What is Customer Segmentation?
Customer Segmentation is the practice of dividing a market or customer base into distinct groups based on shared characteristics like behavior, demographics, or needs, allowing for targeted marketing and personalized communication.
Table of Contents
Full Definition
Segmentation improves marketing relevance and effectiveness.
Common bases include demographics, psychographics, purchase history, and engagement level.
It enables personalized offers and messaging that resonate with each segment.
Examples
Behavior-based segmentation
Demographic targeting
Value-based groups
Benefits
Over-segmentation leading to complexity
Using irrelevant segmentation criteria
Failure to update segments over time
Common Mistakes
Focus on actionable and meaningful segments.
Regularly review and refine segments based on data.
Conclusion
Effective segmentation enhances customer engagement and marketing ROI.