5 criteria for customer segmentation

5 criteria for customer segmentation
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Customer segmentation is an essential component of modern marketing strategies. Companies are faced with the challenge of understanding heterogeneous customer markets and developing tailor-made offers for different customer groups.

Segmentation enables companies to deploy their resources more effectively, strengthen customer loyalty and increase customer satisfaction.

But which criteria are suitable for successful customer segmentation?

This article presents the most important criteria and highlights their significance in practice.



🎯 The most important summarized:

  • Dividing customers into segments enables companies to develop customized products and marketing strategies.



  • Customers can be segmented according to demographic (e.g. age, income), geographic (e.g. location), psychographic (e.g. values, lifestyle) and behavioral (e.g. purchasing behavior) characteristics.



  • By targeting specific customer groups, marketing measures can be designed more efficiently and wastage minimized.



  • Sound customer segmentation helps companies to better align their products, services and communication with customer needs and thus strengthen customer loyalty.

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1st criterion: Demographic criteria

Sociodemographics Insight into the social structure

Demographic criteria are among the most frequently used characteristics in customer segmentation.

They include factors such as:

  • Age: Products or services can be developed specifically for certain age groups, for example toys for children or financial products for senior citizens.

  • Gender: Gender-specific preferences can be taken into account in product development and advertising.

  • Income: Income influences purchasing power and demand for premium or budget products.

  • Level of education: The level of education can provide information about interest in certain products or services.

2nd criterion: Geographical criteria

Geographical segmentation is based on the customer’s place of residence or region.

Criteria here can include:

  • Region: different regions often have specific needs and preferences, for example in terms of climate or culture.

  • Urban vs. rural population: Consumers in urban areas often have different requirements than those in rural areas, for example in terms of mobility or infrastructure.

  • National differences: Cross-border companies must take cultural and legal differences into account.

3rd criterion: Psychographic criteria

Psychographic characteristics go deeper than demographic and geographical data, as they look at the personality, lifestyles and values of customers:

  • Personality: introverts or extroverts prefer different products and communication channels.

  • Values and attitudes: Customers who value sustainability specifically look for environmentally friendly products.

  • Lifestyle: People who are active in sports have different needs than those who lead a more leisurely lifestyle.

4th criterion: Behavioral criteria

The behavior of customers provides valuable information about their needs and preferences.

The most important behavioral criteria include

  • Buying behavior: How often does a customer shop, and how much do they spend when they do?

  • Brand loyalty: Does a customer always prefer the same brand or do they switch frequently?

  • Usage behavior: How and how often is a product or service used?

  • Price sensitivity: Do customers react sensitively to price changes, or is the price less relevant?

5th criterion: Technological criteria

Visitor behavior on your website

In the digitalized world, technological segmentation is playing an increasingly important role.

Examples include:

  • Online usage behavior: How active are customers on social media or e-commerce platforms?

  • Devices: Do customers prefer smartphones, tablets or desktop computers?

  • Technology acceptance: Are customers early adopters of new technologies or more conservative?

Conclusion

Customer segmentation is a crucial tool for effectively addressing different target groups and building long-term customer relationships.

The choice of the right criteria depends on the industry, the product and the company’s objectives.

While demographic and geographic criteria provide a solid basis, psychographic and behavioral approaches allow for a deeper and more differentiated analysis.

A combination of different criteria delivers the best results and helps companies to optimize their marketing strategies.


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