Recently, data demand has grown explosively due to tremendous growth in cellular traffic. To meet the user's data requirement, Small cells (SCs) have been overlaid with existing macro cell (MC) leading to heterogeneity to the network. Although SCs enhances system throughput, to find the required number of SCs and energy efficiency of such network is of concern for vendors. Looking at the real‐world scenario of user's distribution in a geographical area, authors consider the SCs (eg, Picocells) deployment as uniform or cluster based (user‐density and k‐means). The work considers uniform deployment of SCs modeled as homogeneous Poisson Point Process (PPP) and user clusters are considered for user‐density‐based and k‐means‐based deployment. The locations for SCs is considered in the cell boundaries and hotspot regions where user density is highly consistent, huge gathering takes place, mobility is seldom and data demand is high such as at railway stations, shopping malls, working farms and organization, etc. The downlink performances in terms of average user throughput, system capacity and network energy efficiency for these three deployments of SC base‐stations in a heterogeneous network are explored. User distributions are modeled by adopting Cox process (also known as doubly stochastic poison process) and cluster process in the heterogeneous network operating area. It is observed that energy efficiency in terms of bps per watt decreases after a certain number of SCs for uniform and k‐means‐based deployment. The results show better performance for user‐density‐based SCs deployment compared to uniform and k‐means one.