Meaning & use

customer segmentation

noun·Advancedbusiness

Last updated

UK/ˈkʌstəmə ˌseɡmənˈteɪʃən/
US/ˈkʌstəmər ˌseɡmənˈteɪʃən/

Meanings

  1. noununcountablebusiness

    The practice of dividing a company's customers into groups that share similar needs, habits, or value.

    Grammar: No plural and no 'a' before it: customer segmentation is a way of working, not a single thing you can count.

    Patterns

    • customer segmentation by age
    • customer segmentation into groups
    • use customer segmentation
    • a customer segmentation strategy

    The marketing team used customer segmentation to send different offers to younger and older buyers.

    Good customer segmentation showed that most of the profit came from a small group of loyal shoppers.

    Without customer segmentation, the company wasted money advertising to people who would never buy.

  2. nouncountablebusiness

    The set of groups produced when customers are sorted in this way.

    Grammar: Used with a plural or 'a' when you mean the groups themselves: a segmentation, several segmentations.

    Patterns

    • a customer segmentation
    • several customer segmentations
    • the customer segmentation used by a company

    Their customer segmentation puts buyers into four groups: bargain hunters, loyal fans, occasional shoppers, and new users.

    The report compares two customer segmentations, one based on income and one based on shopping frequency.

Common combinations

customer segmentation strategy
A clear customer segmentation strategy helped the small shop compete with larger chains.
market segmentation
Market segmentation and customer segmentation are often discussed together in business classes.
carry out customer segmentation
The analysts carried out customer segmentation before designing the new app.
customer segmentation model
Their customer segmentation model groups people by how much they spend each year.
benefits of customer segmentation
The manager explained the benefits of customer segmentation to the sales team.

Synonyms and how they differ

market segmentation
Broader: it can split the whole market, including people who are not yet customers, while customer segmentation deals only with people who already buy.
customer profiling
Focuses on describing the typical buyer in detail rather than on dividing buyers into separate groups.
targeting
Comes after segmentation and means choosing which groups to aim at, so it is a later step, not the same idea.

Word family

segment verb
To divide something into separate parts.
segment noun
One of the parts into which something is divided.
segmentation noun
The general act of dividing something into parts, in any field.
segmented adjective
Divided into separate parts.

Commonly confused: customer segmentation or customer service? customer segmentation or market research?

customer segmentation vs customer service

Customer service means helping buyers with problems; customer segmentation is about sorting buyers into groups for marketing.

customer segmentation vs market research

Market research is the gathering of information about buyers; segmentation is what you do with that information to create groups.

Practice

The company used customer segmentation ______ its email list so that each group received a suitable offer.

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