Defining Customer Segmentation and Understanding its Value
Customer segmentation is a method of dividing customers into homogeneous
groups with a high degree of accuracy, based on demographic, behavioral,
predicted future behavior and other indicators.
In the online domain, multiple
campaigns compete for customers’ attention, and the marketer’s challenge is
to ensure that campaigns grab every customer's attention.
As more and more
customer data becomes available, marketers must use this data to customize
their campaigns as much as possible for customers’ needs and affinities.
the marketer’s goal is to maximize the value (revenue and/or profit) from each
customer, it is critical to know, in advance, how any particular marketing action
will most likely influence each customer.