What role does customer segmentation play in revenue optimization?

Customers are rarely homogenous; each segment values your product differently and reacts to price changes in its own way. By clustering buyers on traits such as usage intensity, industry, or willingness to pay, you can come up with offers that resonate more deeply. Moreover, segmentation lets you raise prices for high‑value cohorts without alienating price‑sensitive groups and lift total revenue. It also guides promotional timing, discount depth, and packaging decisions. Therefore, robust segmentation turns broad averages into actionable insights for smarter, more profitable pricing.