Who are my customers? How to define my customer segments?
In order to answer these questions, you have to collect information about your customer’s environment, experiences and general context and to analyse these information. These factors will determine how the customer will respond to a product or service creating a customer archetype.

A company can choose to target a single group or multiple groups through its products and services. Matching the customer segment with the value proposition influences the volume of revenue streams. It is fundamental for a company to understand the difference between the customer segments and carefully select which segment it wants to target.


A company can categorize consumers into distinct groups if they have the following characteristics:

  • The customer groups have a particular need which justifies the creation of a product to match this need.
  • The group needs a specific distribution channel to be reached.
  • The groups require relationships of different kinds.
  • There is a very clear difference in the level of profitability each group represents for the organization.
  • Each consumer group feels strongly enough to pay for a different version of the product or service, tailored to their preferences.
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