Customer Segmentation and Profiling

Know your customers better and target them in the most relevant way

Customer Segmentation and Profiling

Why is customer segmentation and profiling important?

Simply put, the main idea behind customer segmentation and profiling is to know your customers better and then break them into specific groups that share unique characteristics. Having a full understanding of customers and knowing their transaction/behavior patterns will help businesses take informed decisions. Eventually, this helps businesses to deliver enhanced customer service and boost customer satisfaction.

Though ‘customer segmentation’ and ‘profiling’ are two sides of the same coin, there’s a subtle difference between the both. While customer segmentation is all about dividing a company’s customer base into different groups that share specific characteristics based on demographics, geographies, buying behavior, and interests; customer profiling aims to know customers better and describe their types (persona).

How customer segmentation and profiling helped an automobile manufacturer

Our client, a renowned manufacturer of two-wheelers felt the need to reposition their brand and target a niche customer segment. The client knew that focusing on the right target market is the key to increase sales and to make their brand as a de facto for that particular customer segment. To achieve these goals, they chose Softweb as their partner to provide them with data attained after categorizing different customer segments and profiles.

Our team at Softweb analyzed their existing data and divided their product lineup for different customer segments. The vehicles that the client manufactured were categorized under various segments based on market analysis and targeting different customer segments.


  • Identifying different consumer segments with different wants and needs.
  • Ability to focus on the target market so much so that the sales increased by 6% for a particular model.
  • Changing how people perceived the client’s brand and repositioning it according to the target market.
  • Assigning each model to a different customer segment, thus expanding the reach to different customer groups.

How manufactures can benefit from customer segmentation and profiling

  • Manufacturers can build or launch products while taking customer requirement into consideration.
  • Marketers can target a specific customer segment for promoting their brands and products.
  • Brand awareness can be raised by introducing products for different user groups.
  • Reposition brand in a new customer market, allowing people to see a brand with a fresh perspective.
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