Customer segments refer to the different groups of customers that a business targets with its products or services. This building block helps businesses better understand their customers' needs, behaviors, and preferences and tailor their offerings to meet those needs effectively.

To better understand a business’s customer segments, you can make use of:

• Personas. Personas are fictional characters that represent different customer archetypes. For example, a technology company targeting small business owners may create personas to represent different customer segments. One persona may be a small business owner who values ease of use and convenience in technology products. Another persona may be a small business owner who values flexibility and customization options.
• System maps. System maps are diagrams that visualize the various touchpoints that customers have with a company. For example, a healthcare provider may use a system map to identify the different stages of the patient journey — from initial contact to post-treatment follow-up. By doing this, the healthcare provider can identify areas for improvement, such as long wait times or unclear communication.