What is customer segmentation in AI marketing?

Customer segmentation in AI marketing refers to the process of dividing a diverse customer base into smaller, distinct groups. This segmentation is based on various criteria such as demographics, behavior, purchasing patterns, or preferences. By identifying specific segments, marketers can tailor their strategies and offers to meet the unique needs and characteristics of each group, leading to more effective and targeted marketing campaigns.

This approach enables businesses to enhance customer engagement and satisfaction by delivering personalized content and experiences that resonate with each segment. It improves the efficiency of marketing efforts, as resources can be allocated more effectively to audiences that are most likely to respond positively.

In contrast, the other options do not accurately reflect the concept of customer segmentation. Group branding strategies and creating a single marketing strategy for all customers overlook the nuances of individual customer needs, while a method for increasing product prices does not align with the goal of segmentation, which is to enhance customer understanding and targeting rather than just focusing on pricing strategies.