Customer segments

Customer segments refer to a specific group of customers that are targeted by the business. In the business model, the customer segment is the specific group of people that the business targets as a part of its market. Each segment has a specific group of people or organisations that the business targets as a part of its market. Each segment has its own unique needs, behaviours and characteristics.

One of the best examples of customer segment identification is that of LinkedIn. In its business model, LinkedIn has identified seven customer segments and is focused on providing value to each of these segments by identifying their unique needs, behaviours and characteristics as under:

1. Career-focused individuals: This segment includes professionals who are seeking employment or career advancement opportunities. LinkedIn provides them a platform to showcase their skills, and experience and connect with potential employers. Features such as job alerts and recommendations are curated for this group. 
2. Recruiters and Hiring Managers: This group comprises professionals or entities that are looking to hire talent. LinkedIn offers them tools like LinkedIn Recruiter, job posting features, and advanced search filters to find suitable candidates which makes the recruitment process more efficient. 
3. Networking Professionals: In this segment, individuals aim to build professional connections, share their insights, and engage in discussion in their industry. LinkedIn facilitates this through features like connection requests, groups, and content sharing in the form of posts and articles. 
4. Businesses and advertisers: Companies often use LinkedIn for brand building, marketing, and sales. The advertising platform, of LinkedIn allows businesses to target ads that are based on various criteria like job title, industry, or seniority by making it a valuable tool for B2B and B2C marketing. 
5. Premium Account users: Premium account users are those who subscribe to LinkedIn’s premium services. The premium features include enhanced search capabilities, detailed profile views, and InMail messaging. The customers of this segment are willing to pay for additional functionality that enhances their LinkedIn experience. 
6. Learning and Development Professionals: By acquiring Lynda.com, LinkedIn entered the professional development and training segment. Through it, which is known as LinkedIn Learning, it caters to individuals and organizations seeking to improve professional skills.
7. Alumni and Students: LinkedIn also targets students and recent graduates by helping them connect with alumni, find internships, or start their career paths. For this segment, the University pages and LinkedIn for students are important highlights. 

Each of these segments has distinct needs and behaviours and the business model of LinkedIn is structured to provide tailored value proposition to each of the segments. By understanding and effectively servicing the diverse needs of the customer segments, LinkedIn has built a platform for professional networking which is comprehensive and robust.

Read More:

• Business Model: An Introduction
• Value Proposition