If you've studied marketing or spent time hanging out with marketing geeks, then you know something, probably a lot, about "consumer segmentation." It is one of the fundamental tools of modern marketing. Segmentation is simply the process of dividing potential customers into different groups, as it is easier and more effective to tailor an offer to a relatively small group of people with similar desires and interests. it needs to try to mass market something to the world. (It's surprisingly difficult to sell earthworms to people who aren't fishermen, gardeners, or pranksters.) Segmenting our potential markets is something we all do intuitively. We know that most products, or homes, won't appeal to everyone. So, let's try to define the "perfect buyer" in our mind. Segmentation models are generally built based on demographic data (age, income, gender...), psychographic aspects (lifestyle, personality, values...), geography (city, neighborhood, postal code...) and other personal attributes. It's common to see people segment their prospects based on factors like gender and zip code, in part because it's easy to get this information and get it in a format that can be immediately used. There are more than a few listing brokers who will sell or rent to you a list of women 55 and older living in the 90210 zip code. The big question when looking at segmentation is: the segments and the attributes that define them Are they really distinct and useful? IN THE CONTEXT OF YOUR OFFER? A good segmentation model should be based on good data, give an idea of ​​what the key purchasing criteria for each segment are likely to be and, by extension, how to best communicate with them. Income and net worth are common attributes in segmentation models. Everyone wants a share of the people with the fat wallets, and that's understandably so. Robert Frank, author of Richistan, the popular book about the rich, divides the rich into three main groups (based on net worth): Richistan* Low Richistan: $1-10 million* Medium Richistan: $10-100 million* High Richistan: $100 million-$1 billion Segmenting by net worth or income is an obvious approach. It's especially useful for qualifying potential buyers and looking at potential market size, but it's not always as useful as you might think in a working segmentation model.