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6 Examples of Customer Segmentation

Customer segmentation is the practice of dividing a target market into groups based on common factors in order to improve marketing results. This can be done to tailor products, services and messages for different groups of customers. Alternatively, segmentation may be done to look for general insights and improvements whereby you are able to address your entire target market better by looking at where things are failing. The following are illustrative examples of customer segmentation.

Demographic Segmentation

Segmentation based on demographics such as age.
A retailer finds that a promotional campaign was most successful with women in their 20s. They use this information to target these customers with similar campaigns.

Price Sensitivity

Segmenting customers based on their price sensitivity.
A retailer has sales on Wednesdays and finds that price sensitive customers are willing to change their shopping habits and are likely to attend this sale. Customers who are insensitive to price are willing to pay higher prices to shop at their convenience. This allows the retailer to serve both price sensitive and insensitive segments.

Geographic Segmentation

Dividing customers based on location.
A restaurant chain finds that customer satisfaction is low in a particular city. They subsequently investigate the management and customer service practices in this city to determine a cause.

Psychographic Segmentation

Psychographic segmentation is based on how people think such as their interests and values.
A brand of tissue paper offers a fully recycled product for customers who are concerned about the environmental impact of their purchases. The same brand has a cheaper non-recycled product for price sensitive consumers who aren't willing to pay more for some perceived environmental benefit.

Behavioral Segmentation

Dividing customers based on what you have observed about their behavior.
A ecommerce retailer mails out a coupon for 10% off all fashions to customers who have recently abandoned a shopping cart with fashion products in it.

Firmographic Segmentation

Dividing business customers based on characteristics of their business such as industry or number of employees.
A Customer Relationship Management platform offers a version of their products for retailers and restaurants that includes point of sale functionality.

Target Market

This is the complete list of articles we have written about target market.
Conspicuous Conservation
Conspicuous Consumption
Geographic Segmentation
Local Marketing
Market Sizing
Mass Marketing
Niche Market
Price Sensitivity
Target Market
Total Addressable Market
Vertical Market
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Target Market

A list of common types of target market.

Marketing Mix Examples

Complete examples of the marketing mix for different business models.

Vertical Market

The definition of vertical market with examples.

Price Promotion Strategy

A list of common price promotion strategies.

Demographic Factors

A list of common demographic factors.

Customer Needs Examples

A list of common customer needs.

Customer Wants

An overview of customer wants with examples.

Examples of Customer Requirements

A list of common customer requirements.

Customer Success

An overview of customer success with examples.

Target User

An overview of target user with examples.

Marketing Analysis

An overview of marketing analysis with examples.

Market Sizing

The common types of market sizing with examples.

Customer Analytics

An overview of customer analytics with examples.

Audience Examples

Examples of audiences including intended audience, target audience and unintended audience.

Market Research

A systematic investigation of market conditions including customers and the competition.

Words To Describe Smell

A vocabulary for describing smell.

Demand Forecasting

The practice of predicting the demand in the market for a product or service.


Examples of common types of customers.

Market Needs

An overview of market needs with examples.
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