Segment Customers

3. DIAGNOSE

Step 3. Complete Activity One: Steps 1 to 12 in the Basic Strategy Guide

Activity One: Segment Customers (Steps 1-12): Segment customers, both by size and by need, to identify targets for the Company. Your business must grow to prosper. You grow your business by selling more of your Company's product. You increase your sales by selling more products to your current customers and by finding new customers to buy your products. But, not all customers are equally valuable to you. Your best customers are the core of your business. The purchases these Core customers make from you provide a good profit for your Company, a profit large enough to make a good return on your investment in the business. Other customers are less valuable to you than the Core customers. Some will purchase products from you, but at low prices. Or, they will be costly for you to serve because they require a lot of service but buy little from you. Others will not buy from you at all. The time and resources you spend on them are wasted.

This first activity of the Basic Strategy Guide identifies your Core customers, or those who could become Core customers, and creates new segments of these Core customers according to the needs these customers have that you and the other competitors in the market have not met yet.

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