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Customer Segmentation is not a one size fits all

By Jay Nathan

One of the most elemental pieces of our customer retention and growth strategy...

It’s a challenge to come up with a one size fits all model, but here’s the 3 layer framework we use with our clients:

Layer 1 - Market: Who are our customers relative to our ideal client profile? What’s their size, industry, or other defining demographic characteristics?

Layer 2 - Growth potential: What are customers in each market segment spending relative what they *could* be spending. This helps us differentiate customers we need to protect vs ones we need to actively grow.

Layer 3 - Health and other factors These are all the ways to group customers according to **what** activity we need to drive with them. Lifecycle stage, adoption, executive engagement, use case, product attachment... the List goes on and is unique to each #saas business.

Really it’s all about prioritization.

When prioritized in this order, we can focus on business that aligns with our company strategy (ideal clients) and growth opportunities, AND on the key factors that drive outcomes for customers at every stage.

Are your customer priorities aligned with your company priorities for the year ahead?


Published February 5, 2020
About the Author

I've spent my career working in technology companies to build customer-centric teams, processes and technology platforms. In 2017, I founded Customer Imperative, a consulting firm that helps fast-growing B2B SaaS companies improve renewals, increase expansion sales and scale customer engagement. See full bio ›

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