Summarize the importance of customer segmentation in two sentences.
Customer segmentation is an essential component of marketing strategy because it allows businesses to tailor their offerings to customer groups with similar needs and preferences. By understanding their target customer base, companies can efficiently allocate resources and provide personalized experiences that are more likely to result in long-term customer loyalty.
Below is an instruction that describes a task. Write a response that appropriately completes the request.

### Instruction:
Summarize the importance of customer segmentation in two sentences.

### Response:
Customer segmentation is an essential component of marketing strategy because it allows businesses to tailor their offerings to customer groups with similar needs and preferences. By understanding their target customer base, companies can efficiently allocate resources and provide personalized experiences that are more likely to result in long-term customer loyalty.