Customer Segmentation Template: 3 Ways to Activate

Customer Segmentation Template: 3 Ways to Activate

Plus, Key Questions at Each Step

A customer segmentation template enables business leaders to better understand different groups of consumers for their product, including:

  • What motivates them?
  • What brand and products are they currently using?
  • What are their category and brand needs?
  • How to best reach them?

Developing an actionable customer segmentation, however, is both an art and a science that often requires advanced analytics to build segments using attitudinal and behavioral inputs. 

Once built, this foundational knowledge can be used to develop a strong consumer-centric brand and growth strategy.  Below is a customer segmentation template with three ways to activate and drive impact with customer segmentation.

1. Customer Segmentation Template:
Identifying Profitable Targets

The goal of a customer segmentation is to understand consumers, but not all consumers are of equal value – some are more involved than others, and some might drive a disproportionate amount of spend.  The most practical application of customer segmentation is using it to inform targeting and communication. 

By identifying the most valuable consumers to the brand and what matters most to them when buying the category, marketing can create a compelling brand positioning and customer experience that will maximize reach and consumer engagement.

Key question to ask at this step:

  • Which segments are most involved in the category?
  • Which segments are spending the most?
  • Which segments are the most valuable/open to your brand and what benefits matter most to them?
  • How big are the segments and will it allow for brand growth?

Here is a different take on a customer segmentation template, which includes a detailed guide on profiling and selecting targets

2. Customer Segmentation Template:
Identifying New Product Opportunities 

A customer segmentation template is all about understanding the consumer – what motivates them and what product needs they have.  From a needs standpoint, a lot can be gleaned from learning:

  • Products and brands they are currently using
  • Benefits sought and pain points
  • Brand perceptions and delivery against benefits sought

This information is very impactful when it’s leveraged by innovation teams to uncover new product opportunities and potential unmet needs.  

Key questions to ask at this step:

  • What are the needs of core/expansion targets, and how well do current product offerings/brands deliver against those needs?
  • Are there any major unmet needs or pain points with products currently used?
  • What benefits are associated with brand loyalty/preference?
Customer Segmentation Template: 3 Ways to Activate

Here’s an example of how Gatorade used customer segmentation to drive their innovation strategy. 

3. Customer Segmentation Template:
Portfolio Gaps and/or Niche Markets  

Lastly, by building a comprehensive view of consumers, a segmentation can also be helpful in identifying portfolio gaps.  These might be groups of consumers that your brands are not currently reaching – perhaps an untapped niche market that is emerging but attractive long-term. 

Key questions to ask at this step:

  • Are there any consumer segments that my brand portfolio is not reaching or has low penetration in?
  • What are the drivers behind low penetration?
  • Are there attractive or emerging segments we should consider targeting with existing or new brands?
Customer Segmentation Template: 3 Ways to Activate

Here is how Clorox used customer segmentation to develop their portfolio strategy and introduced a new brand – Green Works – to go after an emerging natural cleaning segment.

For more on customer segmentation templates, visit our customer segmentation resource page or sign up for the Insight to Action newsletter.

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