Customer Segmentation is the process of dividing customers into groups based on shared characteristics. It enables businesses to tailor their products, services and marketing messages to specific groups rather than treating all customers as a single homogeneous group.
Common segmentation variables include:
- Geographic: Country, region, city, climate
- Demographic: Age, gender, income, occupation, education
- Psychographic: Lifestyle, values, personality, interests
- Behavioural: Purchase history, usage rate, brand loyalty, occasion
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