Customer segmentation is the practice of dividing a broad consumer or business market, typically in the context of marketing, into sub-groups of consumers based on shared characteristics. These characteristics can include demographic, psychographic, behavioral, or geographic factors. The goal of customer segmentation is to enable companies to tailor their marketing strategies, products, or services to meet the specific needs, preferences, and behaviors of different customer groups more effectively.

Common types of customer segmentation include:

1. Demographic segmentation: Dividing customers based on characteristics like age, gender, income, education, occupation, or family size.

2. Geographic segmentation: Grouping customers based on their location, such as region, city, climate, or population density.

3. Psychographic segmentation: Categorizing customers based on lifestyle, values, interests, or personality traits.

4. Behavioral segmentation: Segmenting based on consumer behavior, such as purchasing patterns, brand loyalty, or user engagement.

By using segmentation, companies can optimize marketing campaigns, improve customer retention, enhance product development, and increase sales by offering more personalized and relevant experiences to different customer groups.