Customer Segmentation
Customer segmentation is the process of grouping your customer base into different categories based on shared attributes, behaviors, or needs. These groups or segments allow you to market, product, and service to specific customer needs improve customer experience, and increase sales. Segmentation is key because it helps you focus on the most profitable customer groups, and create personalized messaging and resource allocation.
Recommended resources
Courses
Introduction to Product Management
Churn Busting
Introduction to Design Audits
Product Discovery
Government Design Foundations
Cross-Functional Design & Product Teams
Product Analytics
User Psychology
Design Thinking
Enhancing UX workflow with AI
Workshop Facilitation
Information Architecture
Service Design
UX Research
FAQs
What are the most common segmentation criteria?
The different types of segmentation are demographic (age, gender, income), geographic (location-based), psychographic (lifestyle, values) and behavioral (purchase behavior, brand loyalty). Each type helps to understand different aspects of customer needs.
Why is segmentation important?
Segmentation helps you understand your audience better and to cater to their needs. It allows for better marketing, personalized products and services higher customer satisfaction, loyalty, and ultimately more revenue.
How do I segment my customers?
To segment your customers you can start by gathering data on your customers through surveys, website analytics, social media insights, and purchase history. Then use that data to identify patterns and group your customers. Once you have your segments you can create targeted marketing campaigns and product offerings for each group.