Back to main menu
Search
Search
Overlay
Royal Bank Business Builder

Identify your customer segments

Thinking about product/market fit

The more you know about, and understand your customer, the more likely it is that you’ll be able to build a repeatable, scalable and sustainable business model. Product/market fit is the link between what you’re building and who wants to buy it. The goal is to connect your value proposition (from the Business Model Canvas) with your customer. We’re going to help you to create a customer persona that you can test and then refine.

Who are your customers?

Spend some time reflecting on the following questions for your business, taking the time to really think about who has the problem or need that your business is addressing.

  1. 1

    Who has the problem or need that you have identified?

  2. 2

    Do they know they have the problem or need that you have identified? Are they already using an alternative solution or searching for a solution?

  3. 3

    How big is the problem, or need, for that customer? And is the problem or need significant enough for that customer to pay for a solution?

  4. 4

    How many people have this need or face this problem?

  5. 5

    Are there different segments of people that have this problem/ need? (if so answer the above questions for them too)

Once you have completed the questions, ask yourself; do I know this for sure or do I still need to test this further?

Identifying customer segments

Spend some time reflecting on who you think your customers are, then tackle this set below. Do this for each customer segment you’ve identified, drilling down into as much detail as you can.

  1. Tick icon

    Tip: Identifying customer segments within both reachable and total markets will enable you to be more targeted in your approach and allow you to test our assumptions with customers that are accessible in the first instance.

  2. 1

    Can you split the customer groups you identified in the previous chapter into smaller segments?

  3. 2

    Which of these customer segments can you speak to? Or are easily reachable?

  4. 3

    How could you speak to these customers?

  5. 4

    What is the total addressable market for your product or service? (Customer segments and market size)

  6. 5

    Is the total addressable market large enough to support a viable business?

Again challenge your answers further and ask yourself; what do I need to do to test my answers further?

Customer personas

Now take some time to create a customer persona for each of your customer segments, focussing on the behaviours and motivations of a typical customer.

Actions

  • Take some time to review what you've learned so far about your customers and customer segments. 
  • Write down three key actions that you're going to do. Remember to make them specific, put a deadline on them – and share them with your fellow entrepreneurs so they can hold you accountable.

Well done, you have completed the customer segments module

Continue to build your business through: