Customer segmentation

Customer segmentation

Sometimes referred to as market segmentation, this is the process of breaking down a population into groups, or samples, of similar characteristics with an identifiable difference. This can be as simple as splitting your samples between men and women, or could be based on any other attribute about the population. Often a core demographic or value is used for the groupings.

 

A popular example of segmentation would be the machine learning a grocery shop may apply to its customers to assist their targeted marketing campaigns by suggesting products that are popular with the customers they have grouped you with.