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HomeGlossary
Customer segmentation

Customer segmentation

What is Customer segmentation?

Customer Segmentation: The practice of dividing a customer base into groups of individuals that are similar in specific ways

Introduction: Customer Segmentation is the process of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, spending habits, and so on. Segmentation allows companies to target different groups of customers with personalized campaigns designed to appeal to their specific needs and desires. This strategy enhances customer satisfaction and loyalty, improves service delivery, optimizes marketing efforts, and boosts sales and profitability. Effective customer segmentation is a key component of a comprehensive marketing strategy, enabling businesses to allocate their resources more efficiently and gain a competitive edge in the marketplace.

Strategies for Effective Customer Segmentation:

  • Demographic Segmentation: Based on age, gender, education level, income level, etc.
  • Geographic Segmentation: According to location, allowing for tailored marketing strategies that reflect local preferences.
  • Psychographic Segmentation: Involves grouping customers by personality traits, values, attitudes, interests, or lifestyles.
  • Behavioral Segmentation: Based on purchasing behavior, including patterns of use, price sensitivity, brand loyalty, and benefits sought.

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