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What is customer segmentation?

Dividing customers into groups that share characteristics or behaviour, to understand and serve them better.

Updated

Definition

Customer segmentation divides customers into groups that share traits, such as company size, industry and plan, or behaviour, such as features used, activity and source. Each group can then be analysed, served and messaged differently.

Kinds of segments

  • Descriptive: who the customer is (role, size, region).
  • Behavioural: what they did (invited a colleague, used a feature, went quiet).
  • Value-based: what they're worth (plan, revenue, expansion potential).

Behavioural segments are often the most useful in product work, because they can change.

How to build them

Send traits as user or account properties and actions as events. In LogZuno, segments combine properties, computed properties and what people did or didn't do in a period, and can be saved and exported.

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