A segment is a group of customers that share similar characteristics, e.g gender, age or location. At Engage, segments can also be based on similar actions or inactions, e.g “yet to log in in 30 days”. The process of creating this customer group is called Customer segmentation. Customer segmentation makes it possible to identify customers within these groups and send them the right message. Engage makes that even more seamless by automatically adding and removing customers from respective segments as the customer's data change.

Other definitions

Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately.

In business-to-business marketing, a company might segment customers according to a wide range of factors, including:

  • Industry
  • Number of employees
  • Products previously purchased from the company
  • Location
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Customer segmentation involves grouping customers into specific marketing groups, perhaps narrowing them down by gender, interests, buying habits, or demographic.

The process requires a thought-out strategy, understanding how to manage and group your customers and which data you will use to do this.

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