Customer segmentation and customer buying behavior
Segmenting the customers means dividing our customers into groups relevant to our business. Customers are divided based on demography, behavior, and other indicators. Analyzing your customers and dividing them into different groups allows you to be more accurate in your marketing activities.
There are different types of customer segmentation; some of them are:
Geographic segmentation
Demographic segmentation
Buying behavior segmentation
Psychographic segmentation
Segmentation by benefits
Cultural segmentation
In this chapter, we'll develop an application that allows us to visually create customer segments based on different variables. In the next chapter, we'll create a system that will automatically segment our customers based on their shopping habits in the main product categories. The main objective of this application is improving our knowledge of our customers to address more effective marketing activities.
