There are several methods to segment customers, each with its own set of criteria:
Demographic Segmentation
This approach divides the market based on variables such as age, gender, income, education, and occupation. It’s one of the most straightforward and commonly used methods.
Geographic Segmentation
This involves segmenting the market based on location such as country, region, or city. Geographic factors can heavily influence consumer needs and preferences.
Psychographic Segmentation
This method focuses on the lifestyle, values, interests, and attitudes of customers. It goes beyond demographic information to understand the psychological aspects that drive consumer behavior.
Behavioral Segmentation
This approach is based on customer behavior like purchasing habits, spending behavior, brand loyalty, and user status. It helps in identifying patterns that can predict future behavior.