Segmentation – How to improve customer segmentation

Before delving into customer segmentation , it's important to understand the difference between market and customer segmentation . Market segmentation involves dividing a larger market into smaller groups of customers who share similar needs or characteristics. A market segment refers to a subset of customers within a larger target market who possess common characteristics or behavior patterns that distinguish them from other customers. In other words, a market segment is a group of customers or businesses that share similar needs, preferences, or interests, and who are likely to respond in a similar way to marketing messages and promotions. Market segmentation is a crucial tool that helps businesses gain a comprehensive understanding of their target audience as a whole, with the ultimate goal of gaining insights into the overall market and its segments. This allows companies to connect with and create targeted and effective...