Segment Customers

4. IMPROVE

Step 4. Find New Needs-Based Customer Segments

Develop new segments based on the needs of your Core customers. (
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) These new segments will inform your product and service innovation ideas. The segmentation work involves three steps:

Defining the Customer Type
Describing Customer Costs
Segmenting Customers by Need

The last step provides you with several thousand new segmentation ideas. To help you get a running start on this brainstorming task, we suggest you read our overview of Segments by Needs in the Perspective entitled "Customer Segmentation: Finding the Human Dimension."

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