Demographic Customer Segmentation Businesses generally struggle to provide a personalized experience to customers. Understanding your customers is crucial if you want to grow your business. Knowing your customers will help you create targeted campaigns and ads. You can increase customer loyalty and customer service. It can help you in identifying new opportunities. In marketing, the personalization technique can be used to get potential customers in a case to boost sales. So, What is Customer Segmentation? it is the method of dividing customers into groups that have similar characteristics.