Customer Segmentation: A Complete Guide and Examples That Work

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Ehsanuls55
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Joined: Mon Dec 23, 2024 3:33 am

Customer Segmentation: A Complete Guide and Examples That Work

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Customer segmentation is both simple and complex to understand. And yet, it is one of the most important issues for all your B2B prospecting activities.

What is customer segmentation? What are the benefits of good customer segmentation? How do you segment your customers?

In this article, I'll answer all of these questions, with some bonus examples of customer segmentation that works!

What is customer segmentation?
Customer segmentation is a methodology that consists of dividing your customer portfolio into different subgroups, called segments .

This segmentation is based on segmentation criteria such as demographic, intent-based, or account-based.

Although the principle of customer segmentation is similar in B2B and B2C, the method will differ significantly from one to the other:

In B2C, customer volumes are often much larger, and segmentation criteria almost always refer to the potential customer .
In B2B, the volumes are much smaller, and the criteria can also refer to the account (=company).
In both cases, it is your segmentation strategy that determines the quality of your segmentation and, therefore, the vp business development email list success of the rest of the process.

What are the advantages of customer segmentation?
Good customer segmentation is essential for any sales or marketing strategy. This is because it allows you to benefit from a number of elements:

Better ROI : You send your prospecting messages to the right customers, the ones who convert. Your messages are more targeted and personalized, therefore more engaging. You save time = you save money. All of these advantages contribute to increasing your ROI.
Higher MRR and ARR : A better ROI, but not only that. Because you save time, you reach more people, and those people convert more. This automatically increases your monthly and annual revenue, for the same workload.
Best image : Targeting errors are common in B2B prospecting. Poorly selected customers not only waste your time, but also convey a poor brand experience. A detrimental side effect for your brand strategy!
As you can see, segmenting your customers is not just important. It has become a must, especially in a competitive environment.


Do you want to reach your leads at every step of their journey?
Well, only The Growth Machine can do it for you. Learn how right here!
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How to segment your customer base?
So now you know what customer segmentation is and – like all forms of segmentation – why you need it so much.

Let’s dive right into the nitty-gritty of how to actually go about segmenting your customers.

But, instead of just giving you the generic “segment by demographics and then psychographics” nonsense, how about we take a real-life example of how we, The Growth Machine, segment our own customer base?
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