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Customer Segmentation

StrategyStrategy and alignment

Reference model

Customer Segmentation FrameworkA canvas of 7 boxes laid out on a grid of 3 columns and 3 rows: Demographics, Geographics, Psychographics, Behavioral, Needs-based, Value-based, Segment Profiles.DemographicsAge, gender, income, educationlevel.GeographicsLocation, urban vs rural,climate.PsychographicsLifestyle, values, interests.BehavioralPurchase history, brand loyalty,usage rate.Needs-basedSpecific needs, pain points,desired outcomes.Value-basedCustomer lifetime value,profitability.Segment ProfilesDetailed descriptions of each segment.

Segmentation helps in understanding diverse customer profiles for better engagement.

About this model

A method for dividing a customer base into distinct groups based on shared characteristics, behaviors, or needs.

Originator not stated.

How to read it

  • Look for distinct patterns in customer data that suggest different needs.
  • Evaluate the potential value of each segment to prioritize marketing efforts.

What this does

Identifies distinct groups within a customer base to tailor marketing strategies and improve customer engagement.

When to use it

Use it when you need to understand different customer needs and behaviors to enhance targeting and personalization.

Not when: Do not use it when your customer base is too small to warrant segmentation or when all customers have similar needs.

What happens next

Develop targeted marketing strategies for each segment identified.

Golden thread

Builds on ←

  • Customer data analysis
  • Market research

Feeds into →

  • Targeted marketing strategies

Use this tool, free

Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.

Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.