Vantage Point
Home/Glossary/Customer Segmentation
General CRM

Customer Segmentation

Dividing a customer base into groups with similar characteristics for targeted marketing and service.

Complete Definition

Customer Segmentation in CRM uses demographic, behavioral, transactional, and psychographic data to group customers. Common segmentation approaches include RFM (Recency, Frequency, Monetary), lifecycle stage, product affinity, and predictive scoring. Effective segmentation enables personalized messaging, optimized resource allocation, and improved conversion rates across marketing and sales.

Key Points

  • 1Groups customers by characteristics
  • 2Enables targeted campaigns
  • 3Uses multiple data dimensions
  • 4Improves conversion rates

Need Expert Guidance?

Our team has 20+ years of experience with Salesforce and financial services CRM implementations.

Schedule a Consultation

Browse All Terms

View Complete Glossary