Have you ever filed an application for a group of angel investors and it asks for your customer segments? Or how your target market is explained when you have more than one type of customer, without sounding weird? If you’ve ever asked yourself these questions, we will tell you what is the customer segments and give you some examples for you to understand.
5 Examples of customer segments
Let’s start with the basics: What are the customer segments? They are groups of people that your business will be conducted. There are different ways you can classify different types of customer segments that you can choose for your startup:
This term applies to companies that do not distinguish between the needs of customers. “We are all created equal” could be their motto. However, beware! It could also be “we do not care”; that is what clients think when we don’t make them feel special.
A company aimed at a niche market believes that its customers have special needs and point to that. Their motto is “You are special and we love you but hate everyone else”.
Diversified markets are self-explanatory: they are different. They target two groups of customers with entirely different needs. They exist to prove that “do not discriminate”. A good example: Amazon.com. Sell books, but also offers hosting in the cloud for developers.
Multiple Faces market
Companies that have several faces markets, often serve as the “middle man” between two different markets, different needs. A realistic example of this would be a newspaper company. They need to produce news content, and then it will act as a “facilitator” of the relay to the reader.
In general, this is the most widely used customers of market segmentation. Here, a company would serve the same market, but be segmented based on slightly different needs. For example, the market for shoes: all go on the feet, but they are not all alike; there are different materials and styles, but they are shoes after all.