What does segmenting data involve?

Segmenting data involves dividing a dataset into smaller groups based on specific criteria. This process allows analysts to categorize and analyze data more effectively by focusing on particular characteristics or attributes within the data. For example, a business might segment its customer data based on age, location, or purchasing behavior to gain insights into different customer groups and tailor marketing strategies accordingly.

By segmenting the data, analysts can identify patterns and trends that may not be significant when viewing the dataset as a whole. This targeted analysis can lead to more meaningful insights and more effective decision-making. Segmenting data is often a foundational step in data analysis, allowing for more straightforward comparisons and evaluations of different segments, which can lead to improved outcomes in various applications, such as marketing, finance, and operations.