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Keyword: Customer Segment
A customer segment is part of a group of customers that have been divided into segments as it relates to marketing. For instance, a group of customers may be segmented into groups according to spending habits, interests, age and gender, as long as it is relevant to the marketing issue at hand.
Companies benefit greatly with the use of customer segmentation because it provides a way to target customers' needs more effectively. As a result, this allows for the marketing resources to be allocated in the best ways. When speaking in terms of the separation factors, the traditional segments are usually based on psychological profiles and attitudes, as well as demographics.
Value-based segmentation is another type of customer segmentation. This variation, however, separates customers into groups that are based on the revenue that is generated, as well as the amount it costs in order to establish and maintain customer relationships.
Some of the procedures that are included in customer segmentation are data collection decisions, data integration, data analysis methods, effective customer service and marketing and application implementation. These procedures ensure that the information that is collected is effectively dealt with.
To find out more information on customer segment and segmentation, refer to the links on this Business.com page.
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