customer-segmentation-models

Vocabulary Word

Definition

'Customer segmentation models' are methods businesses use to split their customers into groups. These groups may be based on characteristics like their needs, methods of purchase, or location.

Examples in Different Contexts

Psychographic segmentation, a 'customer segmentation model', separates customers based on their lifestyle, interests, attitudes, and values. A brand manager might explain, 'Using psychographic segmentation, we can create highly targeted advertising that speaks directly to the values and interests of our audience.'

Practice Scenarios

E-commerce

Scenario:

The return on investment for our website has been rather low recently. We need to find ways to boost user interactions.

Response:

Good point. I suggest implementing new customer segmentation models to personalize product recommendations, which could increase engagement.

Telecommunications

Scenario:

We need to increase our market share among college students. They're a significant demographic that we haven't fully tapped into.

Response:

That makes sense. Let's improve our customer segmentation model to better understand student needs and tailor our packages accordingly.