Customer Segmentation is a subdivision of marketing whereby customers with similar interests are grouped together in order to improve and enhance their experiences and target their specific needs. This provides the organization with a competitive advantage, as members are better able to understand the niche groups within the customer market. This management tool aids the organization by providing its customers with tailoring offers, discounts, products, and services to suit their needs. This will also aid in campaigns and pricing strategies and will help improve resource allocation and product development.
