ResearchSegmentation

Market Segmentation

The process of dividing a broad target market into subgroups with shared characteristics, needs, or behaviours.

Market segmentation is the strategic act of splitting your addressable market into distinct groups that can be prioritised and addressed differently. For B2B SaaS, common segmentation dimensions include: company size, industry, buyer role, GTM motion (PLG vs. sales-led), tech stack, and growth stage. Good segmentation leads to better ICPs, sharper messaging, and higher conversion — because you're making specific promises to specific people instead of generic promises to everyone.

Related terms

Ideal Customer Profile (ICP)

A detailed description of the type of company most likely to buy, succeed with, and expand your product.

Customer Persona

A semi-fictional representation of a specific buyer type — their role, goals, pains, and decision-making context.

Total Addressable Market (TAM)

The total revenue opportunity available if a product achieved 100% market share of its target market.

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