Segment

Segments can be broken down into product segments and customer segments.

A customer segment is a group of customers that is clustered based on common characteristics. This is typically done on demographics (like age or sex). Typically, the 'individuals' are separated from business segments.

Why would you make a distinction between different customer segments?

• To create and communicate targeted marketing messages that will resonate with specific groups of customers, but not with others (who will receive messages tailored to their needs and interests, instead).
• Select the best communication channel for the segment, which might be email, social media posts, radio advertising, or another approach, depending on the segment. 
• Identify ways to improve products or new product or service opportunities.
• Establish better customer relationships.
• Focus on the most profitable customers.
• Improve customer service.
• Upsell and cross-sell other products and services
• ...

A product segment refers to the grouping of products that have similar characteristics or attributes and serve a similar market. Identifying multiple product segments in the RetailSonar platform allows you to focus on category management.