Customer Segmentation Models

Customer segmentation models are tools businesses use to categorize their customers into distinct groups based on shared characteristics, behaviors, or preferences. By analyzing data such as purchasing habits, demographics, or interests, these models help companies better understand their audience. This allows for targeted marketing, personalized offers, and improved customer service, ultimately increasing satisfaction and loyalty. Think of it as sorting customers into different "buckets" so that each group can be treated in ways that best meet their specific needs. This strategic approach makes marketing efforts more effective and resource-efficient.