What is segmentation?

Segmentation is an analytical technique which helps you manage complexity in your business by grouping similar things together.

Most businesses use market segmentation as a tool to group their customers or consumers according to behaviour patterns.

Done well, segmentation identifies groups of people which are very similar to each other, and quite different from those in other groups.

Segmentation uses advanced statistical techniques to analyse the possible ways data can be grouped and to identify the most useful sets of clusters.