Definition
Customer segmentation is the process of dividing customers into groups based on shared characteristics. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Customer segmentation. Once they agree it means “Process of dividing customers into groups based on shared characteristics”, the argument becomes a decision.
Common mistake
Using Customer segmentation as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Customer acquisition
Process of gaining new customers through marketing and sales efforts.
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Customer lifetime value (CLV)
Predicted revenue a customer will generate over their entire relationship.
Read definition →
Customer loyalty
Customer's commitment to repeatedly purchase from a particular brand.
Read definition →
Customer Relationship Management (CRM)
Technology and strategy for managing customer interactions and data.
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