Segmentation IV

 It is strongly recommended that you go beyond segmentation by internal categories... 

Segmentation based on economic drivers for your customer defining the commercial relationship is the most advanced form of segmentation..  It provides by far, the most useful market insight--but determining which characteristics and how to use them can be challenging.  The table below shows three levels of segmentation maturity.  It provides, by far the most useful market insight--but determining which characteristics to use and how to measure them can be challenging.

The lower levels of segmentation are common and are based on simpler criteria, but they provide more limited.  It is strongly recommended that you go beyond segmentation by internal categories (low on the maturity table), as these generally proved almost zero insight into customer behavior and are likely to simply reinforce internal perspectives and biases.

ACTION POINT: Keep in min that strategy is about competitive differentiation.  If you are using the same segment categories as your competitors, you are far less likely to distinguish yourself in the market.