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Customer Segmentation in Product Management

Customer segmentation is the process of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, and spending habits. This allows for more targeted and effective marketing strategies, product development, and customer service.

Example

Netflix uses customer segmentation to tailor its content and recommendations. By analyzing viewing habits, Netflix can categorize its users into segments and recommend shows and movies that are more likely to be of interest, enhancing user engagement and satisfaction.