Data segmentation is the process of dividing a dataset into smaller, more manageable groups based on specific criteria. This technique helps organizations analyze and understand their data more effectively by focusing on particular segments that share common characteristics, such as demographics, behaviors, or preferences. By using data segmentation, businesses can tailor their marketing strategies and improve customer experiences. For example, a company might segment its customer base into groups like age, location, or purchase history to create targeted campaigns that resonate with each audience, ultimately leading to better engagement and increased sales.