Customer Segmentation

Customer Segmentation is the process by which a company divides its customer base into homogeneous groups (segments). These groups consist of customers who exhibit similar characteristics, needs, or behaviors. The goal is to align marketing, sales, and service activities in a targeted and personalized manner with these segments to increase effectiveness.

Typical segmentation criteria include:

• Demographic (age, gender, income)
• Geographic (region, country, city)
• Psychographic (values, lifestyle)
• Behavioral (purchase behavior, brand loyalty, usage intensity)

Goals

• Personalized Approach: Customers receive relevant content and offers.
• Efficient Resource Utilization: Marketing budgets are used strategically.
• Improved Customer Experience: Products and services are tailored to the needs of the segments.
• Increased Revenue and Customer Loyalty: Tailored offers boost conversion rates and loyalty.