Consumer segmentation: Meaning, Example & Formula

Definition

Consumer segmentation is the process of dividing consumers into groups based on shared characteristics. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

In the room

How the word shows up in a real conversation.

Two cofounders disagree until they define Consumer segmentation. Once they agree it means “Process of dividing consumers into groups based on shared characteristics”, the argument becomes a decision.

Common mistake

Using Consumer segmentation as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

Consumer segmentation

Definition

In the room

Common mistake

See also

Every startup word, in one place

Consumer segmentation

Definition

In the room

Common mistake

See also

On this shelf

Every startup word, in one place