Unit Economics by Segment

Aggregate hides segment-level differences. Segmentation, analysis, action.

Why segment-level economics

Aggregate unit economics hide segment-level differences. Some segments are sustainable; others destroy capital. Mature programs measure unit economics by segment.

Segmentation

• By customer size (SMB, mid-market, enterprise).
• By industry vertical.
• By geography.
• By acquisition source.
• By product line.
• By customer behavior cohort.

Analysis

• CAC per segment.
• LTV per segment.
• Payback per segment.
• Retention curves.
• Expansion rates.
• Cost-to-serve.

Action

• Reallocate acquisition spend by segment ROI.
• Exit unsustainable segments.
• Differentiated offerings for high-LTV.
• Pricing differentiation.
• Customer success allocation.

Advanced playbook

• Segment-level unit economics dashboard.
• Annual segment review.
• Cohort retention by segment.
• Expansion rate by segment.
• Cost-to-serve by segment.
• Acquisition spend rebalancing.
• Exit-strategy for negative segments.
• Differentiated offerings.
• Pricing differentiation.
• CS allocation aligned with LTV.

Mistakes

• Aggregate-only unit economics.
• Segment-level dashboard missing.
• Annual segment review skipped.
• Cohort retention not by segment.
• Expansion not measured.
• Cost-to-serve unknown.
• Acquisition spend not rebalanced.
• Negative segments persist.
• Differentiated offerings absent.
• CS allocation uniform.

Checklist

• Segment-level unit economics dashboard
• Annual segment review
• Cohort retention by segment
• Expansion rate by segment
• Cost-to-serve by segment
• Acquisition spend rebalancing
• Exit-strategy for negative segments
• Differentiated offerings
• Pricing differentiation
• CS allocation aligned with LTV

Part of the Marketing Finance series.