{"id":2389,"date":"2024-08-05T10:00:00","date_gmt":"2024-08-05T10:00:00","guid":{"rendered":"http:\/\/138.197.200.24\/resources\/blog\/what-is-customer-segmentation-in-saas-and-how-is-it-useful\/"},"modified":"2026-08-06T10:58:12","modified_gmt":"2026-08-06T10:58:12","slug":"what-is-customer-segmentation-in-saas-and-how-is-it-useful","status":"publish","type":"blog","link":"https:\/\/www.smartkarrot.com\/resources\/blog\/what-is-customer-segmentation-in-saas-and-how-is-it-useful\/","title":{"rendered":"What is Customer Segmentation in SaaS and How is it Useful?"},"content":{"rendered":"
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In B2B businesses, we often use the 80-20 rule that says, 80% of the profits are incurred from 20% of the customers. This is the foundation of customer segmentation in SaaS.<\/p>\n

As a SaaS business, you\u2019d have often tried to make your service \u2018good for everyone\u2019. As a matter of fact, it never really benefits your business. Targeting \u2018everyone\u2019 out there is definitely not on a successful business\u2019s to-do list. The very first rule of business marketing often begins by stating the importance of a target audience and defining what customer base you are addressing. But, that\u2019s certainly not enough.<\/p>\n

What is Customer Segmentation?<\/h2>\n

Segmentation refers to the division of a market or service on the basis of various features that bind every group together. Customer segments<\/a> are groups of customers that share common characteristics like industry, number of employees, products, location, etc for B2B marketing and gender, age, preferences, demographics, etc for the B2C market. These segments are then treated with different engagement strategies.<\/p>\n

Smaller segments and targeted campaigns have been proved to increase open rates, click-through rates, and customer interest than average.<\/p>\n

Why is Customer Segmentation in SaaS Important?<\/h2>\n

Statistics reveal that 81% of the customers trust their friends and family\u2019s advice for choosing between applications. On the other hand, a\u00a0report<\/a>\u00a0suggests that, in 2020, 86% of the buyers would pay more for better customer experience on an application.<\/p>\n

Even after deducing the customer base that is to be targeted, segmentation can do wonders for your business. It can affect both, the\u00a0service, as well as the\u00a0communications\u00a0of the company.<\/p>\n

Segmentation allows you to send niche-focused marketing messages and implement specific marketing strategies to adherent groups of people. Every segment identifies itself on the basis of a few parameters which are instrumental in deciding the marketing strategy to be used.<\/p>\n

Depending upon a particular customer segment, it becomes easy for you to devise the best communication channel for the people. While one segment may be easy to engage through email marketing, other strategies like social media marketing might work well on the other.<\/p>\n

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