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What is Customer Segmentation and Why Does it Matter?


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Customer segmentation is an important aspect of a marketing plan. Customer segmentation helps in understanding who your customers are, how to reach your customers, how to build a brand, and boosting sales. There are different categories for customer segmentation.

1. Geographical Segmentation: This involves knowing the location of your customers.

2. Demographic Segmentation: This involves understanding customers' age, gender, income, and more.

3. Psychographic Segmentation: This will let you learn about customers' lifestyle and interests.

4. Behavioral Segmentation: This involves understanding customers' spending habits and brand preferences.

5. Media Segmentation: This involves knowing the media platforms your customers use.

Customer segmentation is a method to know your customers so that you can tailor your marketing and promotion campaign to generate sales and conversion.

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Customer segmentation can be applied on all areas not just in business world. let's say you want to create a community. You need to identify your customers, the people who are likely to use your community, you will have to identify their location so that you can use the right strategy to promote your community. If you know your customer and use methods to reach your proper customers, it is easier to become successful with your project.

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Marketing plays a huge role in generating sales as well as building leads and user base. Marketing starts with identifying who your customers are, knowing where your customers are located, finding what your customers are interested in, etc. Finding your customers and knowing about them is customer segmentation. Success of your marketing campaigns hugely depends on how good you are in customer segmentation.

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Your marketing campaign will be effective only when you are able to reach to your potential customers. Without reaching your potential customers, your marketing goal will not be fulfilled. How would you reach your customers without knowing who your customers are? That's why it is very important to do customer segmentation.

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