• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
QuestionPro

QuestionPro

questionpro logo
  • Products
    survey software iconSurvey softwareEasy to use and accessible for everyone. Design, send and analyze online surveys.research edition iconResearch SuiteA suite of enterprise-grade research tools for market research professionals.CX iconCustomer ExperienceExperiences change the world. Deliver the best with our CX management software.WF iconEmployee ExperienceCreate the best employee experience and act on real-time data from end to end.
  • Solutions
    IndustriesGamingAutomotiveSports and eventsEducationGovernment
    Travel & HospitalityFinancial ServicesHealthcareCannabisTechnology
    Use CaseAskWhyCommunitiesAudienceContactless surveysMobile
    LivePollsMember ExperienceGDPRPositive People Science360 Feedback Surveys
  • Resources
    BlogeBooksSurvey TemplatesCase StudiesTrainingHelp center
  • Features
  • Pricing
Language
  • English
  • Español (Spanish)
  • Português (Portuguese (Brazil))
  • Nederlands (Dutch)
  • العربية (Arabic)
  • Français (French)
  • Italiano (Italian)
  • 日本語 (Japanese)
  • Türkçe (Turkish)
  • Svenska (Swedish)
  • Hebrew IL (Hebrew)
  • ไทย (Thai)
  • Deutsch (German)
  • Portuguese de Portugal (Portuguese (Portugal))
Call Us
+1 800 531 0228 +1 (647) 956-1242 +52 999 402 4079 +49 301 663 5782 +44 20 3650 3166 +81-3-6869-1954 +61 2 8074 5080 +971 529 852 540
Log In Log In
SIGN UP FREE

Home Market Research

Customer segmentation: What it is, types & tips

We know that there are more profitable consumers than others, so companies need to perform customer segmentation that allows them to differentiate this group from others and meet their demands effectively to keep them in the long term with the ideal customer behavior.

Even if the organization has a very specific market segment, there are still variations among individual customers.

To scale efficiently and effectively, companies must focus their efforts not on a broad universe of lead types, but on a specific subset of customers who are most similar to their current best customers.

What is customer segmentation?

Customer segmentation is the process of grouping customers based on common characteristics.

These customer groups are essential in defining marketing campaigns, identifying potentially profitable customers, and in developing customer loyalty.

Generally, this process is determined according to similar characteristics, such as personality or preferences that relate to the behaviors that drive customer profitability.

Customer segmentation is one of the most popular practices during market research. The process is based on identifying consumers who share the following:

  • The fact that the same product can satisfy their needs, bringing us data about customer satisfaction.
  • Buying habits, responses to messages, marketing channels and sales channels, that a single go-to-market approach can be used to sell them competitively and economically.

When organizations perform such segmentation, they can effectively allocate marketing resources and increase upstream and cross-sell opportunities.

Create memorable experiences based on real-time data, insights and advanced analysis. Request Demo

Uses of customer segmentation

Organizations perform customer segmentation to meet specific objectives. Next, we mention each one of them:

  • Product development:

Organizations can tailor product segmentation features to the needs of the target audience.

Establish the appropriate price:

Another utility of market segmentation is that it allows you to set the price of a product, identifying the customers who can afford it.

  • Marketing messages:

This type of segmentation tries to establish the way in which organizations send a message to their audience in order to attract them effectively.

  • Targeting advertising:

With customer segmentation, organizations divide the target audience into different groups to direct their promotions.

Types of customer segmentation

We can classify them in 4 different ways. Next, we mention each one of them:

  • Geographical segmentation: It is the process of grouping customers based on their geographical location, climate, etc., to define the best place to market your brand and expand the business.
  • Demographic targeting: This is one of the most important types of customer behavioral targeting. It is about grouping them using elements such as age, gender, nationality, educational level, family size, occupation, income, etc. In this way it is possible to know how they use the products and how much they would pay for them.
  • Psychographic Segmentation: This process is about dividing clients based on their behavior, lifestyle, values, attitudes, and interests. Thorough research is necessary for this type of segmentation, as it is relatively subjective.
  • Behavioral segmentation: It consists of identifying specific attitudes of customers, that is, trends in their behavior and the process to make a purchase decision.

How to perform customer segmentation

There are different methods of market segmentation. Next, we have for you the steps to effectively segment your customers:

customer segmentation

1. Establish your market

The first step is to identify the size of the industry in which your business is oriented.

This process will help you discover how you can stand out from the competition and if your products have the right features to meet customer needs.

2. Choose your type of segmentation

Choose the type of segmentation that best suits the objectives of your organization.

To do this, you must resort to collecting customer data, aligning stakeholders on the variables to segment and validate potential segments.

3. Understand the needs and preferences of customers

To meet the needs of customers, organizations can collect information through:

  • Interviews
  • Online surveys
  • Focus group

With the right questions, it is possible to know in detail the preferences, tastes and needs of the clients to cover them successfully.

4. Establish the ideal customer segment for your business

Perform an analysis of the information collected in order to create specific and detailed market segments for your business.

To ensure the success of your customer segmentation efforts, it is necessary to cover a simple group that covers the majority of your customers and allows you to identify their needs and also confirm the acceptance of your products.

5. Check the effectiveness of segmentation

The last step of the is to carry out a test that ensures success.

This step involves testing your established market segmentation strategies with the right customers to identify items that need adjustment.

Advantages of customer segmentation

This type of segmentation allows organizations to tailor their marketing efforts to various subsets of the target audience. Those efforts can relate to both communications and product development.

Additionally, customer segmentation has the following benefits:

  • When you know who you are targeting, you can create targeted marketing messages that will impact specific groups of customers.
  • Customer segmentation allows you to select the best communication channel for the segment, whether by email, social media posts, website advertising, or other traditional media.
  • Identify ways to improve products and services. Based on the true needs of the customers who invest the most money in the organization.
  • Direct efforts to the most profitable customers, having knowledge of their age, location, purchasing habits, interests, etc. In this way it is possible to send direct marketing messages to attract the right audience.
  • Build better customer relationships and connect, which will build brand loyalty.
  • Organizations can offer personalized customer service after meeting the needs of the most important segment of their business and thus, position their brand in the industry.

LEARN ABOUT: Consumer Decision Journey

As you have read throughout this article, customer segmentation allows organizations to identify the group of consumers from which they have the highest profits and establish strategies that help them meet their needs and use the appropriate messages to attract them.

Start collecting information from your consumers effectively. Contact us! At QuestionPro we will help you achieve it today.

SHARE THIS ARTICLE:

About the author
Fabyio Villegas
Copywriter and SEO Specialist. With over 11 years of experience in Digital Marketing and Educational Content Curation.
View all posts by Fabyio Villegas

Primary Sidebar

Research what's on your mind. Find out what's on theirs!

A suite of tools to leverage research and transform insights.

Discover our insight platform

RELATED ARTICLES

HubSpot - QuestionPro Integration

QuestionPro Thrive: A Space to Visualize & Share the Future of Technology

Jun 18,2024

HubSpot - QuestionPro Integration

Top 7 Best GetFeedback Alternatives With Ratings

Nov 16,2022

HubSpot - QuestionPro Integration

Signs You Are in a Toxic Workplace & How to Deal With It?

Nov 01,2023

BROWSE BY CATEGORY

  • Academic
  • Academic Research
  • Artificial Intelligence
  • Assessments
  • Audience
  • Brand Awareness
  • Business
  • Case Studies
  • Communities
  • Consumer Insights
  • Customer effort score
  • Customer Engagement
  • Customer Experience
  • Customer Loyalty
  • Customer Research
  • Customer Satisfaction
  • CX
  • Employee Benefits
  • Employee Engagement
  • Employee Engagement
  • Employee Retention
  • Enterprise
  • Events
  • Forms
  • Friday Five
  • General Data Protection Regulation
  • Guest Post
  • Insights Hub
  • Life@QuestionPro
  • LivePolls
  • Market Research
  • Marketing
  • Mobile
  • Mobile App
  • Mobile diaries
  • Mobile Surveys
  • New Features
  • non-profit
  • NPS
  • Online Communities
  • Polls
  • Question Types
  • Questionnaire
  • QuestionPro
  • QuestionPro Products
  • Release Notes
  • Research Tools and Apps
  • Revenue at Risk
  • Startups
  • Survey Templates
  • Surveys
  • Tech News
  • Tips
  • Training
  • Training Tips
  • Trending
  • Tuesday CX Thoughts (TCXT)
  • Uncategorized
  • VOC
  • Webinar
  • Webinars
  • What’s Coming Up
  • Workforce
  • Workforce Intelligence

Footer

MORE LIKE THIS

wells-fargo-nps-2025

Wells Fargo NPS 2025: What Businesses Can Learn

May 19, 2025

word-cloud

Word Cloud: What it is & How to Use QuestionPro Word Cloud?

May 16, 2025

synthetic data and ai - market research

Redefining Research Strategy with AI and Synthetic Data

May 15, 2025

Kohl's-NPS-2025

Kohl’s NPS & Satisfaction in 2025

May 15, 2025

Other categories

  • Academic
  • Academic Research
  • Artificial Intelligence
  • Assessments
  • Audience
  • Brand Awareness
  • Business
  • Case Studies
  • Communities
  • Consumer Insights
  • Customer effort score
  • Customer Engagement
  • Customer Experience
  • Customer Loyalty
  • Customer Research
  • Customer Satisfaction
  • CX
  • Employee Benefits
  • Employee Engagement
  • Employee Engagement
  • Employee Retention
  • Enterprise
  • Events
  • Forms
  • Friday Five
  • General Data Protection Regulation
  • Guest Post
  • Insights Hub
  • Life@QuestionPro
  • LivePolls
  • Market Research
  • Marketing
  • Mobile
  • Mobile App
  • Mobile diaries
  • Mobile Surveys
  • New Features
  • non-profit
  • NPS
  • Online Communities
  • Polls
  • Question Types
  • Questionnaire
  • QuestionPro
  • QuestionPro Products
  • Release Notes
  • Research Tools and Apps
  • Revenue at Risk
  • Startups
  • Survey Templates
  • Surveys
  • Tech News
  • Tips
  • Training
  • Training Tips
  • Trending
  • Tuesday CX Thoughts (TCXT)
  • Uncategorized
  • VOC
  • Webinar
  • Webinars
  • What’s Coming Up
  • Workforce
  • Workforce Intelligence

questionpro-logo-nw
Help center Live Chat SIGN UP FREE
  • Sample questions
  • Sample reports
  • Survey logic
  • Branding
  • Integrations
  • Professional services
  • Security
  • Survey Software
  • Customer Experience
  • Workforce
  • Communities
  • Audience
  • Polls Explore the QuestionPro Poll Software - The World's leading Online Poll Maker & Creator. Create online polls, distribute them using email and multiple other options and start analyzing poll results.
  • Research Edition
  • LivePolls
  • InsightsHub
  • Blog
  • Articles
  • eBooks
  • Survey Templates
  • Case Studies
  • Training
  • Webinars
  • All Plans
  • Nonprofit
  • Academic
  • Qualtrics Alternative Explore the list of features that QuestionPro has compared to Qualtrics and learn how you can get more, for less.
  • SurveyMonkey Alternative
  • VisionCritical Alternative
  • Medallia Alternative
  • Likert Scale Complete Likert Scale Questions, Examples and Surveys for 5, 7 and 9 point scales. Learn everything about Likert Scale with corresponding example for each question and survey demonstrations.
  • Conjoint Analysis
  • Net Promoter Score (NPS) Learn everything about Net Promoter Score (NPS) and the Net Promoter Question. Get a clear view on the universal Net Promoter Score Formula, how to undertake Net Promoter Score Calculation followed by a simple Net Promoter Score Example.
  • Offline Surveys
  • Customer Satisfaction Surveys
  • Employee Survey Software Employee survey software & tool to create, send and analyze employee surveys. Get real-time analysis for employee satisfaction, engagement, work culture and map your employee experience from onboarding to exit!
  • Market Research Survey Software Real-time, automated and advanced market research survey software & tool to create surveys, collect data and analyze results for actionable market insights.
  • GDPR & EU Compliance
  • Employee Experience
  • Customer Journey
  • Synthetic Data
  • About us
  • Executive Team
  • In the news
  • Testimonials
  • Advisory Board
  • Careers
  • Brand
  • Media Kit
  • Contact Us

QuestionPro in your language

  • English
  • Español (Spanish)
  • Português (Portuguese (Brazil))
  • Nederlands (Dutch)
  • العربية (Arabic)
  • Français (French)
  • Italiano (Italian)
  • 日本語 (Japanese)
  • Türkçe (Turkish)
  • Svenska (Swedish)
  • Hebrew IL (Hebrew)
  • ไทย (Thai)
  • Deutsch (German)
  • Portuguese de Portugal (Portuguese (Portugal))

Awards & certificates

  • survey-leader-asia-leader-2023
  • survey-leader-asiapacific-leader-2023
  • survey-leader-enterprise-leader-2023
  • survey-leader-europe-leader-2023
  • survey-leader-latinamerica-leader-2023
  • survey-leader-leader-2023
  • survey-leader-middleeast-leader-2023
  • survey-leader-mid-market-leader-2023
  • survey-leader-small-business-leader-2023
  • survey-leader-unitedkingdom-leader-2023
  • survey-momentumleader-leader-2023
  • bbb-acredited
The Experience Journal

Find innovative ideas about Experience Management from the experts

  • © 2022 QuestionPro Survey Software | +1 (800) 531 0228
  • Sitemap
  • Privacy Statement
  • Terms of Use