What is segmentation in customer analysis?
Data Management

Customer Segmentation Analysis: Analysis Models & Methods

Customer Segmentation Analysis helps you segregate your customers according to their preferences and demographics. It helps you understand your customer's pain points and deliver the required solutions. Go through this blog to develop a complete understanding of customer segmentation and its implementation.



richa img Richa Bhardwaj

Date Published: 28th Feb 2024

Reviewed By:

Sameer_pawar Sameer Pawar

19 min read


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Richa Bhardwaj
Digital Content Creator
Richa Bhardwaj is an accomplished writer with appreciable skills and experience. She holds proficiency in delivering diverse and high-end content across dynamic industries, including IT and Digital Marketing. She is also a bibliophile who enjoys literature and has a flair for technical and creative writing.

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Segmentation in customer analysis is the process of dividing a customer base into distinct groups based on shared characteristics or behaviors to better understand and target them effectively.

The 5 steps in customer segmentation analysis are: Data Collection: Gather relevant data about customers. Segmentation Variables Selection: Choose criteria for segmenting customers. Segmentation Analysis: Analyze data to identify distinct customer segments. Segment Profiling: Create profiles for each segment based on characteristics. Strategy Implementation: Develop tailored marketing strategies for each segment.

The main customer segments vary depending on the business and industry but commonly include demographic, psychographic, behavioral, geographic, and firmographic segments.

Customer segmentation is used to: Tailor marketing efforts to specific customer groups. Improve product/service offerings based on segment needs. Enhance customer engagement and satisfaction. Optimize resource allocation by focusing on high-potential segments. Increase overall sales and profitability through targeted approaches.

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