What is meant by customer segmentation?

Customer segmentation is how businesses divide their audience into smaller subsets or different groups of customers, based on common characteristics like demographics, psychographics and behavior.

What is customer segmentation and why is it important?

Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways. Other benefits of customer segmentation include staying a step ahead of the competition and identifying new products that existing or potential customers could be interested in.

How do you write a customer segmentation?

To create a customer segmentation strategy, you first need to determine your team’s goals….Customer Segmentation Strategy

1. Determine your customer segmentation goals.
2. Segment your customers into groups of your choice.
3. Target and reach your customer segments.
4. Run customer segmentation analysis.

What are types of customer segments?

Types of Consumer Segmentation

• Demographic & Socioeconomic Segmentation.
• Geographic Segmentation.
• Behavioural Segmentation.
• Psychographic Segmentation.
• Social Media Segmentation.

What are the different types of customer segments?

How is customer segmentation used?

Segmenting allows you to more precisely reach a customer or prospect based on their specific needs and wants. Segmentation will allow you to: Better identify your most valuable customer segments. Improve your return on marketing investment by only targeting those likely to be your best customers.

How do you create customer segmentation?

When determining how to segment your customers, start by working through the following strategy.

1. Determine your customer segmentation goals.
2. Segment your customers into groups of your choice.
3. Target and reach your customer segments.
4. Run customer segmentation analysis.