Segmentation by product usage involves dividing a market based on how consumers use a product. This technique helps marketers understand the different ways their products are utilized and tailor their strategies accordingly. By identifying heavy, medium, and light users, as well as non-users, businesses can create more effective marketing campaigns and improve customer satisfaction.

1. Usage Rate: The frequency with which a consumer uses a product.
2. User Status: Categories such as non-users, ex-users, potential users, first-time users, and regular users.
3. Usage Occasion: The specific situations or times when a product is used.

• Targeted Marketing: Allows for the creation of tailored marketing messages for different user groups.
• Resource Allocation: Helps in allocating resources more efficiently by focusing on high-value segments.
• Product Development: Provides insights into how products are used, guiding future product development and improvements.

Dividing the market based on how frequently consumers use the product.

• Heavy Users: Consumers who use the product frequently.
• Medium Users: Consumers who use the product occasionally.
• Light Users: Consumers who use the product infrequently.

Classifying consumers based on their relationship with the product.

• Non-users: Individuals who do not use the product.
• Ex-users: Individuals who have used the product in the past but no longer do.
• Potential Users: Individuals who have not used the product but may do so in the future.
• First-time Users: Individuals who are using the product for the first time.
• Regular Users: Individuals who use the product consistently.

Segmenting the market based on the specific occasions when the product is used.

• Daily Use: Products used as part of a daily routine.
• Special Occasions: Products used during specific events or celebrations.
• Seasonal Use: Products used during particular seasons or times of the year.

• Heavy Users: Individuals who drink soda multiple times a day.
• Medium Users: Individuals who drink soda a few times a week.
• Light Users: Individuals who drink soda occasionally, such as during parties or special events.

• Non-users: Individuals who have never used the software.
• Ex-users: Individuals who used the software but switched to a competitor.
• Potential Users: Individuals who are considering using the software.
• First-time Users: Individuals who have just started using the software.
• Regular Users: Individuals who use the software daily for their work.

1. Objective: Identify different usage segments for a fitness app.
2. Steps:
   • Collect data on app usage frequency.
   • Classify users into heavy, medium, and light users.
   • Identify non-users, ex-users, potential users, first-time users, and regular users.
   • Determine the occasions when the app is used (e.g., daily workouts, special fitness challenges, seasonal fitness goals).

1. Data Collection: Use app analytics to gather data on user activity.
2. Classification:
   • Heavy Users: Users who log workouts daily.
   • Medium Users: Users who log workouts a few times a week.
   • Light Users: Users who log workouts occasionally.
   • Non-users: Registered users who have never logged a workout.
   • Ex-users: Users who logged workouts in the past but have stopped.
   • Potential Users: Individuals who have downloaded the app but have not yet logged a workout.
   • First-time Users: Users who have logged their first workout recently.
   • Regular Users: Users who consistently log workouts over an extended period.
3. Usage Occasions:
   • Daily Workouts: Users who use the app as part of their daily fitness routine.
   • Special Fitness Challenges: Users who participate in app-hosted fitness challenges.
   • Seasonal Fitness Goals: Users who use the app to achieve specific fitness goals during certain times of the year (e.g., New Year’s resolutions, summer body goals).

Segmentation by product usage is a powerful technique that allows businesses to understand and cater to the diverse ways their products are used. By identifying different usage rates, user statuses, and usage occasions, marketers can create more personalized and effective marketing strategies. This approach not only enhances customer satisfaction but also optimizes resource allocation and guides product development.

In the next module, we will explore the tools and analysis methods used in audience segmentation, including how to leverage Google Analytics and CRM systems for effective segmentation.