In marketing, we often try to understand the behavior of certain subgroups of the customer base. Especially in targeted marketing, marketers try to segment the customer base in certain ways and focus on each target segment or customer group. This concentration on certain target customer segments results in better performance, as the needs and interests of those customers in the target group align and match better with the business's products, services, or content.
In this chapter, we are going to dive deeper into the concept of customer segmentation. We will discuss what customer segmentation is, the importance and benefits of having a good understanding of different segments of the customer base, and how to utilize customer segment analysis results for different marketing strategies. Aside from a more traditional way of segmenting the customer...
