Bill Canady breaks down a two-tier segmentation framework that creates four quadrants of customers and products. Quad 1 is A-type customers buying high-value products, your core business to protect. Quad 4 is B-type customers with low-tier products, the low-value segment to deprioritize or cut.
Let's define Quad 4 precisely because it gets used loosely and loose definitions produce loose decisions. Segment your customers into A and B. A is the vital few at the very top. They're the ones we want to keep. B is everything else. You don't need C and D. It's either the ones you want, the ones you don't want. Segment your products the same way. Now you got 4 boxes. Quad 1 is A customers buying A products. That's your business. Protect it with everything you have. Quad 4 is B customers buying tell products, the bottom of your customer base buying bottom of your product line.
