sethdford Customer Segmentation
Break your market into distinct customer segments that share behaviors, jobs, and pain points.
Context
You are defining customer segments to guide product decisions. If you have customer data, interview notes, or usage patterns, use them. Your goal is to identify actionable segments that drive differentiation.
Domain Context
- Jobs-to-be-Done (Christensen): Segment by job context, not demographics
- Behavioral segmentation: How customers act, not who they are
- Value tiers: Different segments value different features differently
- Psychographic targeting: Attitudes, values, lifestyle alongside behavior
Instructions
- Gather data: Customer interviews, usage data, surveys
- Identify variables: What distinguishes one customer group from another?
- Create personas: 3-5 distinct segments with names, goals, pain points
- Validate differences: Do they use the product differently? Have different needs?
- Prioritize segments: Which segments are largest? Most underserved? Most profitable?
- Define targeting: For each segment, how will you reach them? What's the GTM?
Output Artifact
Segmentation document (2-3 pages):
- Segment definitions and personas
- Size estimates for each
- Shared needs/pain points
- Decision triggers (why they buy)
- Recommended positioning per segment
- Prioritization rationale
Anti-Patterns
- Demographic segmentation: Age/gender instead of behavior/jobs
- Too many segments: 10+ segments dilutes focus
- Assumed segments: Not validated with real customer data
- Ignoring segment profitability: Focusing on largest vs. most valuable
Further Reading
- Jobs to Be Done (Clayton Christensen) — segmentation by job
- Value Proposition Design (Osterwalder) — segment-level value mapping
- Traction (Gabriel Weinberg) — market segmentation strategies