Customer Segmentation
Customer segmentation is the division of customers into smaller groups according to adopted criteria in order to tailor the sales proposal as accurately as possible to their needs and expectations.
Among the adopted criteria are:
age
gender
education
financial situation
goals for acquiring the product or service
social class
lifestyle
personality traits
geographic region (place of residence, work)
Benefits of customer segmentation
More personalized messages directed to customers
More efficient customer management (division into smaller groups enables better product matching to their requirements and expectations)
Higher quality customer service
Adjusting activities based on the profitability of given segments
Faster reach to the most profitable customer groups
Ability to quickly react to changes occurring in the market