Segmentation is the identification of customers who share similar needs and demonstrate similar buying behavior.  Segmentation matches groups of prospects and customers with the same set of needs and buyer behavior.

There are a number of criteria that assist with development of a segmentation strategy:

*  Is the segment viable?
*  Can we make a profit from the segment?
*  Is the segment accessible?
*  How easy is it for us to get into the segment?
*  Is the segment measurable"
*  Can we obtain realistic data to consider it's potential?

The goal of customer segmentation is to break down an audience into discrete customer groups that share similar characteristics.  Customer segmentation can identify met and unmet customer needs.  Companies that identify underserved segments can then out perform the competition by developing unique offers and modify products and services.

Customer segmentation is an effective way to customize and deliver offers to specific customer segments that have higher ROI and serve them with unique competitive advantages.  This can help companies develop marketing campaigns and pricing strategies to maximize value from both high and low profit customers.  A marketer can use customer segmentation as a basis for allocating resources to media, product development, marketing services and delivery.

Marketers can use segmentation to:

*  Acquire new customers based upon existing profitable customers
*  Grow the value of customer segments
*  Reduce churn or attrition
*  Maximize customer value management
*  Prioritize product development efforts
*  Develop customized or tailored marketing programs
*  Choose specific product features focus
*  Establish appropriate service options
*  Deliver unique customer experience

As usual, I welcome your comments and suggestions!