The Top Segmentation Tools in 2025

segmentation tools cover image with orange slices arranged in a circle

Segmentation tools are software products that help you organize your customers into distinct segments based on specific criteria.

In the early days of marketing, businesses would send generic messages to a broad audience, hoping to land sales by covering a lot of ground. A lot of these efforts would receive poor engagement, reach irrelevant leads, and result in wasted resources. A solution was found in customer segmentation — the process of dividing customers based on common characteristics to target them better.

According to Salesforce, segmented marketing campaigns generate an average of 760% increase in revenue. With that kind of potential for earnings, a segmentation tool is a must.

We will first explain the basics of segmentation. Next, we will check out the different types of segmentation tools that are available and how you can benefit.

And since email marketing is a channel that benefits greatly from good segmentation, we will cover that in its own section.

Finally, we’ll share our list of the top 6 segmentation tools to choose from in 2024, so if you’re here for the list — scroll down or find the link in the Table of Contents.



What is Customer Segmentation?

Customer segmentation, also known as market segmentation, is the process of dividing a broad customer base into smaller, more manageable segments based on shared characteristics.

These characteristics can include:

  • Demographic information,
  • Purchasing behavior,
  • Interests,
  • Geographic location,
  • Other relevant factors.

Types of Customer Segmentation

There are numerous market segmentation methods as criteria vary from industry to industry.

The below 7 types are the most common and popular segmentation methods:

Segmentation typeCriteria typically used
Demographic SegmentationAge, gender, income, education, family status.
Geographic SegmentationCountry, region, city, or even climate.
Behavioral SegmentationLifestyle, values, personality, and interests.
Behavioral SegmentationPurchase habits, brand loyalty, engagement level, usage rate.
Firmographic SegmentationIndustry, company size, revenue, location.
Technographic SegmentationTechnology usage, such as software, hardware, or devices.
Engagement-based SegmentationWebsite visits, app usage, click-through rate.
Common Types of Segmentation

What are Segmentation Tools?

Segmentation tools are software instruments or platforms that help businesses with market segmentation. They help divide a customer base or target market into smaller, more defined segments with specific characteristics.

Key Functions of Segmentation Tools

The key functions of tools for segmentation include:

  1. Data collection and analysis: These tools gather data from multiple sources, such as CRM, social media, website activity, etc., and analyze it to find patterns.
  2. Segmentation criteria: Tools for segmentation allow businesses to set specific criteria, such as age, location, purchase history, or behavior, and automatically group customers.
  3. Ideal Customer Profiles (ICPs): They create detailed profiles of each segment, including customer preferences, behaviors, and needs.
  4. Personalized marketing campaigns: Such tools help businesses create customized marketing messages for each group.
  5. Insights and reports: Tools for segmentation provide insight and offer detailed reports to help make data-driven decisions.

The Benefits of Segmentation Tools

By investing in a segmentation tool, businesses can expect several significant benefits. They can help companies gain a competitive edge in the market.

Let’s review the additional benefits of such tools:

  • Improved targeting: Tools for segmentation can help identify specific customer groups for more relevant campaigns.
  • Personalization: Such tools make it possible to deliver customized messages, products, or services tailored to individual segments.
  • Higher conversions: Using a segmentation tool can guide businesses toward increased conversions.
  • Data-driven decision-making: The insights gained from customer data can help make informed business and marketing choices.
  • Increased ROI: Segmentation tools can help minimize waste and boost campaign effectiveness.
  • Market identification and expansion: These tools can help uncover patterns in your industry.
  • It facilitates multichannel marketing: You can ensure consistent and targeted communication across multiple platforms with the right market segmentation tool.

Before we share our list of the top 6 tools for segmentation, check out the types of tools you can choose from.


Types of Segmentation Tools

As different businesses have different needs, there are a variety of tools available in the market that can help companies understand their customers better.

1. Demographic Segmentation Tools

Demographic segmentation tools divide your audience based on demographic factors such as age, gender, income, education, marital status, occupation, etc. They allow you to understand the social and economic profile of your customers.

CriteriaExamples
AgeChildren, teenagers, adults, seniors
GenderMale, female
IncomeLow, middle, high
OccupationStudents, professionals, retirees
Family SizeSingle, married, family with children
EducationElementary, high school, college, graduate
ReligionChristian, Muslim, Hindu, Buddhist, Jewish.
EthnicityWhite, Black, Hispanic, Asian, Native American.
Criteria for Demographic Segmentation

Examples of tools for demographic segmentation:

2. Geographic Segmentation Tools

Geographic segmentation focuses on dividing the market based on location, such as country, region, city, or even zip code. Tools that segment customers by location can help you create marketing content specific to certain geographic areas.

CriteriaExamples
RegionNorth, South, East, West
CountryUnited States, Canada, China, India, France, etc.
CityNew York, Los Angeles, Chicago, London, Paris, Tokyo, etc.
ClimateTropical, temperate, cold
Urban/RuralUrban, suburban, rural
Criteria for Geographic Segmentation

Examples of tools for geographic segmentation:

3. Psychographic Segmentation Tools

These tools segment the market based on lifestyle, values, interests, personality traits, opinions, and other psychological criteria. Psychographic segmentation tools help businesses with a deeper understanding of customer motivations.

CriteriaExamples
LifestyleActive, adventurous, family-oriented, minimalist, hedonistic
ValuesEnvironmental, social, economic, traditional, progressive
InterestsHobbies, sports, entertainment, technology, travel
PersonalityExtroverted, introverted, analytical, creative, cautious
Social classUpper class, middle class, working class
Criteria for Psychographic Segmentation

Examples of tools for psychographic segmentation:

4. Behavioral Segmentation Tools

Behavioral segmentation tools track how customers interact with your brand and segment them accordingly. To achieve this, such tools use data on user behavior, such as purchase history, online activity, brand loyalty, usage rate, and more.

CriteriaExamples
Usage Rate‣ Heavy users,
‣ Light users,
‣ Non-users
Benefits soughtQuality, price, convenience, status, performance
LoyaltyBrand loyal, brand switchers
Purchase eventHolidays, special events, birthdays, anniversaries
User statusFirst-time users, repeat users, lapsed users
Criteria for Behavioral Segmentation

Examples of tools for behavioral segmentation:

5. Firmographic Segmentation Tools

For B2B companies, firmographic segmentation tools help divide the market based on company characteristics such as industry, company size, revenue, or location. This segmentation helps detect and target specific businesses effectively.

CriteriaExamples
Company Size‣ Small,
‣ Medium,
‣ Large,
‣ Enterprise
IndustryTechnology, healthcare, manufacturing, finance, retail
LocationRegional, national, international
Revenue‣ $1 million – $10 million
‣ $10 million – $50 million
‣ $50 million – $100 million
‣ More
Number of Employees‣ 1-10,
‣ 11-50,
‣ 51-500,
‣ 500-1000,
‣ 1000+
Criteria for Firmographic Segmentation

Examples of tools for firmographic segmentation:

6. Technographic Segmentation Tools

Technographic segmentation tools focus on the technology stack that companies use, such as specific software or hardware, cloud platforms, or development tools. It’s useful for tech companies or services selling to other businesses.

CriteriaExamples
Technology adoptionCloud computing, mobile devices, social media, artificial intelligence, Internet of Things
IT budgetLow, medium, high
Technology infrastructureOn-premises, cloud-based, hybrid
Criteria for Technographic Segmentation

Examples of tools for technographic segmentation:

There are numerous tools available in the market to help you organize your customer data better, but choosing one can be complicated. We compiled our top 6 segmentation tools below with details about the features, to help you decide better.


The Top 6 Segmentation Tools in 2024

While there are numerous tools to choose from, the ones below are the most effective and reputed.

Our top 6 picks for segmentation tools are:

  1. Google Analytics,
  2. Salesforce Marketing Cloud,
  3. Audiense,
  4. Adobe Experience Platform,
  5. Kissmetrics,
  6. Segment.

Detailed sections for each tool are posted below.


Google Analytics is the Best Tool for Web and App Behavioral Data

Google Analytics UI
The Google Analytics UI

Google Analytics is a powerful web analytics service offered by Google that tracks and reports website traffic. It is widely used by businesses to track user behavior on their websites and applications.

Google Analytics provides insights into demographics, geographic location, user engagement, and conversion tracking, offering marketers valuable user data. Its segmentation capabilities allow for flexibility when creating specialized segments.

Google Analytics Features

  1. Reporting: You get detailed insights into the demographics, interests, and geographic location of users.
  2. Behavior analysis: Track user interactions on your website, including page views, time spent on pages, and bounce rates.
  3. Conversion tracking: Measure how well your site fulfills goals, such as completed purchases or newsletter sign-ups.
  4. Custom segments: Create custom segments based on user behavior, demographics, or traffic sources to analyze specific user groups.
  5. E-commerce tracking: Google Analytics offers advanced features for tracking online sales, including product performance and shopping behaviors.
  6. Event tracking: Track specific user interactions like button clicks, video views, and file downloads.
  7. Integration with Google Ads: Seamlessly connect with Google Ads for effective remarketing campaigns and targeted advertising.

Salesforce Marketing Cloud Offers AI-Driven Segmentation

Salesforce Marketing Cloud
Customer journeys on Salesforce Marketing Cloud

Salesforce Marketing Cloud (SMC) is a comprehensive digital marketing platform that enables businesses to create targeted and personalized customer journeys.

It integrates data from various channels, including email, social media, and the web, to provide a unified view of customer interactions. The platform’s segmentation tools allow marketers to analyze customer data, develop insights, and execute targeted campaigns.

Salesforce Marketing Cloud Features

  1. Audience segmentation: Create detailed customer segments based on demographics, behaviors, and interactions across multiple channels.
  2. Journey Builder: You can design and automate personalized customer journeys, ensuring relevant content is delivered at every touchpoint.
  3. Email marketing: SMC has email marketing capabilities with advanced targeting, email A/B testing, and email performance tracking.
  4. Social media marketing: You can manage social media campaigns, track engagement, and analyze audience interactions.
  5. Data Management Platform (DMP): Integrate first-party and third-party data to create comprehensive customer profiles.
  6. Analytics: The analytics dashboard provides insights into campaign performance and customer behavior.
  7. Integration with Salesforce CRM: You get seamless integration with Salesforce CRM for a complete view of customer interactions and history.
  8. AI-powered insights: Leverage artificial intelligence through Salesforce Einstein for predictive analytics and automated recommendations.

Audiense is Great for Using Social Listening

Audiense Insights
Audiense Insights

Audiense is a social media analytics and audience intelligence platform that helps marketers gain deeper insights into their target audiences.

The platform’s core functionality is its ability to analyze social media data, particularly from Twitter, to identify and understand key audience segments. Audiense uses AI and machine learning algorithms to process vast amounts of social data, enabling users to discover valuable insights about their followers, customers, and potential leads.

These insights include:

  • Demographic information,
  • Interests,
  • Behaviors,
  • Influencers within specific communities.

Audiense Features

  1. Audience Insights: Analyze social media audiences to uncover demographics, interests, and engagement patterns.
  2. Segmentation: Create detailed audience segments based on psychographic data and social behaviors.
  3. Personas: Build customer personas to guide marketing strategies and campaign development.
  4. X Audience Insights: This feature focuses on X (formerly Twitter) data to analyze follower engagement and behavior.
  5. Campaign analysis: Evaluate the effectiveness of social media campaigns with comprehensive reporting and insights.
  6. Integration: You can connect Audiense with various marketing platforms for streamlined campaign execution and analysis.
  7. Social listening: The tool helps monitor social conversations and trends to identify potential audience segments and opportunities.
  8. Influencer identification: Discover key influencers within your audience to enhance outreach and engagement efforts.

Adobe Experience Platform is an All-in-One Segmentation Tool

Adobe Experience Platform Dashboard
Adobe Experience Platform Dashboard

Adobe Experience Platform is a customer experience management solution that enables organizations to create personalized customer experiences across all touchpoints.

It aggregates data from various sources to build a real-time customer profile, which informs marketing strategies and content delivery.

The suite encompasses several key products, including:

  1. Adobe Analytics: This is for data analysis,
  2. Adobe Target: This tool helps with personalization,
  3. Adobe Campaign: Campaign helps execute marketing automation,
  4. Adobe Advertising Cloud: A platform for advertising management.

These tools work together to provide organizations with a holistic view of their customer’s journey and interactions.

Adobe Experience Platform Features

  1. Real-time customer profiling: Aggregate and update customer data in real-time to create a comprehensive view of each customer.
  2. Segmentation: You can create dynamic audience segments based on behaviors, preferences, and demographics.
  3. Personalization tools: They help deliver personalized content and experiences across various channels, including web, email, and mobile.
  4. Data integration: You can integrate data from multiple sources, including CRM, social media, and web analytics, for a unified view.
  5. AI and machine learning: Adobe Sensei offers AI-driven insights and predictive analytics to optimize marketing strategies.
  6. Journey orchestration: Design and automate customer journeys based on real-time data and insights.
  7. API access: Use APIs to connect with other Adobe tools or third-party applications for enhanced functionality.

Kissmetrics Segments Using a Variety of Behavioral Data

Kissmetrics dashboard
The Kissmetrics dashboard

Kissmetrics is a behavioral analytics tool designed to help businesses understand customer behavior and track individual user actions over time. It focuses on providing insights into how users interact with products, enabling marketers to identify patterns and trends.

The platform’s core strength lies in its ability to track individual user behavior across multiple devices and over time, providing businesses with a comprehensive view of the customer journey.

Kissmetrics Features

  1. Customer tracking: You can track individual customer behavior over time, including actions, purchases, and engagement metrics.
  2. Segmentation: Create segments based on various criteria to analyze specific customer groups.
  3. Funnel analysis: Visualize customer journeys and identify drop-off points in the conversion funnel to optimize marketing efforts.
  4. Cohort analysis: Analyze groups of users over specific time frames to understand retention, churn, and engagement.
  5. A/B testing: You can test different variations of marketing campaigns.
  6. Integration: Kissmetrics can connect with various marketing tools and CRMs.
  7. Custom reports: Generate detailed reports that provide insights into user behavior.

Segment Unifies Your Customer Data

Segment Customer Data Platform
Segment: Behavioral Tracking

Segment is a Customer Data Platform (CDP) that enables businesses to collect, unify, and manage customer data from multiple sources.

By consolidating data from various touchpoints like websites, mobile apps, and CRMs, Segment helps organizations gain a comprehensive view of customer behavior. With its ability to segment audiences and integrate with marketing tools, Segment helps companies drive better engagement.

Features of Segment

  1. Data aggregation: The tool combines data from various channels for a complete view of each customer.
  2. Custom attributes: This feature allows you to define specific attributes to capture relevant customer information.
  3. Dynamic segmentation: Segment automatically creates segments based on real-time behavior.
  4. API: The API allows custom integrations with martech stacks.
  5. Multichannel personalization: With this, you can deliver consistent messaging across various channels.
  6. Dynamic content delivery: You can adjust content in marketing messages based on the customer segment.
  7. Customer journey tracking: It’s possible to monitor interactions throughout the customer journey.
  8. Predictive analytics: The tool helps anticipate customer behavior and preferences.

If you’re still wondering what tool would be best for your company, the next section covers popular segmentation methods used by different business types.


Segmentation Criteria in Different Industries

The choice of customer segmentation methods and criteria depends on the specific characteristics of a business and its target market.

For example, B2C businesses often focus on demographic and psychographic segmentation, while B2B businesses may prioritize firmographic and behavioral segmentation.

Similarly, the level of competition in an industry can influence the need for more granular segmentation to differentiate products or services. The type and quality of data available to a business can also influence its segmentation methods.

This table shares standard segmentation methods used by different types of businesses:

BusinessTypes of segmentation usedSegmentation criteria
Automotive manufacturer‣ Demographic,
‣ Firmographic,
‣ Behavioral.
‣ Age,
‣ Income,
‣ Occupation,
‣ Vehicle type,
‣ Purchase history,
‣ Maintenance frequency.
Streaming platform‣ Demographic,
‣ Behavioral,
‣ Psychographic.
‣ Age,
‣ Gender,
‣ Location,
‣ Viewing history,
‣ Preferred genres,
‣ Device usage.
Retail business‣ Demographic,
‣ Behavioral,
‣ Psychographic.
‣ Age,
‣ Gender,
‣ Income,
‣ Shopping frequency,
‣ Avg order value,
‣ Brand loyalty,
‣ Lifestyle.
Gaming company‣ Demographic,
‣ Behavioral,
‣ Psychographic.
‣ Age,
‣ Gender,
‣ Gaming platform,
‣ Game preferences,
‣ In-game spending habits,
‣ Social media engagement
Real estate agency‣ Demographic,
‣ Firmographic,
‣ Behavioral.
‣ Age,
‣ Income,
‣ Family status,
‣ Property type,
‣ Purchase history,
‣ Credit score,
‣ Location preferences.
Non-profit organization‣ Demographic,
‣ Psychographic,
‣ Behavioral.
‣ Age,
‣ Gender,
‣ Location,
‣ Causes donated for,
‣ Donation history,
‣ Volunteer involvement.
Gym‣ Demographic,
‣ Behavioral,
‣ Psychographic.
‣ Age,
‣ Gender,
‣ Fitness goals,
‣ Membership length,
‣ Class attendance,
‣ Social media engagement.
Insurance company‣ Demographic,
‣ Firmographic,
‣ Behavioral.
‣ Age,
‣ Gender,
‣ Occupation,
‣ Industry,
‣ Policy type,
‣ Claim history,
‣ Risk tolerance.
SaaS‣ Firmographic,
‣ Behavioral,
‣ Psychographic.
‣ Company size,
‣ Industry,
‣ Technology adoption rate,
‣ Product usage,
‣ IT budget,
‣ Decision-making process
Segmentation methods and criteria used by various industries

Using Segmentation Tools in Email Marketing

Good segmentation can transform your email marketing game; it enhances the effectiveness of different types of email campaigns. By implementing an email segmentation strategy, you can tailor your messages for your email marketing subscribers.

Many popular ESPs offer built-in segmentation tools that allow you to easily divide your email list into targeted customer segments. This makes it easier for businesses to send mass personalized emails.

Below, we explain what data to collect and how to segment your email marketing audience.

Step 1: Data Collection

To segment an audience, marketers first need to collect data on their subscribers.

This data can be gathered through:

  1. Sign-up forms: Information like name, age, gender, location, and interests can be collected during the sign-up process.
  2. Website activity: Track user behavior on a website, such as pages visited, time spent, and actions taken.
  3. Past purchases: Purchase history, including product types, frequency, and value, is crucial for segmenting based on buying behavior.
  4. Recipient engagement: This includes data on how subscribers interact with past email campaigns, such as open rates, click rates, and responses.
  5. Surveys and preferences: Collect insights directly from subscribers about their preferences, needs, and interests.

Step 2: Decide Segmentation Criteria

Once data is collected, email marketers can create segments using different methods, depending on what their goals are.

Common email segmentation methods include:

  1. Demographic Segmentation: This involves dividing subscribers by age, gender, income, job role, or location.
  2. Behavioral Segmentation: Group subscribers based on their actions, such as recent purchases, website activity, or email engagement.
  3. Engagement-based Segmentation: Divide subscribers based on how often they open, click, or interact with emails.
  4. Geographic Segmentation: Use location data to segment subscribers.
  5. Psychographic Segmentation: This method requires data on interests, values, or lifestyle data, which may be collected through surveys or inferred from behavior.

Step 3: Email Personalization and Targeted Messaging

After segments are created, email senders can further customize email content for each specific group.

This involves:

  1. Using email personalization: Use the subscriber’s name, interests, or location in the subject line to grab their attention.
  2. Sending relevant email content: Provide content that is specifically tailored to the segment’s preferences or needs. For example, send product recommendations based on past purchases or content relevant to their industry.
  3. Adding dynamic email content: Create emails that have sections of content dynamically populated based on the recipient’s data. This allows you to show different images, offers, or product recommendations to different segments within the same email.
  4. Modify email design: Different segments may respond better to certain layouts and email designs.

Step 4: Automation

Email marketing platforms allow for automated email workflows to deliver segmented email campaigns at the right time.

With email marketing automation, you can run email campaigns such as:

  1. Abandoned cart emails: Send an abandoned cart reminder to shoppers who didn’t complete a purchase.
  2. Email drip campaigns: These are automated sequences of emails that are tailored to a segment’s stage in the customer lifecycle.
  3. Email nurture campaigns: Curate customer journeys through your email marketing funnel.
  4. Re-engagement campaigns: Send targeted emails to inactive subscribers with personalized content aimed at winning them back.
  5. Welcome email campaigns: When a new user signs up on your website, you can automatically send them a welcome email.
  6. Email surveys: Collect feedback from your subscribers at regular intervals to help you optimize customer segments.
  7. Holiday email campaigns: Celebrate the festive season and drive sales with holiday emails.
  8. Trigger emails: Automatically send emails based on specific behaviors.
  9. Transactional emails: Use these emails to immediately update a customer about a recent purchase or changes to their account.

Step 5: Tracking Data and Optimization

After sending segmented campaigns, it’s important to track and analyze email campaign metrics to understand how each segment is performing.

Email marketers should monitor:

  1. Open Rate: This tells you how many subscribers from each segment opened the email.
  2. Click-Through Rate (CTR): The percentage of recipients who clicked on links within the email.
  3. Conversion Rate: The conversion rate is the number of subscribers who took a desired action.
  4. Email Unsubscribe Rate: This metric helps identify segments that may be less responsive or prone to unsubscribing, which helps fine-tune messaging.
  5. Spam Complaints: Track these diligently to ensure your readers don’t think of you as a spam email sender.

Step 6: Enhance Your Technical Knowledge

It’s a great idea to be as aware of as many technical topics in email marketing as you possibly can.


Campaign Refinery Offers Robust Segmentation and Tagging Tools

At Campaign Refinery, we understand how important customer segmentation is — it’s a critical factor in determining how well your email campaigns perform. This is why Campaign Refinery offers a wide range of segmentation options, allowing marketers to create highly granular segments.

With our segmentation tools, you can deliver highly personalized messages that resonate with specific customer segments. You can even combine different segments using our Audience Groups feature, helping you reap the benefits of engagement and conversions from multiple segments.

Club the above features with our advanced tagging system, and you can easily target specific groups of subscribers on your list. You also get a powerful automation builder and webhooks to send the right messages at the right time. Campaign Refinery even integrates seamlessly with your martech stack to work with CRM systems or analytics tools.

And did we mention that Campaign Refinery offers you the best email deliverability in the industry?

Discover the future of email marketing today — check out our signup page to join Campaign Refinery!

Similar Posts