Know your target market
Customer Segmentation

Customer segments represent the different types of customers your industry serves. By dividing your market into segments, you'll understand the different groups of customers from which you can choose your target market.

At a Glance

Segments should be meaningful, measurable and profitable.

Each segment is bound together by:

  • Buying behaviour
  • Needs
  • Demographics
  • Tastes
  • Other characteristics

Consider a swimming pool cleaning service, with customer segments such as:

  • Home pool owners
  • High schools with pools
  • Apartment buildings with pools
  • Sports clubs
Target Customers

From your list of customer segments, identify your target customers " the type of customer your business focuses on " and their defining characteristics.  Ask yourself:

  • What's most important to these customers when buying a product or service like yours?
  • How often do they buy? How do they prefer to make their purchases?
  • How are these customers currently filling their need for your product or service?
  • What aspects of your offer will convince them to choose you?

Your Roadmap to Success
Our interactive business planning tool will set your business on the road to success.

Need more info?

Find an Advisor