How does AI define segmentation in marketing?

In marketing, AI defines segmentation as the process of categorizing consumers into distinct groups based on shared characteristics. This grouping is primarily influenced by behavioral patterns and demographic information. Behavioral patterns may include purchase history, interaction with marketing materials, or engagement levels, while demographic information encompasses age, gender, income level, education, and geographic location.

This method allows marketers to more accurately target their audiences, creating tailored messages and campaigns that resonate with specific segments. By leveraging AI, marketers can analyze vast amounts of data quickly and efficiently identify these segments, leading to more effective marketing strategies. This approach enhances the likelihood of conversion, as messages are relevant and personalized to the needs and preferences of the target audiences.

Other approaches, such as random selection, focusing solely on email statistics, or using historical sales data without considering behavioral nuances, do not provide the comprehensive insight necessary for effective segmentation in today's data-driven marketing landscape.