Customer segmentation was put forward by American scholar Wendell Smith in the mid-1950s. Its theoretical basis lies in the heterogeneity of customer demand and the need for enterprises to effectively participate in market competition on the basis of limited resources. Its goal is to better understand customers and meet their needs, so as to improve the company's profitability and promote income growth. In promoting revenue growth, customer segmentation has the most significant impact, because it can help increase the number of customers, increase the sales of each customer and enhance the life cycle value of customers. In addition, it also helps to allocate resources reasonably, thus providing services to segmented customer groups more economically.
Today, customer segmentation is no longer a simple or static marketing technology, but a tool for companies to understand and manage their customer portfolio. Providing information and guidance for the company's key decisions is the core content of successful enterprises to carry out business. Due to fierce market competition, enterprises can no longer tolerate costly marketing mistakes, low return on investment (ROI) or market expansion plans with limited appeal to customers. For more information on how to segment customers, please visit Guanchen website-knowledge base.