What is customer segmentation?
Customer segmentation divides your customer or market data into smaller, more meaningful groups based on shared characteristics. These could be behaviour, demographics, location, purchase history or where a person is in your customer journey.
The value of segmenting data in businesses
Segmentation isn’t just about improving your email marketing (though it certainly helps with that). It supports better decision-making across your business, from product development and sales strategies to inventory management and pricing.
Types of customer segmentation
There are several types of segmentation, and each approach helps you see your data and customers in a new light. Using real-world examples, this guide explains how product, operational, journey stage and customer vs market segmentation serve different business goals.
Key stages of customer segmentation
While segmentation can be complex, it generally involves setting your goals, organising your data, defining your segments, implementing strategies, and measuring and refining them over time. We break down each stage and offer practical guidance on what it looks like in action, including how to handle imperfect data and when to seek external support.
Empower growth with customer segmentation
At its core, segmentation is a way to scale smarter. It helps you make better use of your existing resources and target the people who bring the most value to your business. When markets shift (which they often do), segmentation will be what keeps you agile, allowing you to adapt quickly.
FURTHER READING
Ways Customer Analytics Amplify Marketing Strategies
Fantastic Customers and Where to Find Them
4 Components of a Great Customer Retention Strategy
COMPANIES WE HAVE DESIGNED SEGMENTATION SOLUTIONS FOR:
