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Customer Segmentation

What does 'Customer Segmentation' mean?

Customer segmentation is a software feature that involves dividing a company's customer base into smaller groups or segments based on various characteristics. These characteristics can include demographic information, purchasing behavior, geographic location, or psychographic information. The purpose of customer segmentation is to better understand and target specific groups of customers, allowing businesses to tailor their products, services, and marketing strategies to meet the unique needs and preferences of each segment. By utilizing customer segmentation, companies are able to identify and prioritize their most valuable customers, as

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This software is researched and edited by

Rajat Gupta is the founder of Spotsaas, where he reviews and compares software tools that help businesses work smarter. Over the past two years, he has analyzed thousands of products across CRM, HR, AI, and finance — combining real-world research with a strong foundation in commerce and the CFA program. He's especially curious about AI, automation, and the future of work tech. Outside of SpotSaaS, you'll find him on a badminton court or tracking the stock market.

Disclaimer: This research has been collated from a variety of authoritative sources. We welcome your feedback at [email protected].