What is the purpose of segmentation in data analysis?

Segmentation in data analysis involves dividing a large dataset into smaller, more manageable groups based on shared characteristics or criteria. This approach allows for more focused and targeted analysis, making it easier to identify patterns, trends, and insights within specific groups. By grouping similar data points, analysts can tailor their analyses and strategies to the unique attributes of each segment, leading to more effective decision-making.

For example, in a marketing context, segmentation can help identify different customer groups based on demographics, purchasing behavior, or preferences. This enables businesses to create tailored marketing campaigns that resonate with each specific audience, improving engagement and conversion rates. Overall, the purpose of segmentation is to enhance the accuracy and relevance of data analysis, providing a deeper understanding of the underlying dynamics in the data.