Customer Segmentation breaks down a company’s customer base into groups in order to identify trends. This can be done using demographics (e.g., age, gender), psychographics (e.g. opinions, behaviors), engagement (how they interact with marketing material), goals (the most popular products or services in companies with multiple offerings), and other information relevant to the specific seller or industry. The benefits of Customer Segmentation include the ability to personalize communications, upselling and cross-selling, higher return on marketing investment (ROI), and Conversion Rate Optimization (CRO).
