Data-driven companies recognize the importance of tailoring their products to diverse user needs and preferences, which is where user segmentation plays a vital role. This process involves grouping users based on similar characteristics or behaviors to deliver more value and enhance product development. By focusing on behavior over characteristics, identifying blind spots in data, and articulating clear questions, companies can create meaningful segments that are mutually exclusive and collectively exhaustive (MECE). It is recommended to limit segments to a manageable number, typically between 3-8, to ensure they are both descriptive and actionable. Understanding the type and distribution of data, ensuring consistent behavior across metrics, and identifying tipping points in user engagement can further refine segmentation efforts. These strategies are crucial for companies aiming to become more data-driven and responsive to user needs.