How Do You Segment Your Customer Base?
Unless your business is selling to a very thin vertical, it’s likely you will actually have multiple “best customer” types, and thus more than one ICP! So how do you separate (or “segment”) these different customer types?
Your goal is to divide your customer base into specified groups defined by similar characteristics, needs, or other firmographic categories. Looking back at How to Create a Productive ICP, as you begin identifying similarities in your “best” customers there may be multiple groups that have similar firmographic traits.
By way of example, let’s take a look at Square, the point of sale and finance company. Like many companies, Square segments their customers by industry.
Square is pretty transparent with its segmentation, listing each ICP they’re targeting in their primary navigation, as well as the footer of their website:
Square breaks its customer base into 10 “Business Types,” of which include: enterprise, retail, coffee shops, quick service, full service, bars & breweries, beauty professionals, health & fitness, home & repair services, and professional services.
Each page is specifically crafted towards that customer base (most likely identified as an ICP from research of Square’s existing customers). If we take a look at the “coffee shops” page vs the “health & fitness” page, they not only have aesthetic differences, but the products and services that are promoted are modified to best suit the ideal customer at hand.
Coffee Shop Page:
Health & Fitness Page:
This is a great example of the sales and marketing teams utilizing ICPs and customer segmentation to effectively target several types of ideal customers.
(As an aside, building out a unique section of your website targeting each of your ideal customer types is also a best practice for SEO, as well as conversion optimization!)
Segmentation helps you prioritize the specific businesses you’re trying to attract with your marketing efforts, prioritize the businesses that your sales team engages with, and understand how to talk to these ideal customers.