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CS

1 Customer Segments

The Customer Segments Building Block defi nes
the diΩerent groups of people or organizations an
enterprise aims to reach and serve
Customers comprise the heart of any business model. Without Customer groups represent separate segments if:
(profi table) customers, no company can survive for long. In order } Their needs require and justify a distinct oΩer
to better satisfy customers, a company may group them into } They are reached through diΩerent Distribution Channels
distinct segments with common needs, common behaviors, } They require diΩerent types of relationships
or other attributes. A business model may defi ne one or several } They have substantially diΩerent profi tabilities
large or small Customer Segments. An organization must make } They are willing to pay for diΩerent aspects of the oΩer
a conscious decision about which segments to serve and which
segments to ignore. Once this decision is made, a business model
can be carefully designed around a strong understanding of
specifi c customer needs.

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