What is Customer Segmentation? | Spitche Glossary

Customer segmentation involves categorizing a company’s customer base into distinct groups based on shared characteristics such as demographics, behavior, and purchasing patterns. This strategy allows businesses to tailor their marketing efforts and products to meet the specific needs and preferences of each segment, enhancing customer satisfaction and loyalty. Example: An apparel retailer divides its customers into segments such as “Young Adults,” “Athletes,” and “Professional Workwear” to target marketing campaigns more effectively.