customer-segmentation

Vocabulary Word

Definition

'Customer segmentation' is a marketing strategy where a large customer base is divided into smaller groups with similar traits like age, behavior, interests, etc. This helps businesses customize their offerings according to different group's needs.

Examples in Different Contexts

In product development, 'customer segmentation' helps in designing products that cater to the preferences of specific segments of the market. A product developer might state, 'Customer segmentation informs our product design process, ensuring we create products that appeal to our target segments.'

Practice Scenarios

Business

Scenario:

We are recognizing an increase in younger shoppers. Perhaps, it's time we change our strategy to engage them effectively.

Response:

Agreed, perhaps a customer segmentation analysis could provide a better understanding of their preferences.

Tech

Scenario:

Our website visits have spiked after the new updates. Let's analyze the user behavior for better insights.

Response:

That sounds great. Implementing customer segmentation could boost conversions by tailoring content to user behavior.