Structure its decisions with complete clarity and ensure the performance of its company regularly goes through theStrategic segmentationThis leverage helps to clearly distinguish which areas of activity are really relevant, to identify threats and opportunities according to built-up criteria, and to allocate resources in a coherent way, far from mere traditional marketing cuts. Understand this process – guided by logicDASand the Abell model – that is to avoid over-segmentation or ambiguous mixtures, and gain a solid vision allowing to adjust the action on the ground.
For some field consultants, mastering this stage means ensuring both clarity and efficiency in strategic arbitrations, and bypassing many operational pitfalls (a training manager recently mentioned how awkward segmentation can cause significant losses).
What is strategic segmentation?
Strategic segmentation is proving to be the key tool to break the reality of a company into coherent strategic areas of activity (SFA). It helps guide its analysis and major decisions. It consists of bringing together activities in homogeneous groups according to truly strategic criteria, far from the "standard" marketing divide. It is found both in the plans of large groups and in those of SMEs – on average, a structured society listsbetween 2 and 10 DASDepending on the size or diversity of its activities (source Manager GO!).
Conversely, poorly adjusted segmentation can quickly lead to fragile choices or even wasted resources. (A businessman compared this to sailing at sea without a map: dangers and opportunities may be invisible.)
At the beginning of strategic thinking, segmenting is used to answer a central question: what groups of activities should be considered separately to drive performance, anticipate competition and allocate resources wisely? It is regularly observed that the issue is both methodological and operational: relying on an approximate segmentation leads to globalising analyses and can lead to significant errors.
Some field managers say how much they regret not having clarified their segments earlier – "it's not always obvious," but profit is needed.
Why segment strategically?
Adopting a strategic segmentation allows us to go beyond the general approach and to consider each trade or market according to its real stakes. From a practical point of view, segmenting helps to: decide where to concentrate investment, identify areas with high potential or risk, prioritize means, and adjust the strategy in response to market or competition developments.
For example, an SME with multiple activities, with3 to 6 DAS, can actually better target its efforts, avoiding segments with low profitability.
Some concrete benchmarks:
- ✅ Allocate resourcesbased on the measured potential of each DAS
- ✅ Threats and opportunitiesfor each sector identified
- ✅ Update segmentation when market conditions change (some field teams do so each year or during a major transformation)
Thinking about the consequences of a miscarriage is a simple question: what is lost by wrongly investing in a declining sector or dispersing its forces over too many segments?
What criteria should be used to segment strategically?
The effectiveness of segmentation depends in particular on the relevance of the selected criteria – the Abell model – "Who? What? How?" – now stands as a benchmark, both in large companies and for SME managers. This framework ensures that areas are based on a logic combining market, needs, and skills.
Several industry experts indicate that at Manager GO!, this model structure more than800 practical contentEach year, there is evidence of its robustness in the field.
The three criteria of the Abell model
The Abell model invites you to cross three axes:
- ✅ Who?: customer segments or targeted prospects
- ✅ What?: needs or uses addressed
- ✅ How?: technologies, skills or methods used
Concrete example: a training company can dissociate a DAS "Online Diploma Training" (Who: Students, What: Diploma Need, How: Digital Platform) from a DAS "Business Coaching" (Who: Employees, What: Get Up in Skills, How: Presential or Blended). A field adviser recently noted that this triple reading provides immediate clarity in arbitration.
The advantage – each DAS thus structured is treated in isolation, both for profitability, competition or development potential (a strategy consultant shared that the distinction avoids confusion between business lines).
How many criteria and segments?
Field experience shows that it is generally recommended to stick to3 to 5 main criteria, not to make the analysis too complex. For the number of DAS, the majority of professionals find an optimum between2 and 10segments (source Manager GO!).
Nothing precludes the risk of over-segmentation being real beyond: readability and decision-making suffer from it. "We end up multiplying the segments without an identified gain," laments a strategy trainer.
Using an Abell matrix (clients, needs, technologies) facilitates visualization and analysis – many managers even print these matrices with available PDF resources.
How do marketing segmentation and strategic segmentation differ?
Many companies commonly confuse marketing segmentation with strategic segmentation – while pursuing distinct objectives, using specific methods. The first target clients to adapt offers and campaigns, the second activity structure to make substantive decisions on the portfolio strategy.
To better understand the difference, here is a comparative table:
| Strategic Segmentation | Marketing segment |
|---|---|
| Cut byareas of activity (DAS), allocation of resources, competitive analysis | Targeting of customer segments, adaptation of offer, marketing campaigns |
| Use the criteria "who/what/how", matrix Abell | Based on socio-demographic, behavioural criteria |
| Impact on allocation of resourcesdiversification and strategic arbitration | Effect on marketing mix, communication or sales force |
Finally, strategic segmentation prepares the company for substantive choices: investing, dividing, abandoning or regrouping certain areas. Several trainings stress that it would be regrettable to confuse the two approaches – this blurs analysis and can hinder success.
Avoiding amalgam: an anecdote on the ground
In an industrial SME, the manager thought he would operate in marketing segments (types of customers, regions), without taking into account specific technologies or needs. As a result, two segments that were considered very different were competing on the ground... and the overall logic became undecided.
This error, which is quite widespread, sometimes costs a lot – "some officials regret not having consulted an expert earlier," said a former trainer.
It should be borne in mind that your marketing segments are not enough to manage major strategic arbitrations.
What steps can be taken to successfully segmentate?
To succeed in its strategic segmentation, it is better to have a rigorous method than a simple intuition. The top 5 SERP guides structure the process in precise steps, supported by downloadable matrices or tables: at Manager GO!, these are more than800 practical resourcesavailable per year for managers who want to apply the field approach immediately.
A training professional pointed out that the clarity of these steps really helps to avoid improvisation.
Step by step methodology
Sometimes we wonder where to start. Here are the steps that make consensus, according to different field consultants:
- ✅ List the main activities or trades of the company (sometimes a manager quotes forgotten trades after the fact)
- ✅ Cross criteria for finding homogeneous groups
- ✅ Grouping into distinct Strategic Activity Areas (SFAs)
- ✅ Evaluate each DAS: profitability, level of competition, concrete potential
- ✅ Validate in the field and update regularly (often every year or at an important event)
A reference tool: the DAS identification grid, frequently available in PDF format for download. Some managers simulate their own cutting on Excel or interactive matrices (a consultant recommends that they "test before deciding").
Simple application case
Imagine an IT service company: it can segment by "B2B cloud applications" (clients: companies, needs: security, technology: cloud) and "distance support" (customers: particulars, needs: support, technology: hotline). Each segment becomes a DAS to be piloted separately, which facilitates the adaptation of the strategy.
Another point is that this granularity makes it possible to concentrate investment on the cloud, where the margin and growth are much higher.
A field expert recently mentioned the concrete difference in performance in two distinctly managed segments – "growth is palpable as soon as one segment is well".
What are the typical mistakes to avoid?
Consultants and trainers, whether at Manager GO!, Cairn or via LinkedIn Learning, agree to identify recurring traps encountered during the strategic segmentation. These errors are documented in almost all of the fact sheets, they are at the source of significant declines in performance.
It can be assumed that these pitfalls return regularly, especially in the testimony of field managers.
Classic traps... and how to prevent them
As some experts say, "better is worth an imperfect segmentation than to multiply DAS or blur their role".
The main hazards to be addressed are:
- ✅ Over-segmentation: split too many DAS (more than 10 in an SME, it quickly becomes unmanageable)
- ✅ Marketing and strategic segmentation: this inevitably leads to distorted arbitrations
- ✅ Ignore competition: a DAS without a competitive analysis risks deadlocks
- ✅ Forget the update: when markets evolve, segmentation must follow – some field managers mention almost mandatory annual revisions
A final point to note: some policy makers do not prioritize their segments. As a result, resources are dispersed over non-perspective DAS, while the supporting sectors are neglected.
An outsourcing project manager reported how much this error can slow growth over two consecutive years.
What resources facilitate the process?
Strategic segmentation should not remain abstract: hundreds of guides, matrices and practical tables are accessible through Manager GO!, Cairn, and other platforms. These resources, often consulted by managers, allow to move forward without fear of "white page" or beginner errors.
A field worker recently reported efficiency gains through a memo sheet downloaded before the analysis phase.
Tools, fact sheets and guides to download
For example, you will find:
- ✅ Synthetic PDF sheets to address the Abell model and its criteria
- ✅ Interactive matrices, which some managers use to simulate their DAS
- ✅ Adapted sectoral examples SMEs, ETIs or international groups (several experts believe these models facilitate field adoption)
- ✅ Online courses, webinars or short videos to understand the step by step approach
Among the vague references: the book "Business strategy" at Cairn, or the portal Cairn Pro Gestion (380 € per year), are tools to deepen reflexivity and methodology. But it is generally found that most managers start with common free cards and get very well from them.
So, want to go further? Download a memo sheet or sign up for a webinar before starting the field analysis – this is often the best way to appropriate the process with a concrete case.
Checklist appropriation: ready to segment?
Before launching, it is best to check:
- ✅ Have you defined3 solid criteria(clients, needs, technologies) ?
- ✅ Is the number of DAS reasonable? (no more than 10,ideally 3 to 6 for an SME)
- ✅ Do you have a matrix to clearly visualize your segments?
- ✅ Can you justify your choices with a real competitive analysis?
If everything is validated, you can start the process without fearing the usual pitfalls – and prepare lucid arbitrations for your strategy. Several field consultants say that "the checklist really reduces bad surprises".
Additional resources to be consulted
– GO! Manager: guides and matrixes strategic segmentation
– Semji: analysis of SEO research intent
– SEOMix: segmentation of expectations and methods