---
title: "Segment"
url: "https://kb.retailsonar.com/en/article/segment"
language: "en"
last_updated: "2023-03-24T13:43:53.755Z"
---

# 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.