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Also known as: market segmentation, audience segmentation, customer segmentation

Segmentation

ConceptualMarketingStrategies

Definition

Segmentation: Segmentation divides your market or customer base into distinct groups based on shared characteristics, behaviors, or needs. Common segmentation criteria include demographics, firmographics, behavior, value, and lifecycle stage. Effective segmentation enables personalized marketing, focused positioning, and efficient resource allocation.

Example Usage

“Segmenting by company size revealed that enterprises need dedicated onboarding, leading to a new high-touch tier.”

Common Misconceptions

More segments are better. Too many segments dilute focus and complicate execution.
Segments are permanent. Customers move between segments; update segmentation logic regularly.
Segmentation is just for marketing. Product, sales, and support can all benefit from segmentation.

Related Terms

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