By CommenceCRM

5 Requirements for Effective Segmentation

drawing on a paper with crm goal

Market segmentation is a marketing technique that almost all companies practice. The process provides marketing strategists with data for a better understanding of their market, allowing them to create more personalized and profitable strategies. This practice is important for companies because it minimizes the amount of time, money, and effort marketing strategists put in certain campaigns.  

So, what are the requirements for effective market segmentation? Effective segmentation should be measurable, accessible, substantial, differentiable, and actionable. When a company has segmented their market accordingly, there is a higher chance that it will become more profitable and successful in the long run. 

5 Requirements for Effective Segmentation

Identifying the requirements for effective market segmentation allows companies to create marketing campaigns that are essential for their growth and development. Here are the five criteria for effective market segmentation:  


The size and purchasing power profiles of your market should be measurable, meaning there is quantifiable data available about it. A consumer’s profiles and data provide marketing strategists with the necessary information on how to carry out their campaigns. 

It would be difficult to create advertisements for markets that have little to no data or for audiences that can’t be measured. Always ask whether there is a market for the kind of product or service that your business wants to produce then define how many possible customers and consumers are in that market. 

2. Accessible

Accessibility means that customers and consumers are easily reached at an affordable cost. This helps determine how certain ads can reach different target markets and how to make ads more profitable. 

A good question to ask is whether it’s more practical to place ads online, on print, or out of house. For example, gather data on the websites a specific target market usually visits so you can place more advertisements on those websites instead. 

3. Substantial

The market a brand should want to penetrate should be a substantial number. You should clearly define a consumer’s profiles by gathering data on their age, gender, job, socio-economic status, and purchasing power.  

It doesn’t make sense to try and reach an unjustifiable number of people — you’re just wasting resources. However, you also don’t want to market the brand to a group too small that the business doesn’t become profitable. 

4. Differentiable

When segmenting the market, you should make sure that different target markets respond differently to different marketing strategies. If a business is only targeting one segment, then this might not be as much of an issue. 

But for example, if your target market is college students, then it’s essential to create a marketing strategy that both freshman students and senior students react to in the same positive way. This process ensures that you are creating strategies that are more efficient and cost-effective.

5. Actionable

Lastly, your market segments need to be actionable, meaning that they have practical value. A market segment should be able to respond to a certain marketing strategy or program and have outcomes that are easily quantifiable. 

As a business owner, it’s important to identify what kind of marketing strategies work for a certain segment. Once those strategies have been identified, ask yourself if the business is capable of carrying out that strategy. 

CRM Solutions at Commence

Market segmentation is one of the most important components of your business’ marketing strategy. Commence CRM provides businesses with CRM solutions and programs to help them effectively reach their target market. Our experts equip companies with the proper technology and software to make it more profitable and successful. Find out how Commence CRM can help your business. Get started today.