Segmentation is a marketing strategy that involves dividing a broad target market into subsets with common needs for more efficient targeting.


Segmentation is a process used in marketing and business strategy that involves dividing a broad target market into subsets of consumers, businesses, or countries. These segments have common needs, interests, and priorities and can be understood and reached more efficiently. The goal of segmentation is to identify and understand target audiences so that businesses can tailor their products, services, and marketing efforts to meet the specific needs of those segments. Effective segmentation can lead to a more personalized customer experience, which is crucial as studies show that 80% of consumers are more likely to purchase from brands that provide personalized experiences.

Usage and Context

Segmentation is used across various fields, but it is most commonly associated with marketing. In marketing, segmentation helps businesses to target their products or services to the right customers. It enables marketers to understand the needs and behaviors of their target audience, which can lead to more effective marketing strategies. Segmentation can be based on various factors like demographics, psychographics, behavior, and geography. For instance, Customerly's live chat features can be used to engage with different customer segments in real-time, providing tailored support and enhancing the overall customer experience.

Frequently Asked Questions

What are the types of segmentation?

There are four primary types of market segmentation: demographic, geographic, psychographic, and behavioral. Demographic segmentation divides the market based on demographic variables like age, gender, income, etc. Geographic segmentation divides the market based on geographical boundaries. Psychographic segmentation divides the market based on lifestyle, personality traits, and attitudes. Behavioral segmentation divides the market based on consumer behavior, usage patterns, and decision-making processes.

Why is segmentation important?

Segmentation is important because it allows businesses to target specific groups of customers and meet their needs more effectively. It helps in understanding customer behavior, preferences, and needs. This understanding allows businesses to develop products and services that meet the specific needs of different segments, leading to increased customer satisfaction and loyalty. According to Customerly's blog, customer satisfaction metrics such as CSAT can be significantly improved through effective segmentation strategies.

Related Software

Segmentation software includes tools like HubSpot, Marketo, and Salesforce. These tools help businesses in segmenting their customers based on various factors and enable them to target their marketing efforts effectively. Additionally, Customerly's customer satisfaction software can be integrated to track the satisfaction levels of different customer segments over time.


Segmentation offers numerous benefits. It helps businesses to understand their customers better, develop targeted marketing strategies, improve customer service, increase sales and profitability, and enhance customer loyalty. It also enables businesses to differentiate themselves from their competitors by offering products or services tailored to the specific needs of their target segments. For example, using Customerly's in-app surveys, businesses can gather feedback from different segments to refine their product offerings.


In conclusion, segmentation is a powerful tool that businesses can use to understand their customers better and meet their needs more effectively. It enables businesses to target their products and services to the right customers, leading to increased customer satisfaction and loyalty. With the rise of data-driven marketing and the availability of advanced segmentation tools, businesses can leverage segmentation to gain a competitive edge and drive growth.

Related Terms

CSAT (Customer Satisfaction)

CSAT (Customer Satisfaction) is a key performance indicator that measures the satisfaction level of customers with a company's products or services.

Customer Loyalty

Customer loyalty refers to the likelihood of repeat customers choosing a specific brand or company over its competitors. It is beneficial for business growth and profitability.

Customer Loyalty Analyst

A Customer Loyalty Analyst is a professional who interprets customer data to understand factors influencing loyalty, aiming to develop strategies that increase customer retention.

Customer Loyalty Consultant

A Customer Loyalty Consultant is a professional who helps businesses improve customer retention and satisfaction, ultimately increasing revenue.

Customer Loyalty Director

A Customer Loyalty Director is responsible for developing and implementing strategies to improve customer loyalty and retention.

Customer Loyalty Manager

A Customer Loyalty Manager is a professional who manages customer retention and loyalty strategies to ensure customer satisfaction and boost business profitability.

Customer Loyalty Specialist

A Customer Loyalty Specialist is a professional focused on maintaining and enhancing a company's relationship with its customers to increase customer satisfaction, retention, and loyalty.

Customer Loyalty Strategist

A Customer Loyalty Strategist is a professional who develops strategies to foster customer loyalty, leading to increased business profits and growth.

Customer Satisfaction Analyst

A Customer Satisfaction Analyst is a professional responsible for analyzing customer feedback to improve satisfaction levels.

Customer Satisfaction Coordinator

A Customer Satisfaction Coordinator is a professional who ensures customer satisfaction with a company's products or services.

Customer Satisfaction Director

A Customer Satisfaction Director is a high-level executive who oversees customer service activities, develops customer service policies, and measures customer satisfaction.

Customer Satisfaction Executive

A Customer Satisfaction Executive is responsible for ensuring outstanding service and support to customers, aiming to increase customer satisfaction, loyalty, and retention.

Customer Satisfaction Manager

A Customer Satisfaction Manager is a critical role in businesses, responsible for improving customer service and satisfaction.

Customer Satisfaction Metrics

Customer Satisfaction Metrics are quantitative measures used to assess the level of customer satisfaction with a company's products or services.

Customer Satisfaction Research Director

A Customer Satisfaction Research Director oversees research activities aimed at understanding customer satisfaction levels, helping businesses improve their customer relationship strategies.

Customer Satisfaction Researcher

A Customer Satisfaction Researcher is a professional who conducts research to understand and improve a company's customer satisfaction.

Customer Satisfaction Specialist

A Customer Satisfaction Specialist is a professional who ensures customer needs are met, handles queries, and works towards improving customer satisfaction.

Customer Satisfaction Strategist

A Customer Satisfaction Strategist is a professional who develops strategies to improve customer satisfaction, enhance customer experience, and drive business growth.

Customer Satisfaction Survey Analyst

A Customer Satisfaction Survey Analyst designs and implements surveys to gauge customer satisfaction. They analyze results to help companies improve.

Digital Marketing Strategy

A Digital Marketing Strategy is a plan that outlines how a business will achieve its marketing goals through online channels.

Marketing Strategy

A marketing strategy is a comprehensive plan that outlines a company's marketing efforts to achieve specific goals and objectives.

Target Market

A target market refers to a specific group of potential customers that a business aims to reach with its products, services, and marketing efforts.
Live Chat Messenger Chat Details
Live Chat Messenger Conversation History

AI Support That Sets You Apart — Start Leading Today.

Some of the businesses that choose Customerly
  • appinstitute
  • epayco
  • cookie-script
  • nibol
  • paykickstart
  • njlitics
  • paymo
  • startupgeeks
  • tweethunter
  • tedx
  • appinstitute
  • epayco
  • cookie-script
  • nibol
  • paykickstart
  • njlitics
  • paymo
  • startupgeeks
  • tweethunter
  • tedx