Product Segmentation Strategy

Targeting is identifying and specifically catering to visitor segments based on their needs and requirements and accordingly presenting the right service or product to them. Targeting -

  • Draws on the segmenting ability of your products/services.
  • Brings focus to your web efforts.
  • Increases effectiveness with key segments with interest in your products/services.
  • Allows a more customized experience for visitors.
  • Results in Higher conversions.
Let's look at some practical scenarios from different industries

Example 1:


A computer training school provides both Word and Excel classes.

Product Segmentation Strategy

The Problem:

  • Word classes tend be attended by less computer savvy students.
  • Their positions are often administrative and they are looking to simplify their work lives.
  • Excel classes attract accountants and analysts.
  • They are looking for more knowledge of Excel functions.

Question: Should the Word and Excel classes be marketed using similar content?

The Answer:

  • No.
  • The Word Classes should be marketed more on a benefits basis.
  • Specify how attendees would make their day easier and more efficient.
  • The Excel Classes should be marketed on a features basis.
  • Emphasizing the areas of Excel functions that a visitor will learn about.

Result: The prospects for each class type will receive content that is more convincing to them.

Example 2:

A financial planner provides services which help businesses to increase their profitability.

The Problem:

  • One service area focuses on improving cost management through budgeting.
  • Another service area focuses on ROI based budgeting.
  • Prospects interested in cost management are focused on accounting systems.
  • Prospects focused on ROI based budgeting are looking for strategic decision making advice.

Question: Should there be separate marketing content for each of these two service areas?

The Answer:

  • Yes.
  • Cost management prospects will need examples of simple to use budgeting systems.
  • ROI based budgeting prospects will look for facilitation skills of the consultant.
  • Result: Using different content will better target the unique prospect segments in each of these areas.

Targeting can further be divided in three sub categories:
  • Product Segmentation
  • User Segmentation
  • Pain segmentation

Product Segmentation: In layman's language, Product segmentation is categorizing your services/products as per the industry or user requirement. This could include tailoring of your services/product lines to meet the user requirements.


  • Understanding the different content requirements of prospects.
  • Assessing your products key customer segments.
  • Identifying common content and process needs based upon common product interests.
  • Customizing user experience based on findings during segmentation.
Why your company should aim towards segmentation?
  • Better connection with the visitor.
  • Value apparent to target segments.
  • More specific targeting of content.
  • More efficient experience for visitor.
  • Correct order of content.
  • Ability to balance investment to ROI.
  • Better ability to measure effectiveness.


1. Describe the Targets

  • Analyze your current customer base.
  • Describe the key customers for each product line.
  • Determine their industry, position, needs and business stage.

2. Drive and Satisfy Visitors
  • Connect content which matches your product to those characteristics.
  • Drive visitors by offering them a choice of product categories at their entry points.

3. Measure and Adapt
  • Implement analytics to measure effectiveness of efforts.
  • Use A/B testing to precisely establish effectiveness.
  • Then go big with most effective methods.
  • User & Pain segmentation will be discussed in the upcoming weeks.

AfterTheNet's precise strategy approach takes advantage of visitors self profiling -- giving you the power to target them more closely. The combination of 100's of similarly precise web strategies creates the strategy process which allows ATN to yield exceptional results for clients.

Product Segmentation Strategy

Neil is a member of the Knowledge Center Team at AfterTheNet. Our expertise helps clients' Marketing Teams to align to their business goals and targets. We are led by diversely experienced Business Executives giving you that cut above the rest advantage.