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Why market segmentation is so important.

Updated: Oct 24, 2023

If your plan is to go after 100% of the market, it won't work.

Market Segmentation

Proper customer segmentation is a critical part of every business plan. By taking the necessary time to do this, you empower your business to address specific customer needs. You can't please everyone, but you can do an excellent job of making a specific group of people happy.

  • With a specific target, you can tailor your message so it speaks to the value that they care about.

  • When you have a tailored message, you can continue to refine it to better connect with your target customer and increase the share of that segment of the market.

  • Your happy customers will talk to others within your target segment and recommend your service/product because they know it solves a problem the group faces.

Make sure to use tools like HubSpot to track your sales and marketing activities, and ZoomInfo to target the right contacts. I give some great tips on how to choose the right software in my blog post, How to choose the right enterprise software for your business.

Targeting 100% of the market is broad and doesn't give you a path to growth. Targeting a segment that makes up 25% of the market allows you to talk to them directly and deliver actual value that will motivate them.

💡 45% of 25% is greater than 10% of 100%.


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