4 Types of Customer Segmentation

Priya Bawa

She has started her career as a Content Writer and writes on blogs related to career.

Free Demo Classes

Register here for Free Demo Classes

Please fill the name
Please enter only 10 digit mobile number
Please select course
Please fill the email
Something went wrong!
Download App & Start Learning
Market segmentation may assist you in defining and comprehending the people you want and ideal clients. If you're a marketer, this helps you to focus your marketing more efficiently by identifying the correct market for your items.
You may divide an audience into groups based on whether or not they own a dog. You could then further segment that audience based on the type of dog they have and display adverts for food tailored specifically for their dog's breed. This may be useful to a publisher. A publisher may utilize the same information to show dog-related material to those who own or like dogs.

Source: Safalta

Market segmentation enables you to focus your content to the correct individuals in the right way, rather than a general message to your whole audience. This increases the likelihood of individuals connecting with your ad or content, leading to greater effectiveness of campaigns and a higher return on investment (ROI). Boost your Skills by learning: Digital Marketing
Table of Contents:
1) There are four major forms of client segmentation:
2) Why Is Segmentation of Customers Necessary?

There are four major forms of client segmentation:
1) Demographic classification:
When you divide your customers based on demographics, you may categorize them by gender, age, level of education, spoken language, relationship status, and income. Customer demographics include job type as well. Assume you run a toy store and wish to enhance your sales through demographic segmentation. If, on the other hand, your shop sells women's accessories, your primary target demographic will be women. You should categorize your consumers based on their age and income based on your price and the sort of accessories you sell.
Download these Free EBooks: Introduction to digital marketing   

2) Geographic division:
Geographic segmentation, as the name implies, is based on where your consumers are. This might be a country, a city, or a region. Some firms cannot afford to export overseas, while others cannot afford to sell their products in surrounding towns. When these shops run online advertisements, their primary audience will be clients in their city or, in most cases, their nation. Consider the toy store once more. If the shop just has locations in California, delivering things to Europe will be prohibitively expensive. As a result, the shop is more likely to focus on selling in California and, depending on shipping costs, may choose to distribute items to neighboring states.
3) Segmentation based on behavior:
Behavioral segmentation refers to segmenting based on behavior. This might include purchasing trends, interests, and routines. You may begin to forecast your consumers' purchasing behavior and trends by observing how and when they buy your stuff. You may utilize that to give personalized services or to notify customers when their monthly payment is due. Online grocery retailers have a great chance to increase sales through behavioral segmentation. If they know that a given group of clients buys milk on a weekly basis, they may choose to remind them or offer emails, pop-ups, or advertisements on specified days of the week.
4) Psychographic classification:
Psychographic segmentation is the last but not least of the basic categories of client segmentation. It is, however, the most difficult to utilize and target. You may target clients based on their interests, attitudes, values, beliefs, and personalities by using psychographic segmentation. However, because of the variety of interests and how you will obtain consumer data, employing this way of segmenting clients is more difficult. Apple and Nike, for example, employ psychographic segmentation well in their marketing and ad targeting.
Read More:
1)  Top 12 AI-enhanced Website Performance Monitoring Tools

2) H&M integrates Virtual Assistant, Chatbot, and Live Chat with Google Services: Know Why

Why Is Segmentation of Customers Necessary?
Developing a company plan without first implementing an effective client segmentation technique would be a gamble. If you don't know who you're aiming at, you're unlikely to have any success. One of the numerous advantages of client segmentation is that it allows you to devote money more efficiently. This is because segmentation allows you to choose which marketing techniques merit various resource allocations. In addition, a lack of a strong client segmentation strategy might lead to erratic product development tactics. All of these issues, when combined, can delay or halt a company's advancement.
The commercial benefits from effective client segmentation are enormous. A consumer segmentation approach, for example, can obviously affect your working outcomes in the following ways.
  • Enhancing Your Product: Customer segmentation allows you to enhance your product by learning who uses it. This will eventually lead to increased sales. The benefits extend outside your primary product offering as well. Any insight into your top clientele will allow you to provide superior customer service, administration, and whatever other services comprise their experience with your business.
  • Searching for New Sales Opportunities: Segmentation enables you to direct resources to the channels and consumers that deliver the highest return on investment. As a result, your company will be able to increase its win rate, make more progress, and generate higher revenues.
  • Increase Your Competitive Advantage: Market segmentation helps you to remain ahead of the competition by providing clients with tailored products and services. The more precise your consumer segmentation, the greater your ability to match customer expectations and generate brand loyalty.
  • Scale economies: When you know which market to target with your product and service, you won't spend time or resources on places where you won't make a profit. Accurately deploying your assets across markets can assist you in achieving economies of scale.

GPT stands for Generative Pre-trained Transformer, a deep-learning system that can anticipate the next word in a sequence. That same capability enables it to process inputs correctly in order to anticipate the response with the highest chance of accuracy. GPT is a technology that receives textual input and returns it in a human-like fashion.

Read More: Top 12 AI-Enhanced SaaS Tools for Your Business

What are the many sorts of client segments?

Demographic, psychographic, behavioural, geographic, and firmographic segmentation are the five methods for segmenting markets.

What are the three different kinds of consumer segmentation?

The Ultimate Guide to SaaS Customer Segmentation. Customer segmentation may be classified into three types: trait-based, needs-based, and value-based. You may gain a full view of your most valued consumers by integrating these factors with your product data. Then you're ready to put into action a strategy to improve their experience and boost their retention.

What are the six different forms of segmentation?

There are six methods of user segmentation that might assist you in determining your target audience. They are behavioural segmentation, psychographic segmentation, demographic segmentation, geographic segmentation, occasional segmentation, and cultural segmentation.

Who is your target market?

Your Customer Segments are the many groups of individuals or organisations that your company wishes to contact and service. This comprises users who may not earn income but are required for the business model to function.

What good is consumer segmentation?

Customer segmentation is the practise of categorising a company's consumers into groups based on their similarities. The purpose of customer segmentation is to determine how to relate to customers in each category in order to maximise each customer's value to the business.

What are the eight different forms of market segmentation?

Market segmentation can be classified as demographic, psychographic, firmographic, benefit or value, transactional, technographic, seasonal, or behavioural.

What exactly is user segmentation?

The technique of dividing users into discrete groups, or segments, based on shared criteria is known as user segmentation. Users may be segmented by a corporation based on language preferences, product version, geographical location, or user profile.

What are the five different kinds of demographic segmentation?

Age, gender, employment, income, education, and family status are the six basic forms of demographic segmentation. You can, however, target other demographics that are more relevant to the product or service you offer, such as race or religion.

Free Demo Classes

Register here for Free Demo Classes

Trending Courses

Master Certification in Digital Marketing  Programme (Batch-14)
Master Certification in Digital Marketing Programme (Batch-14)

Now at just ₹ 64999 ₹ 12500048% off

Professional Certification Programme in Digital Marketing (Batch-8)
Professional Certification Programme in Digital Marketing (Batch-8)

Now at just ₹ 49999 ₹ 9999950% off

Advanced Certification in Digital Marketing Online Programme (Batch-25)
Advanced Certification in Digital Marketing Online Programme (Batch-25)

Now at just ₹ 21999 ₹ 3599939% off

Advance Graphic Designing Course (Batch-10) : 100 Hours of Learning
Advance Graphic Designing Course (Batch-10) : 100 Hours of Learning

Now at just ₹ 16999 ₹ 3599953% off

Flipkart Hot Selling Course in 2024
Flipkart Hot Selling Course in 2024

Now at just ₹ 10000 ₹ 3000067% off

Advanced Certification in Digital Marketing Classroom Programme (Batch-3)
Advanced Certification in Digital Marketing Classroom Programme (Batch-3)

Now at just ₹ 29999 ₹ 9999970% off

Basic Digital Marketing Course (Batch-24): 50 Hours Live+ Recorded Classes!
Basic Digital Marketing Course (Batch-24): 50 Hours Live+ Recorded Classes!

Now at just ₹ 1499 ₹ 999985% off

WhatsApp Business Marketing Course
WhatsApp Business Marketing Course

Now at just ₹ 599 ₹ 159963% off

Advance Excel Course
Advance Excel Course

Now at just ₹ 2499 ₹ 800069% off