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Dynamic segmentation is the practice of categorizing customers into distinct groups based on their changing behaviors, preferences, and needs.

Unlike static segmentation, which is based on fixed characteristics, dynamic segmentation adapts in real-time to evolving customer data. It utilizes advanced analytics and artificial intelligence to identify patterns and trends, allowing retailers to personalize marketing strategies, promotions, and product offerings for each segment.

By dynamically segmenting customers, retailers can deliver targeted and relevant experiences, improve customer satisfaction, and optimize their marketing efforts. This approach enables retailers to respond to shifting market dynamics, tailor their interactions with individual customers, and ultimately enhance customer loyalty and drive business growth.