Definition of Data Segmentation
The process of dividing data into distinct groups based on specific criteria.
Explanation of Data Segmentation
Data segmentation involves dividing a dataset into smaller, more manageable segments or groups based on specific criteria. This process helps businesses analyze data more effectively, uncover patterns, and make targeted decisions. Common segmentation criteria include demographics, behavior, and geographic location. By segmenting data, businesses can create personalized marketing campaigns, improve customer experiences, and optimize resource allocation. Data segmentation also supports advanced analytics and machine learning by providing more granular insights. Effective segmentation requires a clear understanding of the data and the objectives of the analysis. It is a critical step in data analysis and business strategy.