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Lean Tools, Training, and Systems

Customer Segmentation

Why segment your customers?

To better understand the differing needs of your differing types of customers

so that you can focus your attention on things your customers care about

(and are willing to pay for)

How to use your

Customer Segmentation template

Before you start

If you have not yet defined your product (or service) families, then you might do that first...

using your Product Family Matrix template


Product Family Matrix template

Find and open your template

Find and open your Customer Segmentation template


in the same way that you find and open your other 150+ Systems2win templates.

Excel Ribbon bar > Systems2win menu

Save your working document

following the usual document storage and naming conventions established by your leaders

Open a Blank Sheet

When you're ready to start doing your own real work...

click the button to 'Open a Blank Sheet'

Excel Ribbon bar > Systems2win tab > Open a Blank Sheet

This blank sheet is where you will do your real work

(not on the Sample sheet — which gives you sample data that is extremely helpful for learning how to use your new tool, but is the wrong place to do your real work)

Systems2win menu > Open a Blank Sheet

Rename your new sheet.

If English is not your preferred language

Switch to your language, just like every Systems2win Excel template.

Now your team is ready to start doing

Customer Segmentation

Step 1) Identify primary customer segments

Perhaps use Brainstorming techniques.

Customers can be external and/or internal.
Customers might include supply chain partners.

Step 2) Define sub-segments

Define characteristics that you believe may affect how each type of customer might respond to this product or service.

Examples of segmentation criteria:


Sales, profitability, length of relationship, frequency of purchase, cost of doing business, customer purchasing potential, strategic goals regarding market share or market leader penetration...


Customer size, geographic location, customer logistical complexity
(e.g. single vs. multi-location), industry...


Customer interests, features that interest customer most, service expectations, quality expectations, level of price sensitivity...

Customer Segmentation template

You'll get a lot more out of this training if you have your template open in front of you

And like every Systems2win template, click any column header for pop-up help

Step 3) Prioritize your target customer segments

All customers are not created equal.

What are the profiles for the best customers for this product or service?

Use the dropdown list to select the Priority codes that you define on the DV sheet.

Step 4) Use this knowledge

Make sure that each of your target customer segments are represented in anything you do to understand the Voice of your Customers.

(e.g. interviews, surveys, focus groups...)

Ensure that any data that you collect is stratified to allow analysis by these customer segments.