What is customer segmentation?
Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, spending habits, and so on. Using segmentation allows companies to target groups effectively, and allocate marketing resources to best effect. “There is a significant opportunity for local government to improve its performance through more effective use of customer intelligence. Customer information is an underutilised resource at the moment and its value as an ‘asset’ that can be used to drive improvements to service and performance is not sufficiently recognised by local government. There is increasing pressure for authorities to demonstrate that they can pro-actively identify customer needs and demonstrate how those needs are being met. Measuring performance in terms of impact on customers and their views will become an increasingly important feature of performance management. It is unlikely that the cou