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Market Segmentation: Best Practices for SMB, Enterprise and Strategic Customers

Updated: Apr 13, 2022

So many customers, so little time. You have customers of a wide range and size — SMBs, Mid-Market, Enterprise, etc., but how do you organize and sort them?

Benchmark your customers based on a “fit” / segmentation matrix — run a quick analysis to understand what the customer needs are (i.e. what problem are you solving for them?) as well as what value they provide to you as a company (ARR? Use case expansion? High profile customer logo? etc). Once the quick (usually) analysis is complete, it will help you better segment and prioritize the customers.

Here are the typical customer segmentation buckets:

Once the customers are broken down into their segmentation and fit, further prioritize by customer effort levels to CSM ratios. Less effort the customer requires, the more customers a CSM can take on and vice versa. A word of caution, if the customer is low effort, but still higher ACV/ARR, make sure that the CSM gives them the appropriate amount of attention.

Do you agree or disagree? What are some ways you segment your customers? Please share your thoughts and ideas.


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