The Right Way to Segment

Most SaaS products are replaced or competed by other players every 6 months, No Matter how Innovative they are. The Reason is most SaaS businesses I see, have ZERO Ideas about the Switching Costs of their users and their audience. Their idea of Market Segmentation blinds them to never realizing the real value they are creating in the customer journey. Segmentation a.k.a We serve only People in ___ doing ___ suffering ___, Causes most leaders to blindly trust that their audience would never switch to other software. This is also the reason most products are never able to hit high Customer Lifetime Values a.k.a I will be replaced by another technology in the next 6 months. Segmentation is the mistake that causes most relationships to break up (Even the personal ones🤫), It gets you to assume you own that Account/Customer. Unless...you do it the right way. To segment your market in a Crude Simple Way: 𝙄𝙣𝙘𝙧𝙚𝙖𝙨𝙚 𝙎𝙬𝙞𝙩𝙘𝙝𝙞𝙣𝙜 𝘾𝙤𝙨𝙩𝙨 Calculate how much the customer is losing if they leave you. This is not a simple thing, it has more branches than your marketing automation sequence(Gotcha!) But here are a few things you can consider to increase switching costs for your audience, 1. Social Currency(Social Status) 2. Habit and Ease of Use 3. Monetary Value Optimizing on these 3 things would make sure to increase the switching costs of your product. But still, these are very broad terms, and probably outcomes of your actions. And what is the action...? 𝐏𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐢𝐧𝐠. You cannot successfully implement any of the above 3 strategies if you don't position yourself in the market correctly. So much, it seems 𝙎𝙚𝙜𝙢𝙚𝙣𝙩𝙖𝙩𝙞𝙤𝙣 𝙞𝙨 𝙉𝙤𝙩𝙝𝙞𝙣𝙜 𝙬𝙞𝙩𝙝𝙤𝙪𝙩 𝙋𝙤𝙨𝙞𝙩𝙞𝙤𝙣𝙞𝙣𝙜. How to position your product in the market, 'Brand Story'. It's a very comprehensive document that becomes the backbone of any growth campaign you do for your product in the future. The Brand Story includes: 1. The Ideal Customer Profile 2. The Marketing Source of Truth 3. Competitive Analysis 4. Customer Objections 5. Persona/Character of your Brand, the Villain, and Ideal Customers. When you do the required amount of research to position yourself in the market, segmentation becomes a natural outcome. This is how real segmentation works, it's not jargon or slogans. It's pure and crude market research and positioning.