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Customer Segmentation Methodology
The approach used to categorize customers into segments based on shared characteristics, guiding the allocation of marketing resources.
Implications
The specific approach and techniques used to segment a customer base, which might include data analysis, surveys, and clustering algorithms, often tailored to the specific needs and goals of the business.
Example
Example: A SaaS company uses a customer segmentation methodology that includes k-means clustering to group customers based on usage patterns, helping the company to tailor its service plans and communications.
Related Terms
Different from the definition or analysis of segments, the methodology refers to the tools and processes used to actually create the segments.
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