Customer Segmentation

Customer / Market Segmentation

Customer segmentation is critical and challenging. Understanding and quantifying your current customer base is the starting point for any successful segmentation.

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This step in the process requires decision makers to analyze the customer data.

You need to define your current and relevant customer segments and quantify the segment size – number of customers as well as your current revenues for each relevant segment.

Consumer Segmentation (B2C)

  • Demographic Segmentation – age, gender, sex, social class, income, education
  • Geographic Segmentation – region, country, city, zip code, climate
  • Psychographic Segmentation – lifestyle, attitude, activities, interest, personality
  • Behavioral Segmentation – loyalty, product preference, price perception

Business Segmentation (B2B)

  • company size
  • ownership type
  • industry
  • relationship
  • value chain position
  • frequency of purchase
  • average order size
  • location
  • product use
  • annual budget
  • financial strength

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