What is microsegmentation?

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Microsegmentation refers to the process of dividing customers or markets into smaller groups. These groups or segments share common characteristics and are typically created based on criteria such as demographics, priorities, needs, and purchasing preferences.

Similar to macro-segmentation, micro-segmentation starts with the traditionally defined groups that companies create for marketing purposes. However, micro-segmentation goes a step further to list of companies in malaysia with email address identify opportunities to retain potential and existing customers within those segments. This helps companies learn more about the products or services customers prefer, their purchasing history, and how often they buy from the brand, therefore improving customer service , and return on investment. Understanding target customers in this way can also help companies expand into physical locations where their customers are likely to live. For example, if through micro-segmentation a brand discovers that its products are most popular among young, highly educated women, decision-makers can prioritize expansion into areas with high populations of women working in STEM fields to capitalize on existing markets.

Typically, groups created through microsegmentation consist of a handful of customers, which helps brands with highly personalized predictive analytics and marketing optimization. As a result, it becomes easier to forecast the effectiveness of sales and marketing strategies across different microsegments or customers.