Consumer Segmentation

Consumer segmentation is the process of dividing a broad group of potential customers into smaller, distinct groups based on common characteristics. This allows companies to tailor their marketing efforts, products, and services to better meet the specific needs and preferences of each group. Segmentation factors can include demographics (age, income), behaviors (buying habits), geographic location, or lifestyle. By understanding these segments, businesses can be more effective in reaching their target audiences, increasing customer satisfaction, and improving sales. Essentially, it’s about recognizing that not all customers are the same and customizing approaches to serve different groups better.