For segmentation to be successful, it requires three conditions.
These conditions are measurable, sizeable, and reachable.
In just about any case, you need data to be successful and have something to refer to. You need to be able to measure the size of your market segmentation. This is why having data is so important. You need to be able to measure different aspects of your segmentation. Measurements provide the ability to be able to modify future segments in order to improve them.
This condition is critical. The market segment should be large enough for it to be profitable. This will allow your market segments to capture the interests of others. Large numbers catch the eye of CEO’s and VP’s which in turn will make your segment interesting enough to dive in deeper.
When developing a market segment, it needs to be reachable, in terms of distribution and communication. You need your communication and distribution efforts to reach your consumers. When this occurs, you have a better chance of attracting your consumers and having them become responsive to your communication. If you create a market segment that is not easily distributed or communicable, then it will not be as effective.
By following these three conditions, your market segment will be sound and effective, and you will better target your potential customers.