One of the first things you will realize as an entrepreneur is that you will need to be absolutely clear about your customer’s problems and envision your product solving their most important pain point. This realization results in an appreciation for the “micro” problem for a “small set of customers” to begin with. That in essence is customer segmentation.The discipline of finding the factors that differentiate one set of your potential customers from another based on a set of characteristics.
First, segmentation is a discipline. The output of that discipline is
a) a way to make it easier to identify your customers via a known name or persona
b) a means to target them more effectively and
c) a language to explain their problems / pain points and
d) an ontology to express your solution to help them solve the problem.
Second, you will have to find factors that help you differentiate customers.