Aleksandra Mastek (N00200024)

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Definition

<aside> 💬 Customer segmentation is a way to split customers into groups based on certain characteristics that those customers share. A company might segment customers based on a common characteristic such as age, gender, interests and spending habits.

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Customer segmentation is a common practice across many industries with the set of attributes utilised being relevant to the particular domain. Examples of such domains include marketing, advertising, education, and system design. [2]

Types of Customer Segmentation

Demographic Segmentation

Groups the customers together on a societal level.

Gender

Abercrombie Fitch Emails, Stephen Clough [9]

For instance, A&F has segmented its customer on a gender basis. They divided their customer profiles and created two different campaigns since a singular campaign would compromise effectiveness with both male and female demographics

Age

Unidays, ASOS [8]

Another example of demographic segmentation is the offer from ASOS that targets their customer by age.  In this instance their target segment are students.

Geographic Segmentation

Grouping potential customers by country, state etc.

Location

Screenshot, H&M Entrance [6]

For instance, H&M home website will ask the user to select their geographical location. This segmentation allows H&M to create a campaign based on current country fashion trends.

Psychographics Segmentation