Personalization Glossary

At PSYKHE, we're obsessed with the why: Why do we like the things we like? Why does one person like a pair of shoes, a sofa, a travel destination, or a song, while someone else does not? Understanding all the factors that drive individual taste, including personality and psychographic data, enables us to create the world's most sophisticated recommendation engine. After all, you can't personalize without personality. Shaping a stellar recommendation strategy is a big job, so to help you grasp what a complete AI personalization blueprint for your business entails, we've collated definitions related to personalization here.

Customer Segmentation

A standard pillar of an effective marketing strategy, customer segmentation is simply the technique of dividing a company's customers into groups that share a similarity among customers in each group. The overarching goal of customer segmentation is to be able to make decisions about how to engage with customers in each of the segments in order to maximize both the value to the customer, and of each customer to the company. When carrying out customer segmentation, companies can separate consumers by personality traits, psychographic data, certain interests, and habits, as well as a host of other demographic factors, such as where they live, their income levels, and age bracket.