How To Double Your Rates Using Value-Based Segmentation

Published: July 08, 2018

If you’ve ever wondered why some customers are willing to pay double for the same offer while others ghost you after hearing the price — this is the article that explains exactly how to handle that.

Well… there are lots of reasons, actually. But in this article, we’ll be tackling a marketing phenomenon known as ‘segmentation’.

And I’m not talking about useless segmentation like “man or women”… but way more actionable segmentation.

Aka: value-based segmentation.

This is the ONLY segmentation method that actually lets you charge more without changing your product, build more relevant messaging without hiring a branding agency, and design offers that practically pre-qualify the client for you.

Let’s go step by step, because this can completely change how you grow.

What Is Value-Based Segmentation?

Most segmentation advice out there is about demographics, firmographics, or general “customer types.” 

Stuff like “25–35 year olds with disposable income” or “tech founders with 5–10 employees.”

That kind of segmentation is easy to do. But also… kind of useless, I have to say.

It’s a start.

But those buckets don’t help you charge better prices. They don’t guide your sales calls. And they definitely don’t help you tailor your offer in a way that gets a yes faster.

Value-based segmentation, on the other hand, is built around why people buy and how much they value what you do. It’s grounded in real-world profitability and delivery efficiency — not just what customers ‘prefer’.

If you’re building your pricing, messaging, or offer without this lens… you’re leaving money and time on the table, trust me.

Step 1: Yes, Identify Basic Segments — But Don’t Stop There

I’m not a fan of long theoretical articles, so I’ll just quickly give you the steps you need to take. If you don’t actually implement this, then you’re wasting your time reading this.

That said…

Yes, you should still start with some basic filters. But this is JUST the beginning. We’ll build on it later

Look at your current client base. Group them by:

  • Company size: How many employees do they have?
  • Industry: What niche are they in?
  • Funnel source: Where do they get their traffic from, and how do they convert it?
  • Time to close: How long are the sales cycles?
  • Whether they’ve referred others: Do they sing your praises to other potential clients?

Right now, you’re just trying to get an overview. 

You’ll use this later to find the real differences: the ones that actually impact how much they’re willing to pay and how hard they are to serve.

Let me segment YOU… in the ‘owns my ebook’ segment.

In my free Startup Launch Roadmap, you’ll find everything you need to build your minimum viable product and start making sales quickly.

It’s a step-by-step guide designed to show you how to raise investments, build a product or service, launch it, and keep scaling as long as you want to.

If you’re an entrepreneur in ANY industry… you’ll find it really useful (plus it’s free!):

Step 2: Find the Real Value Drivers

Here’s where it gets good.

Start asking, segment by segment: 

What do they actually value most?

Speed? Personal attention? ROI? Done-for-you-ness? A long-term partner? Peace of mind? Prestige?

Talk to your best customers — the ones who don’t haggle, who stay for 6+ months, who refer. Ask questions like:

“What made you choose us over other options?”

“What almost stopped you from signing?”

“What result made you go, ‘This was worth it’?”

Patterns will start to emerge, and it will be much easier to improve your solution, as well as close more deals. 

Those are your value drivers — and they’re way more useful than anything a census or CRM export will show you.

You’ll notice some groups are price-sensitive, but super low-maintenance. 

Others are willing to pay a lot, but demand more. Both can be profitable — but only if you price, message, and serve them the right way.

Step 3: Audit Your Own Advantages

Okay, enough about the clients now. Let’s talk about YOU. Where do you win operationally?

Ask yourself:

  • What do we do better than competitors?
  • What types of clients are easiest (and cheapest) to serve?
  • Where do we deliver exceptional value without extra effort?
  • You want to match external value drivers with internal strengths. That’s the sweet spot.

Also — identify where you’re not strong. Founders sadly waste a lot of time trying to “win” segments that burn team hours and shrink margins. Justet them go.

Step 4: Build Segments That You Can Actually Use

Here’s the part most people screw up.

They segment so far that they can’t take any meaningful action. Don’t do that.

Only create a segment if you’re going to change your price, message, or offer.

That’s it. If it won’t lead to a different decision, group it with something else.

✅ Rule of thumb: Stick to 2–4 primary segments, and at most 2 subsegments each.

And yes — part of this means intentionally repelling segments you don’t want. That’s not just okay, it’s smart. Repelling the “wrong” group actually attracts the right one harder. It’s polarizing, and you’re forming a common “enemy”. It’s why cults were so powerful, and why personal brands are so hypnotizing today.

(minus the weird culty stuff, of course.)

Step 5: Describe Each Segment Like You’d Explain It to a Sales Rep

Once you’ve defined your segments, give them faces. Don’t just call them “Tier 1” or “Group A.”

Write short, human descriptions like:

“Fast-moving founders who want a turnkey growth engine and don’t care about marketing too much.”

“Mid-size agencies who care about systems, not leads — they want backend optimization and hand-holding.”

If your sales team (or future hires) can’t instantly imagine who that is, it’s not specific enough.

Step 6: Attach Metrics and Fences

Now we make this real.

Ask:

  • How much value does each segment receive?
  • What are the cost-to-serve differences?
  • What price level makes sense for each?
  • And just as importantly: How do we enforce it?

That’s where fences come in — the rules that separate segments in a way that feels fair. 

Here are a couple of examples of fences:

  • Time-based pricing (early-bird vs regular)
  • Service tiers (self-serve vs done-for-you)
  • Feature gates (premium tools for power users)

Set this up well, and you get a clean menu of options — each tailored to a different group’s value perception and willingness to pay.

Use Your Segments to Grow Smarter, Not Just Look Smart

Honestly, people often use segmentation as a “strategy theater” move. They don’t really use them practically.

Not here.

Here’s how real founders use segments:

Positioning

Tailor your entire brand and website to resonate with Segment A, while filtering out Segment B.

“If Segment A buys for speed and Segment B buys for ROI — don’t use the same headline for both.”

Pricing

Charge premium prices to high-value, low-cost segments. Repackage or unbundle for the frugal and price-sensitive people. 

If your lower-cost products help them grow, they might hire you for your premium offers one day.

Sales Messaging

Use testimonials that match the fears and desires of each group. Don’t pitch a security-focused CFO the same way you’d pitch a move-fast DTC founder.

Retention

Your onboarding, reporting, and success metrics should change depending on what each segment values most.

BONUS: Your 7-Day Segmentation Sprint (Founder’s Edition)

Here’s how to apply this system in one week:

Day 1–2:

List your top 10 clients. 

Look for patterns in revenue, retention, delivery effort, and sales cycle.

Day 3–4:

Interview 3 of them from each “pattern.” Ask:

“What result made this worth it for you?”

“What nearly made you walk away?”

“How would you describe what we do to a friend?”

Day 5:

Group your clients into 2–3 value-based segments. Focus on the why they bought, not who they are.

Day 6:

Compare each segment to your current offers. Are you over-delivering to low-value clients? Are your best segments getting your best pricing?

Day 7:

Update 1 thing — your landing page message, your pricing menu, or your sales pitch. Just 1.

Let the segments evolve as you grow, but don’t overthink it in the early days. You’re looking for strong enough signals to act — not a perfect framework to decorate your Notion dashboard.

Takeaways

If you’ve ever felt like your pricing, messaging, and sales were kind of ‘random’ — segmentation is how you bring structure (and profit) back into your business. It’s not the whole picture, but it definitely is an important piece of the puzzle…

… but only if you do it in a way that actually changes how you sell, price, and deliver:

  • Basic Segments: Start with easy filters like company size and industry — but don’t stop there. That’s just the start.
  • Value Drivers: Ask your best clients what really mattered to them. The patterns you hear are where the money is.
  • Operational Strengths: Match client value with what you can deliver profitably and easily. So find the middle ground between the client and yourself.
  • Actionable Segments: Only create a segment if it changes what you say or do. Otherwise, merge them.
  • Descriptions: Define your segments like you’re explaining them to a new hire. Make them human, not abstract.
  • Metrics & Fences: Set clear pricing logic and rules so people self-select into the right version of your offer.
  • Use Cases: Position, price, sell, and retain differently based on segment.
  • 7-Day Sprint: You can build and implement your first segmentation model this week. Just follow the plan.

Igor Levi

Founder

Product leader, entrepreneur, and data-driven strategist with a passion for AI, automation, and growth. With over 20 years in tech, he has built and scaled multiple B2B SaaS products, CRMs, ERPs, and Ad Tech platforms—leading teams through rapid growth, crises, and successful exits. He has held leadership roles at Billups, Outchart, and TUNE, navigating the fine balance between strategy, execution, and speed. Igor believes great products start with deep customer insight, clear decision-making, and smart automation.

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