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Customer Segmentation

​Customer segmentation involves sorting customers into groups based on similar characteristics. This process leads to an understanding of the differences among customer groups. 


Segmentation helps service groups understand:

  • Who is ordering, receiving, and using the products/services? Similarly, who is not?
  • What categories of products/services are delivered to which customers? 
  • Are particular customer segments using certain products/services more than others? If so, why?
  • Has the delivery of products/services increased, decreased, or remained the same for customer segments? Why have these changes occurred?
  • How can a service group tailor product/service offerings to better meet the needs of its customers?
  • Do service group IT systems provide enough information to answer these questions?

​Often, the data to answer these questions are available but not examined. These data may provide some valuable insight into decisions regarding future product/service offerings (e.g., specific products offered, service hours, etc.).