Investor Connect Podcast

Product Segmentation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Product segmentation creates different versions of the product for different users.

Novice users may get a version that is simple to use while power users have access to tools that are more complex.

One can achieve product segmentation by using a platform approach to the product.

A platform approach provides a basic architecture upon which you can build easier-to-use tools as well as modules that provide more access and control over the system.

The key to product segmentation is finding customers who will pay for the differentiated versions.

A platform approach provides a basic system that can be customized for different use cases.

By looking at lost customer reports you can identify new versions of the product for development.

It’s best to test the product concept before committing resources.

A good product segmentation strategy should accommodate the good, better, best pricing strategy.

This captures the low-end user as well as the high-end power user.

A strong software and hardware architecture is required to run a successful product segmentation strategy.


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Direct download: Product_Segmentation.mp3
Category:general -- posted at: 5:00am CDT