Customer Segmentation
Customer segmentation is the process of dividing a customer base into distinct groups that share similar characteristics. This allows businesses to tailor their marketing, sales, and product development efforts to resonate better with each group.
Think of it like this: Instead of shouting the same message to everyone in a crowded room, you can segment the crowd by interest and speak directly to each group. It's a more focused and effective approach.
8 Types of Customer Segmentation
There are various ways to segment your customers, here are eight common approaches:
1.Demographic Segmentation: This groups customers based on basic characteristics like age, gender, income, education level, and family size.
2.Geographic Segmentation: This segments customers by location, such as country, region, city, or zip code.
3.Behavioural Segmentation: This segments customers based on their purchase history, buying habits, product usage, and website interactions.
4.Value-based Segmentation: This groups customers based on the value they bring to the business, such as high-spending customers or churn-risk customers.
5.Needs-based Segmentation: This groups customers based on their specific needs and problems that your product or service can solve.
6.Technographic Segmentation: This segments customers based on the technology they use, such as the devices they own and the software they use.
7.Psychographic Segmentation: This groups customers based on personality traits, interests, values, lifestyles, and attitudes.
8.Lifecycle Stage Segmentation: This segments customers based on their stage in the customer journey, such as awareness, consideration, purchase, retention, or churn.
