Factfile 10
The benefits of customer-driven segmentation
Using customer-driven segmentation, makes the task of developing appropriate propositions for each segment much easier. This is because the buying criteria for each segment provides the guidelines. The challenge, therefore, is to find better ways of satisfying the customer segment needs.
It is often argued that needs-based segmentation by its very nature is hard and takes time - especially if you have not researched this area before - and this argument is used to justify product based segmentation or even industry type segmentation.
The latter approach assumes, for example, that all the employees in your company act the same when it comes to selecting which products or services to buy.