Segmentation is a term which is widely used in marketing and communications sectors. However there are benefits for all service providers in applying the principles of segmentation to their existing and potential customers.

The purpose of segmentation is to better understand the needs of the customer through a process of identifying and differentiating between customer groups dependent on similar needs or interests of individuals in the group.

Segmentation provides valuable insight in to how to provide the best service for all customers by focusing on their needs, motivations and choices. It helps services to move away from the idea that 'one size fits all' for customers.