Framework F017: Market Segmentation Strategy – Identify high-value customers

Identify, quantify, and prioritize your most valuable audience segments for focused growth

Your product isn’t for everyone — and trying to reach everyone is a recipe for wasted time, budget, and messaging.

This framework shows you what market segmentation is and how to use it to break down your audience into clear, quantifiable groups. You’ll learn to apply segmentation models — including demographic, behavioral, geographic, and psychographic — and focus on the segments that offer the greatest return.

What You Will Achieve With This Framework

✔ Understand the importance of market segmentation for product and marketing strategy

✔ Apply four types of segmentation: demographic, psychographic, behavioral, geographic

✔ Build customer segmentation models that reflect real-world needs and revenue patterns

✔ Estimate segment size and revenue potential with simple, practical formulas

✔ Prioritize customer segments based on alignment, size, and growth

Who This Is For

  • Startup founders and strategists launching into broad markets

  • Marketers and GTM leads refining campaigns and messaging

  • Product managers aligning feature sets to specific audience segments

  • Innovation teams seeking traction in new or underserved markets

When to Use It

Use this framework when:

  • You’re building personas or targeting a new market

  • Your product is resonating with some users, but not others

  • You want to maximize ROI by focusing on the most valuable segments

  • You need a data-driven approach to customer prioritization

What This Framework Replaces

✘ Generic messaging that doesn’t speak to anyone

✘ Lack of clarity on who your real customers are

✘ One-size-fits-all product design and pricing

✘ Missed opportunities due to unprioritized markets

How It Fits Into Your Innovation Process

This framework fits before GTM or product roadmap decisions. It ensures you're focusing your strategy, features, and messaging on the right people — not just the loudest.

Framework Sections

  1. Why Segmentation Matters: Target the right customers, increase ROI

  2. Types of Market Segmentation: Includes definitions and real-world examples

  3. Quantifying Segments: Revenue potential, purchase behavior, and average spend

  4. How to Build Segments: A practical step-by-step process using research, CRM data, and more

  5. B2C & B2B Examples: Fitness apps, energy companies, SaaS tools — all with real segmentation cases

  6. Final Checklist: Ensure segments are distinct, prioritized, and strategically aligned