# Geodemographic segmentation

In this tutorial, we are gonna see what is Geodemographic segmentation and where do we use is.

## What is Geodemographic segmentation

This can be better explained with an example, suppose we are taking a random sample of customers in a bank and we gather all the information of these customers like age, gender,color they like (this is just for better explanation), how many products they have with the bank, whether they have credit card, how long they have been with the bank etc . And suppose we are gonna track them based on their gender and color they like, just like the image below (fig1).

now after tracking these customers for 6 months, we have how many customers stayed and how many left (fig2).

Now based on the above image we get to know that 3/6 the women whose favorite color is red, 2/6 th men whose favorite color is purple left the bank, and 1/6 th women whose favorite color was green left the bank. Based on this information we can predict the trend for the next batch of customers. As shown in the image below

By segmenting in this form we will able to easily understand and perform the necessary steps to stop them from leaving.

So, in a nutshell, Geodemographical segmentation takes the characteristics (i.e gender, the color they like) and segment them or group them for easy churning