Methods of customer segmentation

Before we go on segmenting the users, we need to create at least 2 ICPs for your products. By now you're a pro at doing this, click **here** to refer back to the ICP section!

Driving Engagement and Retention strategies are based on the kind of users we have and how they behave. This called for an in-depth segmentation that explores all aspects of the segmentation we've done in the previous assignments plus and addition framework-based segmentation.

While for B2B products revenue generation or product/features used might be a better framework to dig deeper into.

For B2C products ICP/persona-based framework would be a better alternative.

Understanding which engagement framework to track is extremely important!

(read more on engagement frameworks here!)

Engagement Framework	Relevance	Key Metric to be tracked	Rationale
Breadth	Primary/Secondary/Tertiary
Depth	Primary/Secondary/Tertiary
Frequency	Primary/Secondary/Tertiary

Once we have a basic segmentation, you could dig deeper and do an advanced segmentation based on RFM Grid. We analyze the Recency, Frequency, and Monetary aspects of the product.

(The RFM framework does not apply to all products, apply it to mature scaling businesses)

User Type	Casual	Core	Power
Usage Characteristics
Recency of use case
Natural Frequency
Monetary/AOV/Revenue Generated
Pain Points
Valued Features
Core Value Proposition (CVP) being utilised
JTBD of the persona
Discovery
Level of Engagement

Validation of the segmentation:

It is extremely important to validate the segmentation by user insights or market research, this is where all your documentation comes into play, make use of it judiciously!

(refer to this article to widen your understanding of the product)

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