What is user segmentation?

User segmentation is the process of dividing users or customers into groups based on shared characteristics, behaviors, needs, or preferences. It helps businesses understand different types of users and provide more relevant experiences, content, products, or marketing messages.

Common segmentation criteria include:

• Demographics: age, location, or other relevant characteristics.
• Behavior: browsing, clicks, purchases, or website interactions.
• Customer lifecycle: new, active, returning, or inactive customers.
• Purchase behavior: order frequency, product categories, or spending levels.
• Interests and preferences: products, services, or content users engage with.
• Business characteristics: industry, company size, or order volume for B2B customers.
• Engagement: highly engaged, moderately engaged, or inactive users.

For example, an ecommerce business might create segments for first-time visitors, returning customers, high-value customers, and users who abandoned their carts. It can then tailor experiences or campaigns for each group.

In CRO, user segmentation helps businesses identify how different groups behave and convert. Comparing conversion rates, funnel behavior, and engagement across segments can reveal opportunities for more relevant landing pages, offers, product recommendations, and messaging.