Customer Segmentation
Customer segmentation is the process of dividing a customer base into distinct groups that share similar characteristics, behaviors, or needs. This categorization allows businesses to tailor their marketing strategies, products, and services to meet the specific demands of each segment more effectively. Segmentation can be based on various factors, including demographics (age, gender, income), psychographics (lifestyle, personality), geographic location, or behavior (purchase history, product usage). By understanding the differences among various customer segments, organizations can enhance customer experience, improve customer retention, and optimize marketing efforts to increase overall business performance.