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Benefit Segmentation

Market research 04 12
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Benefit Segmentation allows you to group your audience based on the value you offer them. Not every customer wants the same product or service from your brand. It is important to divide your audience based on the value they favor. You can develop an effective market strategy to showcase the product’s value to target specific customers.

For example, a company is planning to launch different types of sneakers. Some customers may value fit, utility, and quality, while others may be concerned about color and fashion. The company can segment customers in terms of their preferred value. It can target a segment by marketing the attribute that they prefer.

Marketers can identify the customers who will profit from their business. They will also ensure an increase in sales and profit for the company.

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Benefits of Benefit Segmentation

Customer Acquisition:

As we have mentioned, Benefit Segmentation is used to identify customers who will benefit the most from the products or services of your brand. It helps identify a potential customer who is most likely to become your paying customer. These customers are motivated to buy your products because they have a need for the value proposition of your products or service.

So, you can also use it for the acquisition campaign. Targeting a segment of potential customers on the basis of profit they receive from your brand.

Convert Leads into Customers:

Your sales representatives can use the value proposition preferred by the audience to convert them into your customers. Segmenting your market will help you develop a marketing campaign that is aimed at the right audience. As a result, you will be able to appeal to those customers who are best suited for the products, services, and content your brand has to offer.

These people are motivated to do business with your brand because they need your product. Your sales team will have an easier time pursuing these customers and closing the deal.

Customer Engagement:

The segmentation of the audience can help the marketers and sales team to develop marketing agendas and strategies. You can identify the value that helps your business, products or services stand apart from the rest.

Marketers can use these values to develop marketing advertisements, strategies, and messages to draw the attention of potential customers.

The sales team can use these values as a USP of the brand and influence the customer’s decision in favor of the brand.

The company knows how to make the brand different from the entire market and attract your target customers.

Reduce Churn Rate:

Knowing what makes your product a customer favorite and how they benefit from your products/services, allows you to provide them what they are looking for. You can offer your customers exactly what they want and improve their experience with your company.

By making sure that your product or service meets the needs of the different segments, your customers will continue to purchase from your company.

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Famous Companies using Benefit Segmentation


Nike is famous for offering a wide range of sport-related products targeting various customer segments. The company not only offers designer apparel but of high quality for performance.

Nike aimed at female audiences from young demography for their marketing campaign featuring Serena Williams. The company is well aware of the value they offer to their customers. Athletic confidence is aimed as the central value and the products are targeted towards young female audiences.


Spotify, the most famous and loved music streaming app is made for people who want free service as well as for those who enjoy extra benefits (Spotify premium).

Spotify crafts its advertisement based on the value it offers to the listeners or music lovers. They have made ads for audiences who enjoy music in their car. Their ad to enjoy music when stuck in traffic aims to remove boredom and stress.

They have also advertised the brand by aiming for another segment in couples and friend groups. Their premium benefit of sharing one Spotify account with their lover or friend groups is another initiative. They can create and listen to different playlists and it costs them lower than paying for a separate Spotify premium account.

Benefit Segmentation1
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Examples of using Benefit Segmentation

Appliance Manufacturers:

When marketing your appliances you can segment the audience based on their reason to buy your products.

Some customers may want to buy products that cost less. They may be less concerned about the quality and more about how much they can spend.

Some customers may want products of good quality and are willing to pay more. They care about the quality and safety of the product and won’t mind paying extra for a warranty.

Some customers may have no issue buying expensive products. They want a high-end product and can pay any amount for the product.

Mobile Company:

Mobiles can have values in terms of need, status symbols, etc.

Customers from the young generation are more socially active. They need phone features like cameras, apps, and other fun features.

On the other hand, older customers may only need their phones for making calls. They want features like battery life and will look for low-cost phones.

People who use phones for work would look for durable and inexpensive phones with more battery life and security.

People who use phones as status symbols look for expensive phones. They want technologically advanced and stylish phones.

How to Segment your Audience2



Benefit Segmentation is the process of clustering the audience in terms of the value or benefit of the products that appeal to the customers. It takes under consideration the value or benefits perceived by a customer about the product.

Knowing the value that customers want from your product you can decide how to position your product for success and profit. You can effectively market the products that offer the desired value to the right target audience.

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