Goal: Define and size distinct customer segments based on shared characteristics, needs, and behaviors, enabling prioritized go-to-market and product strategies.Documentation Index
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Tools Required
This skill runs using CORE memory only. No integrations required.Step 1: Define Segmentation Dimensions
Ask: What factors differentiate your customers? Pick 2-3 primary dimensions:- Company/Organizational — Industry, company size (revenue, headcount), geography, maturity, growth stage
- Role/Functional — Job title, function, seniority, responsibilities
- Behavioral — Use case, problem being solved, buying pattern, engagement level
- Economic — Budget size, purchase power, price sensitivity, procurement model
- Technographic — Tech stack, infrastructure, data volume, integration needs
Step 2: Define Segment Archetypes
For each combination of your dimensions, create a named segment. Example:- Small SaaS Ops Manager — Startup/scale-up, self-serve, cost-sensitive, 1-5 users
- Enterprise IT Director — Large org, buying committee, budget available, 50+ users, compliance-driven
- Individual Consultant — Solo practitioner, flexible use, minimal support needs
Step 3: Profile Each Segment
For each segment, fill out:- Characteristics — Company size, role, industry, tech stack
- Problem/Job to be Done — What are they trying to accomplish? What’s the pain?
- Success Metrics — How do they measure value from a solution?
- Buying Process — Self-serve, sales, committee, RFP?
- Budget — Typical budget range and procurement authority
- Current Solution — What do they use today? (competitor, manual, spreadsheet)
- Switching triggers — What makes them look for alternatives?
Step 4: Size Each Segment
Estimate market size using multiple approaches: Top-down: Industry reports, TAM estimates- Example: “There are 500,000 companies in the [industry]. If 20% have this problem and our TAM is $10B, and we capture 5%…”
- Example: “We’ve signed [X] customers in this segment. Average deal size is $[Y]. If conversion stays constant, the addressable market is…”
Step 5: Assess Attractiveness & Fit
Score each segment on:- Market size — Is it big enough to matter? (1-10)
- Growth potential — Is the segment expanding? (1-10)
- Product fit — How well does your solution solve their problem? (1-10)
- Go-to-market ease — Is it easy/cheap to reach and sell to them? (1-10)
- Defensibility — Can you own this segment long-term? (1-10)
Step 6: Identify Segment Sequencing
Ask: “Which segment should we target first?” Consider:- Immediate opportunity — Where can we win customers fastest with current product?
- Foundation — Which segment gives us a strong reference customer for moving upmarket?
- Cash generation — Which segment has the highest LTV or shortest payback?
Step 7: Present Segment Analysis
Market Segments Segment Overview
| Segment | Size (TAM) | Growth | Product Fit | GTM Ease | Priority |
|---|---|---|---|---|---|
| [Segment 1] | $[X]M | [Y]% CAGR | 9/10 | 8/10 | 🚨 Go Now |
| [Segment 2] | $[X]M | [Y]% CAGR | 8/10 | 6/10 | ⚡ Next |
| [Segment 3] | $[X]M | [Y]% CAGR | 7/10 | 4/10 | ℹ️ Future |
- Market Size: [Y]M, SAM: $[Z]M)
- Characteristics: [Company size, role, industry, geography]
- Job to be Done: [What are they trying to accomplish?]
- Key Pain Points:
- [Pain 1]: Current workaround [Workaround]
- [Pain 2]: Impact on [metric] is [Negative outcome]
- Success Metrics: [They measure success by: X, Y, Z]
- Buying Process: [Self-serve / Sales / Committee] — Timeline [Weeks/Months]
- Typical Budget: [Max] per [year/month]
- Current Solution: [Competitor / Spreadsheet / Manual process]
- Switching Trigger: [What makes them change?]
- Competitive Landscape: [Key competitors], Differentiation: [Yours]
- Estimated Conversion: If [Effort], expect [X]% conversion → [Y] customers
-
Phase 1 (Now): Target [Segment 1]
- Reason: Largest TAM + highest product fit + lowest GTM friction
- Success metric: [X customers signed by Month Y]
- Go/No-go gate: [Decision point if not on track]
-
Phase 2 (Month X): Expand to [Segment 2]
- Reason: Product learnings from Segment 1 apply; growth opportunity
- Success metric: [X customers signed by Month Y]
-
Phase 3 (Month Y): Explore [Segment 3]
- Reason: Lower priority; reassess based on product evolution
Edge Cases
- Segments overlap: Define clear boundaries. Ask: “If a customer fits both Segment A and B, which one is primary?” Use the dominant use case to classify.
- Market size estimate varies wildly: Flag the uncertainty. Ask: “What would give us confidence?” (research report, customer surveys, sales experiment). Default to conservative estimate.
- Segment is too small: Ask: “Is there a larger adjacent segment we should target first?” Combine micro-segments or deprioritize.
- All segments score equally: Reassess your scoring. Ask: “If budget was unlimited, which would you build for?” Use that as a tiebreaker.
- Segment requires product changes: Note it. Ask: “Are these changes aligned with our roadmap or do they require a pivot?” Decide on sequencing based on effort and strategic fit.
