What is customer segmentation

Customer segmentation is the process of dividing a customer base into distinct groups based on shared characteristics or behaviors.

How does customer segmentation work

Marketers use demographic, behavioral, psychographic, or transactional data to create segments for targeted campaigns.

Types of customer segmentation:

• Demographic
• Behavioral
• Value-based
• Lifecycle segmentation

How to measure customer segmentation:

Segment performance metrics like conversion rate, open rate, CLTV per segment

Why is customer segmentation important to marketers?

Segmentation enables personalization, improves targeting efficiency, and maximizes ROI on campaigns.

Who needs to know about customer segmentation?

• Email marketers
• Data analysts
• Campaign managers

Use customer segmentation in a sentence:

Customer segmentation allowed us to send more personalized email content, increasing engagement by 2x.