Customer Segmentation (the easy way)

Segmenting your customers makes your product sharper. Instead of trying to please everyone, you build specifically for the right people. It makes your work easier, your decisions smarter, and your results clearer.

But many teams either skip segmentation entirely or get lost in complexity. Let’s simplify it.

First, focus on similar needs

A segment is just a group of people who share similar needs. It's not about labels—it's about spotting patterns you can use to make better products and clearer messaging.

Where segmentation usually fails

Teams often trip up because they:

• Skip segmentation altogether.

• Use impractical or confusing dimensions.

• Mix up traits (age, job title) with actual needs.

• Create personas without data to back them up.

• Never actually put segments into practice.

Don't try to get it perfect from the start. A simple 90-minute session with basic information is enough for your first version.

How I start: brainstorming useful dimensions

I never aim for perfection at first—just a strong starting point I can refine over time.

Start with existing resources:

• Industry reports or internal data (great for benchmarks)

Then brainstorm dimensions like:

• Standard: Geography, company size, demographics, behavior

• Industry-specific: Purchasing roles, system complexity

• Psychographic: Motivations, values, identity

• Common sense: Your own team’s intuition and experience

For each dimension, ask:

• Does it reveal different needs?

• Can we realistically get this information?

• Can we compare it with market data?

• Can we use it to target or message differently?

Not every dimension needs to tick every box—just know your trade-offs.

A handy tool: The morphological box

I love using a morphological box. It's just a structured grid where you mix and match dimensions to quickly visualize customer segments.

Usually, 3-5 dimensions create about 2-6 useful segments. Here's a simple example for a B2B SaaS product:

You don't need every combination—the box just helps spot extremes, overlaps, or gaps.

From these options you can start to select useful combinations if needed.

• A small, price-sensitive in business model C

• A medium, premium oriented company running business model A

Might be a good grouping.

Real-world lesson: What works, and what doesn’t

In one B2B ERP project, we tried two dimensions:

• Company size worked: Larger companies had lower satisfaction. Interviews explained why clearly.

• Digital maturity failed: People couldn't accurately assess themselves. It wasn't reliable or actionable. We dropped it quickly.

Segmentation often won’t be perfect the first time. Learning from quick, small tests is far better than spending ages trying to "get it right."

Segments change—and that’s okay

Segments aren't set in stone—they shift over time. Good segmentation adapts to the moment.

For example, in sports e-commerce:

• Player skill matters at product selection.

• But at checkout, price, trust, and delivery matter—not skill.

Segmentation is a lens, not a rigid spreadsheet. Adjust it as needs evolve.

Make segments stick

Segments only help if you actually use them in daily work. Here's how:

• Interviews become more useful (talk to the right people).

• Market comparisons get clearer (how do you match industry segments?).

• Product strategy becomes sharper (who exactly are you focusing on?).

• Surveys get more meaningful (which segments are happiest?).

• You build products for real people, not faceless crowds.

  
  

Bottom line:

A segment is useful if it helps you make better decisions.

Everything else? Just decoration.