How Do You Choose the Right Segments to Target?
Revenue Optimization: Selecting the Right Customer Segments
You should start with data that already lives in your CRM and product logs. Then group customers by variables that shape willingness to pay. Validate segments with historical sales outcomes and qualitative interviews, and refresh boundaries regularly because behavior and market trends change over time.
Key Segmentation Variables
- Usage Intensity
- Light vs. power users often accept different price‑volume trades.
- Industry or Vertical
- Regulations or budget cycles change spending capacity.
- Buying Context
- New logo, renewal, or expansion drives distinct value stories.