---
title: "Growth Model Segmentations"
type: doc
evidence_type: method
category: "Growth Modeling"
publisher: "LeanScale"
date_modified: 2023-09-19
word_count: 398
topics: ["forecasting", "gtm-strategy"]
canonical_url: https://knowledge.leanscale.team/docs/growth-modeling-building-a-growth-model-growth-model-segmentations/
source: "LeanScale Knowledge Hub — https://knowledge.leanscale.team"
license: "Free to quote and cite with attribution to LeanScale."
---

# Growth Model Segmentations

**Evidence type:** method (what we prescribe)

Segmentation determines whether a growth model reflects the business or averages it away. The usual cuts are firmographics, geography, sector, and product, and the right one is whichever produces genuinely different conversion rates and deal sizes — a segmentation that does not change the math is not worth carrying.

### Segmentation Methods

There are a number of ways to segment your customer base. Here are a few key segmentation methods:

#### 1. Firmographics

Firmographics are the collective traits of a company, encompassing its size, sector, and geographic location. By categorizing your customer base according to these features, you can gain insights into your business's performance across various company profiles. For instance, you might discover a higher conversion rate with large enterprises over smaller businesses.

#### 2. Geographic Information

Geographic segmentation is about breaking down your customer base by location. It's a smart move if you're working across regions or countries, as each place might have its own unique sales patterns, conversion rates, and other influencing factors.

#### 3. Sector

By segmenting our customer base by industry, we can gain a clearer understanding of our performance across various sectors. For example, financial institutions may have longer sales cycles and more red tape, while e-commerce or tech companies may be more agile in their decision-making.

#### 4.Product

For those of us with a multi-product business, segmenting our customer base by product can be a game-changer. It helps us understand how each product is faring—some might be flying off the shelves, while others are better suited for specific industries or regions.

### Aligning Your Growth Model to Segmentation

Once you’ve got your customer base sorted into segments, it’s time to adjust your growth model accordingly. This means customizing your marketing, sales, and customer success strategies to fit each segment. For instance, you might need to tweak your marketing campaigns, sales pitches, or onboarding processes to better suit each group.

By segmenting your customer base and aligning your growth model accordingly, you can increase the efficiency and effectiveness of your marketing, sales, and customer success efforts. This will ultimately lead to accelerated growth for your VC-backed startup.

Segmentation is a cornerstone of a robust growth model for a VC-backed startup. By gaining a deep understanding of your customer base and segmenting it into meaningful groups, you can personalize your marketing, sales, and customer success strategies for each segment. The outcome? Enhanced efficiency, effectiveness, and accelerated growth.

## Canonical

https://knowledge.leanscale.team/docs/growth-modeling-building-a-growth-model-growth-model-segmentations/