Kenichi Ohmae, former head of McKinsey & Company Japan and the theorist who developed the 3C's model, prescribes that customer-based market segmentation involves two primary approaches.
The first method is objective-based segmentation, which categorizes customers based on how they use a product or service. Take coffee, for instance. Some people consume it for an energy boost, while others enjoy it for relaxation and socializing during coffee breaks. Different customer groups exhibit variations in preparation methods, taste preferences, serving size, and even the choice of cups. While both groups fall under the "coffee" business unit, those who use coffee recreationally can be grouped with the leisure and home entertainment market.
Understanding how your product or service is being used can open up several opportunities that can lead to an excellent customer experience and potentially increase revenue.