What is Customer Segmentation?

A definition of Customer Segmentation

“Customer segmentation is the process of dividing a customer base into groups based on common characteristics to tailor marketing efforts effectively.”

Customer Segmentation in Business Glossary - What is a Customer Segmentation?

Business Glossary > What is Customer Segmentation?


Examples of Customer Segmentation in a Sentence:

Customer segmentation helps in creating targeted marketing strategies.

Effective customer segmentation can lead to increased customer satisfaction.

Our company uses customer segmentation to understand diverse customer needs.

Why is Customer Segmentation Important in Business?

Understanding customer segmentation allows businesses to craft personalized marketing strategies, enhancing customer satisfaction and loyalty. By identifying key customer characteristics, companies can efficiently allocate resources to maximize sales and growth.

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Associated Terms

Here are some associated business terms and synonyms for “Customer Segmentation”:

  • Market Segmentation
  • Audience Segmentation
  • Target Segmentation

Amazon Customer Segmentation

Amazon utilizes customer segmentation extensively to personalize recommendations, offering tailored shopping experiences. By analyzing customer behavior and preferences, Amazon optimizes product suggestions and marketing campaigns, which enhances customer satisfaction and boosts sales.

Final Notes on Customer Segmentation

Entrepreneurs should consider these aspects when applying customer segmentation:

  • Customer needs and preferences
  • Behavioral patterns
  • Demographic information
  • Geographic location

These insights will guide businesses in crafting effective marketing strategies and improving customer engagement.


This has been a definition of Customer Segmentation meaning.

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