Customer Segmentation is the process of dividing a broad customer base into smaller, more specific groups, or segments, based on shared characteristics, behaviors, or needs. This method allows businesses to tailor their marketing strategies, products, and services to meet the unique preferences of each segment more effectively. Common criteria for segmentation include demographics (age, gender, income), psychographics (lifestyle, values), geographic location, and behavioral factors (purchasing habits, brand loyalty). By understanding and targeting these distinct groups, companies can enhance customer satisfaction, increase efficiency in marketing efforts, and ultimately drive better business outcomes.
