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What does segmentation mean?

Segmentation is the division of various information into groups.

Segmentation divides a set of information carriers (e.g., people with certain characteristics) into groups with one or more characteristics. For example, in email marketing, a segment can be created for recipients who have already purchased a product, with the goal of encouraging these existing customers to purchase again.

Customers are segmented by behavior, demographics, and further characteristics. This customer segmentation supports the track record of marketing automation in a further step.

Potential customers can be accompanied on their customer journey and based on which customer segment they belong to, they will continue to be provided with appropriate information automatically until they decide to purchase a product or service or at least reach the point where they seek direct personal contact with a company representative.

Accordingly, customer segmentation not only supports marketing automation but also lead generation and ideally sales.