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What is the difference between Segmentation and Personalization?

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What is the difference between segmentation and personalization? This is the question that came up during one of the webinar on personalization by Optimizely. This blog post is for those who have the same question. Basic definition of Segmentation is  - division into separate parts or sections.  For the purpose of marketing, it is a processing of grouping customer and prospects into similar groups based on various criteria such as demographic, geo, behavioral and psychographics.  You can use one or more of such attributes to define your segment.  The purpose of segmentation is to understand about a group (segment), and develop marketing strategy to better target those segments.  Personalization is providing marketing messages and/or experience that is tailored based on a customer’s needs or preferences.  Personalization can be very basic that can start from simply recognizing the person by name or it can be very complex that includes all sorts of data abou...