Dividing customers into meaningful groups for targeted strategies
Customer segmentation groups customers by shared characteristics (demographics, behavior, needs, value) to enable targeted marketing, product development, and pricing strategies. Moving from one-size-fits-all to segment-specific approaches typically increases conversion by 200-300%. Modern segmentation goes beyond demographics to behavioral patterns (RFM analysis), needs-based segments (jobs-to-be-done), and predictive segments using machine learning.