Two questions come up in almost every strategy session:

• “Do we really need consumer segmentation?”
• “And how many segments should we even have?”

Let’s cut through the noise.

Segmentation isn’t a branding fad. It’s not about making pretty charts with clever tribe names like “Urban Dreamers” or “Mindful Snackers.” It’s the starting point if you want to grow a brand that actually resonates and sells.

Segmentation Done Right

Real segmentation isn’t about categories for the sake of categories. It’s about understanding how people truly differ — in their needs, behaviors, motivations, and most importantly, their value to your business.

And here’s the first truth: there’s no perfect number of segments. You don’t get a prize for having five. You win when your segmentation helps you make smarter decisions:

• Who to target.
• What to say.
• Where to play.
• And what to ignore.

That’s where growth begins.

The Trap: Segmentation ≠ Strategy

Here’s where most brands stumble. They stop at the segments.

Charts, personas, even glossy decks with moodboards — all without answering the only question that matters: which segment drives your business forward?

That’s why every segmentation needs a zoom-in on the SVC — Strategic Value Consumer.

The SVC isn’t always the largest group. But it’s the group that matters most:

• They’ll pay full price.
• They’ll come back.
• They’ll recommend you.

You don’t need to win everyone. You need to win them.

Concepto Insight: Segmentation That Works

At Concepto, we’ve seen how bad segmentation can stall growth.

One FMCG client came to us with 8 “tribes” from a global research agency — complete with colorful names and glossy profiles. But when it came to decision-making, the teams were stuck. Which tribe gets the media budget? Which one gets product innovation? The deck looked impressive, but it didn’t guide action.

Our role was to reframe it. We simplified the segmentation, aligned it to actual purchase behavior, and identified the Strategic Value Consumer. The result? Clearer decisions, sharper campaigns, and measurable growth.

That’s the difference between segmentation as a report — and segmentation as a business tool.

Unconventional Wisdom for CMOs & Founders

Here’s the part that rarely gets said: Segmentation isn’t about understanding everyone — it’s about knowing who not to chase.

Trying to appeal to every segment is how brands become generic. The brands that win are those disciplined enough to focus, even if that means walking away from “potential audiences.”

In other words: segmentation isn’t about widening your reach. It’s about narrowing your aim.

Takeaway

• Segmentation is not a trend. It’s the foundation of growth
• There’s no magic number. The right number of segments is the one that helps you decide what to do next.
• Segmentation ≠ strategy. You still need to identify your Strategic Value Consumer.
• Focus beats breadth. You don’t need to win everyone. You need to win the right ones.

Final Thought

At Concepto, segmentation is never a report for the shelf. We either build it ourselves or guide research agencies to deliver insights that are strategic, not cosmetic. Because the point isn’t to have tribes with fun names — it’s to build your brand, your marketing, and your business around the customers who actually drive your bottom line.

👉 If your segmentation looks good in slides but doesn’t guide decisions, it’s time to rethink it.