Digging into the difference between Consumer and Customer Segmentation

Consumer segmentation and customer segmentation are terms often used interchangeably, but they can have slightly different meanings depending on the context. However, in many cases, they are used synonymously. Here's a general understanding of both terms:


Consumer Segmentation:
  • Definition: Consumer segmentation involves dividing a more significant market into smaller groups or segments based on shared characteristics, preferences, behaviors, or demographics.

  • Scope: It encompasses a broader audience, including current and potential consumers and individuals who may or may not have engaged with a specific product or service.

  • Purpose: Consumer segmentation helps businesses understand the diverse needs and preferences of different groups within the market, allowing for targeted marketing and product development.


Customer Segmentation:
  • Definition: Customer segmentation focuses on dividing an existing customer base into distinct groups based on criteria such as purchasing behavior, preferences, loyalty, or demographics.

  • Scope: It is narrower and concentrates on individuals who have already engaged with a company's products or services by purchasing or utilizing its offerings.

  • Purpose: Customer segmentation aims to tailor marketing strategies, communication, and customer experiences to meet the needs of different customer groups better, ultimately enhancing customer satisfaction and loyalty.


While the terms are often used interchangeably, "consumer segmentation" has a broader scope and can include both current and potential customers. "Customer segmentation" specifically targets those who have already interacted with a business. The key is strategically using these segmentation strategies to optimize marketing efforts and improve overall business performance. 


Want to learn more about how we can utilize consumer segmentation in your marketing research strategy? Check out this blog, "Unleashing the Impact of Consumer Segmentation in Market Research."  Oh, and reach out to us. We'd love to help!



Posted by Jennifer

Jennifer is all things project management, but she is also passionate about qualitative research, and creating unique graphics and data viz. When she isn't consumed with work, you can find her playing outside with her husband, son and their two blue heelers, starting her next DIY project, or volunteering in the community.

Topics: Research Tips, Marketing, Research, What We Do