"Your customers do not exist to buy, you exist for them", Steve Blank, [[Udacity - How to Build a Startup]]. In the [[Business Model Canvas (BMC)]], [[customer segment|customer segments]] refer to the various groups of individuals or organizations that a business seeks to reach and serve. These segments represent the target audience for a company's products or services and can be identified based on characteristics such as demographics, behaviors, needs, or preferences. Identifying and understanding customer segments is important because it enables businesses to tailor their value propositions, marketing strategies, and distribution channels to address the specific needs and expectations of each segment. By clearly defining customer segments, companies can concentrate their efforts on the most valuable and relevant groups, ensuring that their offerings align with what these customers value. This targeted approach aids in creating more effective marketing campaigns, improving customer satisfaction, and supporting business growth. To understand who your customers are and why they would choose your product or service, you need to get out of the building and identify their geographic, social characteristics, and demographics. With this information, you can define your customer [[customer archetype|archetypes]] and [[customer persona|personas]]. When you begin, you only have hypotheses about who they might be. ## Activity - Watch the video [Bus. Model Canvas Customer Segments](https://youtu.be/Q7_HU07fINo?si=V4iCiteDtKfVxTWd) ([[Udacity - How to Build a Startup]], Lesson 3.4) Next: [[What are channels?]] Back to: [[An Introduction to the Business Model Canvas]]