The Limitations of Traditional Segmentation

For years, businesses have relied on traditional segmentation methods like demographics (age, gender, location) and basic psychographics (lifestyle, interests). While these provide a starting point, they often fall short in truly understanding the nuances of customer behavior. These broad strokes fail to capture the subtleties that drive individual purchasing decisions and preferences, leading to less effective marketing campaigns and missed opportunities.

The Rise of AI-Powered Segmentation

The advent of artificial intelligence and machine learning has revolutionized customer segmentation. AI algorithms can analyze vast amounts of customer data – transactional history, website interactions, social media activity,