Customer Profiles

ALSO CALLED: Profile Customers, Profiling Customers, Customer Analysis
DEFINITION: Customer segmentation is the practice of dividing a customer base into groups of individualsthat are similar in specific ways relevant to marketing, such as age, gender, interests, spendinghabits, and so on. Using segmentation allows companies to target groups effectively, and allocatemarketing resources to best effect. According to an article by Jill Griffin for Cisco Systems,traditional segmentation  … 
Definition continues below.

CUSTOMER PROFILES DEFINITION (continued): …  focuses on identifying customer groups based on demographics andattributes such as attitude and psychological profiles. Value-based segmentation, on the otherhand, looks at groups of customers in terms of the revenue they generate and the costs ofestablishing and maintaining relationships with them.Customer segmentation procedures include: deciding what data will be collected and how it willbe gathered; collecting data and integrating data from various sources; developing methods of dataanalysis for segmentation; establishing effective communication among relevant business units (suchas marketing …