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Customer segmentation analysis is a business process that groups customers according to a set of traits. There are four broad categories of customer traits commonly used. They are demographic, psychographic, customer journey, and behavioral traits.

Customer segmentation relies on customer data. Additionally, customer identification capabilities is essential to tie data to customer records.

Today, eCommerce stores can use customer data platforms to cr cell phone directory india eate high fidelity customer segments and power numerous personalization strategies.


Above is a great illustration by Intercom on what segmenting customers means.

There are numerous customer traits used in customer segmentation analysis. However, as an overview, we can broadly group them into four basic types.

1. Demographic customer traits
Demographic segmentation uses demographic traits to group customers. The most commonly used demographic characteristics include

Age: Segment customers based on age brackets or specific ages. Includes birthdays.
Gender: Segment customers based on male, female, or other.
Race: Segment customers based on what race the customer is.
Ethnicity: Segment customers based on what ethnicity the customer is.
Income level: Segment customers based on which income bracket they fall into.
While demographics can be useful for certain products, this type of segmentation does not