SERVICES

Customer Segmentation

Segmentation needs to earn its keep.

We custom-build segmentation to do one thing: unlock growth across brand, marketing, innovation, and CRM.

Why most audience segmentation misses the point

It’s not that segmentation doesn’t work. It’s that too often, it’s built for the wrong purpose.

Too many projects start by asking, “what do you want your segments to look like?” when they should start with, “what are problem you trying to solve?”

After all, if it’s not helping you tailor messaging, refine products, improve customer experience—and drive growth—it’s a waste of time, money, and the dusty shelf it’s sitting on.

We flip the process: starting with the commercial challenge, then designing the solution around it. Because segmentation is a tool for growth, not the outcome itself.

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Why Basis segmentation?

We don’t do segmentation for its own sake. Every project starts with a business problem and ends with a blueprint for where to play and how to win.

Where segmentation creates impact

If segmentation isn’t actively reshaping your business decisions, it isn’t working.

Modern segmentation fuels:

  • Brand portfolio: clarifying which brands win which audiences and why
  • Audience immersion: unlocking deeper emotional, functional, and behavioral drivers
  • Commercial strategy: surfacing the audiences and markets that unlock the next growth curve
  • Marketing planning: sharpening targets, messaging, channels, and spend efficiency
  • Product innovation: building solutions audiences actually want before competitors get there
  • CRM strategy: personalizing journeys that drive lifetime value and loyalty

Segmentation should touch every part of your growth engine. Otherwise, it’s just wasted potential.

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Built on a proven framework

Our approach to segmentation is structured but flexible and designed to move from insight to action fast.

Every project is grounded in a proven framework that connects four essential stages: designing for business impact, identifying future growth audiences, delivering clear segment strategies, and activating across teams.

Every decision, every design, and every output is built to drive growth, not sit in a slide deck.

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How target audience segmentation became the foundation for BT Group’s brand growth strategy

Basis created a common language and a simple framework to help us make a success of our portfolio of brands.

This work is at the heart of our strategy for the BT Consumer business unit and continues to inform our approach to positioning, pricing, propositions and marketing across the BT, EE and Plusnet brands.

Leah Kennedy Head of Commercial Insight, BT

Your future customers aren’t waiting

Stop segmenting for segmentation’s sake. Start segmenting for business impact.

The segments that define your future are already out there. Find them before your competitors do.

Find your next growth segments

Audience Segmentation FAQ

What is market segmentation?

Market segmentation is the process of dividing a broad market into smaller groups of customers who share similar needs, behaviors, or characteristics. 

The goal is to understand how different groups think and behave so you can target them more effectively with the right products, messaging, and experiences.

The real impact comes from how it’s used, not just how it’s defined.

What is customer segmentation?

Customer segmentation focuses on your existing or reachable audience, grouping customers based on behaviors, needs, or value.

It’s used to improve targeting, retention, and customer experience by making communication more relevant.

Why is segmentation important for business growth?

Segmentation helps businesses focus on the audiences that matter most.

By identifying high-value or high-growth segments, you can prioritise investment, sharpen your positioning, and design products and experiences that are more relevant. Done well, it leads to stronger engagement, higher conversion, and more efficient growth.

What are the different types of segmentation?

There are four core ways to segment a market:
• Demographic, based on characteristics like age, income, or job role
• behavioral, based on actions like purchase patterns or usage
• Psychographic, based on attitudes, values, and motivations
• Geographic or firmographic, based on location or company attributes

Most modern segmentations combine multiple approaches to reflect how people actually make decisions. 

How does audience segmentation research work?

Segmentation research collects data on your audience, then uses statistical techniques to identify distinct groups with shared patterns of behavior or need.

This can include survey data, behavioral data, CRM data, and qualitative insight. The output is a set of clearly defined segments, each with its own profile, size, and strategic role.

How is modern segmentation different from traditional segmentation?

Traditional market segmentation research often produces static frameworks that quickly go out of date or sit unused.

Modern psychographic market segmentation is designed to be more actionable and adaptable. It connects directly to business decisions, integrates multiple data sources, and is built to be activated across marketing, product, and commercial teams rather than sitting in a slide deck.

How many segments should a business have?

Most customer segmentation models land between 4 and 8 segments.

Too few and you miss meaningful differences. Too many and the model becomes difficult to use. The right number, and effective segmentation criteria, depends on how distinct the groups are and how easily they can be activated within the business.

What makes a good segmentation?

A good customer segmentation analysis is:

• Distinct, each segment behaves meaningfully differently
• Actionable, it clearly guides decisions
• Measurable, you can size and track segments over time
• Usable, teams across the business can apply it

If it doesn’t change decisions, it’s not doing its job.

How often should segmentation be updated?

Most businesses revisit segmentation every 1 to 3 years.

However, in fast-moving categories, elements of psychographic market segmentation can be refreshed more frequently using ongoing data sources or AI-driven updates to keep it relevant.

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