Customer Segmentation

Big vulnerability for startups is choosing customers… Normally startups don’t know the concept of “Customer Segmentation”… A customer makes vital role in making or breaking of a company… It is true that Customers are king of the ring but still one must know how to manage them…

If we thing we are not exposed to Customer Segmentation we are wrong, we come across the concept of segmentation in our day to day life… As a startup your first learning of segmentation starts with banks… Banks puts startups at the bottom most level in servicing… Banks segment is based on the basis account balance and possibilities of selling other banks products… Like wise in flights business class gets special treatment than economy class… Segmenting customers is mostly ignored and this is one big thing which can change the fate of a startup company… I’ve seen many startups which didn’t segment their customers and ended up being exploited by them and forced to close down…

It is a known fact that most of the “Hard Customers” help in getting more business and learning, but we must know the point where we must take control…

I’m listing a simple matrix which I use for my business and ask my people to use it for segmenting our customers… For startups the matrix of segmenting customers is simple…