w600/2023/03/CLA_Website_Banners_1.jpg 600w, https://www.communityledgrowth.com/content/images/size/w1000/2023/03/CLA_Website_Banners_1.jpg 1000w, https://www.communityledgrowth.com/content/images/size/w1600/2023/03/CLA_Website_Banners_1.jpg 1600w, https://www.communityledgrowth.com/content/images/size/w2400/2023/03/CLA_Website_Banners_1.jpg 2400w" sizes="(min-width: 720px) 720px"></figure> </div> <aside class="post-upgrade-cta hidden-upgrade"> <div class="post-upgrade-cta-content"> <img src="/content/images/2024/07/android-chrome-192x192.png" alt="Community-Led Alliance icon" class="site-logo" /> <h2>Like what you see? Then check out tonnes more.</h2> <p class="post-upgrade-cta-desc"> From exclusive content by industry experts and an ever-increasing bank of templates, to 100s of hours’ worth of presentations and mentors, our membership plans are packed with awesome sales enablement resources. </p> <div class="post-upgrade-buttons-wrapper"> <a class="button large primary" href="/signup/">Subscribe now</a> <a class="button large primary" href="/membership/">Learn more</a> </div> </div> </aside> <aside class="post-upgrade-cta get-cert-cta" style="display:none;"> <div class="post-upgrade-cta-content"> <img src="/content/images/2024/07/android-chrome-192x192.png" alt="Community-Led Alliance icon" class="site-logo" /> <h2>Get product marketing certified.</h2> <p class="post-upgrade-cta-desc"> PMMC™ unleashes product marketers’ potential. Lauded by leading lights like Facebook and HubSpot, it offers expert insights, priceless tuition, and awesome resources. No topic missed. No page unturned. </p> <div class="post-upgrade-buttons-wrapper"> <a class="button large primary" href="https://certified.productmarketingalliance.com/p/product-marketing-certified-core" target="_blank">Get certified</a> </div> </div> </aside> <section class="post-full-authors post-full-authors-with-bio"> <section class="author-card"> <div class="post-full-authors-content"> <p>Written by: </p> </div> <a href="/author/eve/"> <img class="author-profile-image" src="/content/images/size/w300/2023/03/Screen-Shot-2023-03-16-at-17.06.24.png" alt="Eve Chatfield" /> <section class="author-card-content"> <h4 class="author-card-name">Eve Chatfield</h4> <p>Eve is a Copywriter at our sister community, Customer Marketing Alliance. She has been writing for as long as she can remember and enjoys creating content that helps others with their career goals.</p> <div class="post-full-footer-right"> <div class="author-card-button">Read More</div> </div> </section> </a> </section> </section> </section> <section class="subscribe-form"> <p>Get industry insights</p> <form data-members-form="subscribe"> <input data-members-email type="email" required="true" placeholder="youremail@example.com" /> <br> <button type="submit">Join</button> </form> </section> <aside class="read-next"> <aside class="read-more-wrap outer"> <header class="read-next-card-header"> <h3><span>More in</span> <a href="/tag/community-operations/">Community Operations</a></h3> </header> <div class="read-more inner"> <article class="post-card"> <a class="post-card-image-link" href="/how-to-build-thriving-communities/"> <img class="post-card-image" src="/content/images/size/w800/2024/08/Heather-VanCura-1.png" alt="How to build thriving communities (based on 20+ years of insights)" /> </a> <div class="post-card-content"> <div class="post-visibility-public" href="/signin">Members-only</div> <a class="post-card-content-link" href="/how-to-build-thriving-communities/"> <header class="post-card-header"> <h2 class="post-card-title">How to build thriving communities (based on 20+ years of insights)</h2> </header> <section class="post-card-excerpt"> <p>Have you ever wondered what makes some communities thrive while others struggle to maintain engagement? 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