The Customer Segments Building Block defi nes the diΩerent groups of people or organizations an enterprise aims to reach and serve Customers comprise the heart of any business model. Without (profi table) customers, no company can survive for long. In order to better satisfy customers, a company may group them into distinct segments with common needs, common behaviors, or other attributes. A business model may defi ne one or several large or small Customer Segments. An organization must make a conscious decision about which segments to serve and which segments to ignore. Once this decision is made, a business model can be carefully designed around a strong understanding of specifi c customer needs. Customer groups represent separate segments if: • Their needs require and justify a distinct oΩer • They are reached through diΩerent Distribution Channels • They require diΩerent types of relationships • They have substantially diΩerent profi tabilities • They are willing to pay for diΩerent aspects of the oΩer Customer Segments CS 1 bmgen_final.indd 20 6/15/10 5:32 PM