Customer segmentation<\/a> is the act of separating your customers into smaller groups based on shared characteristics and behaviors. This way, you can tailor user experience according to their interests, demographics, budget, needs, etc.<\/p>\n For instance, let’s say you sell project management software for individuals, small firms, and mid-sized companies. Customer segmentation guides<\/a> how you onboard different users, which features you highlight, and what kind of resources you offer to match the specific needs of each customer segment.<\/p>\n Market segmentation<\/a> is a broader concept that divides the entire market into distinct groups. It can be helpful when conducting market research<\/a> and developing a targeted marketing strategy to reach potential customers.<\/p>\n Customer segmentation, on the other hand, focuses on dividing your existing customers into groups. This allows you to allocate resources more effectively and better serve your customers by providing a more personalized experience.<\/p>\n There are different customer segmentation models. You can segment customers by property (shared characteristics) or behavior (usage habits).<\/p>\n Within these models, we can identify different types. Here are the most common ways of segmenting customers:<\/p>\n <\/p>\nCustomer segmentation vs market segmentation<\/h2>\n
Customer segmentation types<\/h2>\n