Undersegmenters

Undersegmenters is a term used in marketing and product management to describe actors, analyses, or outcomes concerned with under-segmentation—the situation in which a market is segmented too coarsely to reflect meaningful differences among customers.

The term is not standardized; it can refer to (1) practitioners who advocate or implement finer segmentation (micro-segmentation), (2) analytic results that reveal a lack of granularity in existing segments, or (3) strategic recommendations to expand segment definitions.

Why it matters: When segments are too broad, messaging may be generic, product features may not fit diverse needs, and opportunities for differentiated positioning are missed. Addressing under-segmentation aims to uncover underserved subgroups and tailor strategies accordingly.

Methods used to identify under-segmentation include cluster analyses with varying numbers of clusters, evaluation metrics like silhouette scores, segmentation audits, ethnographic research, and customer journey mapping. These tools help assess whether current segments capture distinct needs, behaviors, and contexts.

Approaches to address include incorporating psychographic and behavioral variables, context-aware and needs-based segmentation, dynamic or multi-layer targeting, personalized messaging, and iterative testing to validate segment relevance and ROI.

Limitations and criticisms: there is a risk of over-segmentation, higher costs, data-privacy concerns, and diminishing returns if segments become too small or unstable for practical implementation.

See also: market segmentation, micro-segmentation, customer segmentation, data-driven marketing.