Customer segmentation is majorly of following types:

Demographic Segmentation

Demographic segmentation is used to divide customers into groups based on their age, gender, income level, religion or ethnicity.

Geographic Segmentation

Geographic segmentation is uses factors like nations, states, regions, cities, postal/zip codes to divide customer base into various groups. This helps marketers run specific marketing and promotional campaigns to various regions and create unique offerings.

 Lifestyle Segmentation

This used activities, interests and opinions (AIOs) of customers to divide them in groups. For example how often customers travel abroad, eat out regularly or whether they own a smart phone or feature phone.

Lifestage Segmentation

This segmentation uses the life stage of customers to divide in various groups. Customers are normally divided based on following factors:

  • Single/unmarried
  • Married without children
  • Married with dependent children
  • Married with independent children
  • Retired

Behavioural/Attitudinal Segmentation

Behavioural or Attitudinal segmentation divides consumers into groups based on their attitude, opinions, beliefs and perceptions towards a product/service.

Benefit Segmentation

Benefit segmentation uses sought or perceived benefits from a product/service by customers to divide them in groups. For example – Credit card users can be grouped based on following factors:

  • Value Maximisers
  • Benefit Seekers
  • Reluctant Aspirers
  • Big Spenders
  • Sensible Users

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Ambarish is the MD and CEO of NOVONOUS Business Consulting Pvt Ltd, a knowledge management firm. He likes sharing his experiences in the field of Market Research to those who are passionate and like exploring more about this field.

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