Customer Analytics For Dummies

Chapter 4

Segmenting Customers

In This Chapter

Applying the advantages of segmenting customers

Following the segmentation process

Transforming customer data into segments

Unless you have only one customer, you’ll want to understand how your customers differ and how you can adapt to the differences. Customer segmentation is a powerful technique to focus efforts and serve customers better.

A customer segment is a grouping of customers that share certain characteristics. Understanding your customers — their similarities and differences — is one of the most fundamental and essential steps in quantifying the customers’ relationship with your product and company. Not only does segmenting customers tell you how to better serve current customer demographics, but it also allows you to discover any unmet needs and deliver better products and services in the future.

In this chapter, you discover how customer segmentation can improve the way you do business and increase your profits. First, I discuss the advantages of customer segmentation. Then, I introduce you to the type of information you need about your customers in order to build a sound segmentation strategy. Finally, you discover how ...