Step 5: Segment Unit Economics

Not all customers are equal — don't treat them like they are. Break down LTV, CAC, service costs, and support burden by customer segment to see which groups are profitable and which are quietly draining resources.

Why This Matters

Your aggregate unit economics might look fine, but averages lie. Some customers subsidize others, and if you don’t know which is which, your ops team may scale inefficiencies or chase the wrong segments. At Series A, clarity on margins by segment drives smarter GTM, pricing, and support strategies.

Key Activities

Segment customers by relevant dimensions (e.g., SMB vs. enterprise, industry, behavior)
For each segment, calculate:
LTV
CAC
Onboarding/support cost
Retention and expansion rates
Identify which segments are profitable vs. margin-draining
Use insights to guide GTM focus, pricing, and ops investments

Common Mistakes

Only calculating blended CAC or LTV
Assuming all customers require the same support or infra
Not segmenting by behavior or usage (e.g., self-serve vs. high-touch)
Using anecdotal feedback to shape strategy instead of economics
Waiting until Series B diligence to figure this out

Signals You're Doing It Right

You know which segments have the healthiest margins
Sales and marketing efforts are focused on profitable segments
Support staffing aligns with customer value
Product roadmap prioritizes features that serve high-LTV segments
You're confident in your pricing strategy and expansion model

Red Flags

You can’t compare CAC or LTV by segment
Support or infra costs feel bloated but no one knows why
“Power users” are dragging margins down instead of lifting them
Sales is pushing for high-touch segments that don't pay off
GTM decisions are based on volume, not value

Who Should Own This

Finance Lead, Growth Lead, and Ops Lead (collaboratively)