What is Customer Segmentation? 

What is Customer Segmentation ?

customer segmentation is dividing the customers effectively, based on their factors such as age, need, industry type or buying features.

Types of Customer Segmentation


Demographic segmentation 

Dividing consumers based on age, race, gender, marital status, income, etc. It saves time, improves customer retention, but may lead to limited production and increased costs. 

Types of Customer Segmentation 

Behavioral segmentation 

Dividing customers based on their interactions with the company. Enables efficient use of resources and predicts customer behavior, but may not be preferred by marketers due to changing behavior and limited coverage. 


Types of Customer Segmentation 

Geographical segmentation 

Dividing customers based on location, such as city, country, or region. Helps identify customer needs, but can be risky due to changing weather patterns and may not consider buying behavior. 


Types of Customer Segmentation 

Psychographic segmentation 

Grouping customers based on beliefs, lifestyle, interests, etc. Offers customization and satisfies customer preferences, but can be difficult to implement and limited in potential consumers. 


Benefits of Customer Segmentation 

Customer segmentation allows for better market strategies, efficient resource utilization, and a deeper understanding of consumer needs, leading to increased sales and credibility.