What is Customer Segmentation?

About this Video

• Video Title: What is Customer Segmentation?
• Channel: Marketing Business Network
• Speakers: The transcript does not name the speaker.
• Duration: 00:03:45

Introduction

This video explains customer segmentation, a fundamental marketing concept. It details how dividing a broad market into smaller, more manageable subgroups based on shared characteristics allows for tailored marketing efforts that resonate better with specific customer needs and preferences.

Key Takeaways

• Definition of Customer Segmentation: The process of dividing a broad consumer or business market into subgroups based on shared characteristics (e.g., demographics, geography, psychographics, behavior).
• Importance of Customer Segmentation: Enables personalized marketing, improves customer retention, and leads to more efficient use of marketing resources.
• Four Primary Segmentation Types: Demographic (age, gender, income, etc.), Geographic (location, climate, etc.), Psychographic (lifestyle, personality, values, etc.), and Behavioral (purchasing habits, brand loyalty, etc.).
• Example of Customer Segmentation: A fitness equipment company using different segmentation types (demographic, geographic, psychographic, behavioral) to target various customer groups with specific marketing campaigns.
• Benefits of Effective Segmentation: More precise targeting, higher engagement rates, better customer satisfaction, and increased sales.