Customer Segmentation Methods
Customer segmentation is the act of separating (segmenting) your target customers into different groups based on demographic or behavioral data so that marketing strategies can be tailored more specifically to each group. Being able to accurately segment a customer population is becoming increasingly important in today's digital world, where products and advertisements are created to target more and more specific subsets of the population. It is also an important part of allocating marketing resources properly because, by targeting specific customer groups, you can achieve higher return on investment for your marketing initiatives.
Every marketing group does some amount of customer segmentation. However, the methods they use to do this might not always be clear. These may be based on intuitions and hunches about certain demographic groups, or they might be the output of some marketing software, where the methods used are actually obscure. There are advantages...
