What are different types of Customer Segmentation?

There are several types of customer segmentation approaches used in market research, each providing different perspectives on the customer base.

Geographic Segmentation

Divides the market by location — countries, regions, cities, or neighbourhoods. Useful for businesses operating in multiple geographies or offering location-specific products.

Demographic Segmentation

Divides the market by measurable characteristics such as age, gender, income, occupation, education and family size. The most commonly used segmentation type.

Psychographic Segmentation

Divides the market by lifestyle, values, attitudes, interests and personality traits. Provides deeper insight into why customers buy.

Behavioural Segmentation

Divides the market by observable behaviours such as purchase history, product usage, brand loyalty and buying occasion.