Mapping Software and GIS Glossary

DEFINITION

What is Customer Segmentation?

Customer segmentation is a strategic marketing practice that involves categorizing a diverse population based on shared geodemographic characteristics. This process simplifies the understanding of different consumer groups by grouping them into distinct "types" based on demographics, making it easier for businesses to tailor their strategies. By identifying and targeting specific market segments, businesses can uncover untapped opportunities in various locations. For example, a company might choose to direct premium product promotions to "Affluent Environments" characterized by high income and many college graduates, or place a new kid-friendly franchise in "Comfortable Living" neighborhoods with middle to high-income families. Customer segmentation provides valuable insights for businesses to optimize their marketing, product placement, and outreach efforts, resulting in more effective and personalized interactions with their target customers.

Customer segmentation map of Harris County, Texas

Customer segmentation of Harris County, Texas

Geodemographic Profiling

The Maptitude demographic segmentation data for the USA can be downloaded for free. The data presents demographics in a way that is easy to visualize and interpret. It makes it easy to identify potential business or franchise locations based on the geographic location of target audiences. Geodemographic segmentation can also help you discover opportunities through an analysis of your market areas by better defining the people you serve.

As a consulting service, the Maptitude team provides custom geodemographic data sets for your market in the USA or for many other countries such as the UK, Canada, and Australia. A Maptitude demographic segmentation breaks the population down into distinct "types" of people. This makes it simple to identify key populations for your direct marketing campaigns or business site analyses.

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