Customer segmentation describes the process of categorizing a diverse customer base into distinct groups based on shared characteristics and behaviors. This analysis enables retailers to better understand and target specific customer segments with tailored marketing strategies and personalized experiences. Segmentation variables may include demographics, psychographics, purchase history, or shopping preferences.
Customer segmentation is based on criteria such as age, gender, income level, geographical location, interests, purchasing habits, preferences and other relevant variables.
By analyzing this data, retailers can identify distinct customer segments and adapt their offers accordingly.
