Market segmentation is the process of dividing your broader market into smaller, more defined groups based on shared characteristics, needs, or behaviors. Instead of treating all potential customers the same way, you recognize that different groups have different priorities, pain points, and decision-making processes.

You should care because it makes everything in your business more effective. Your marketing messages become more relevant when they speak to specific needs. Your product development gets focused on solving real problems for real people. Your sales team can have more targeted conversations that actually address what prospects care about.

Without segmentation, you're essentially shooting in the dark. You might hit some targets, but you'll waste a lot of resources and miss opportunities to serve specific groups exceptionally well.