What is customer segmentation for?

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If a company produces computer games and the cost of selling another copy is negligible, setting the same price for the US and India may not be the best idea. In this case, it is worth using customer segmentation. While a resident of New York can afford to pay $80 for 20 hours of entertainment, a resident of Delhi cannot afford to spend that much. Therefore, it is often very important to use this type of segmentation: geographic segmentation.

Different customer segments have different behaviours. Some people go to coffee shops every day. Others only go to meet friends. To attract specific groups of customers, the coffee shop morocco phone number data owner must take different measures. The first segment can be encouraged, for example, by introducing loyalty cards. However, this will have little effect on the second group.

Depending on the customer's attitude towards ecology, he or she may be willing to pay more for more environmentally friendly products. This situation can currently be observed, for example, in the clothing market, where garments made from recycled materials have started to become popular, despite their higher price.

Companies often offer different prices to businesses and individuals, thus treating them as two distinct customer segments. In some cases, businesses can obtain lower prices than individuals (e.g., purchase of building materials), in other cases (e.g., access to databases, some banking services) the opposite will apply.