Luxury Lexicon A definition

Customer segmentation

Grouping people by relevant characteristics or behaviour to make communication and service more appropriate.

Customer segmentation turns a customer base into groups that share characteristics relevant to a business decision. A team first chooses criteria, such as purchase behaviour, location or needs, then uses customer data to identify who belongs in each group. Those groups can guide different messages, sales approaches or service priorities. Rule-based segments can change as customers meet or stop meeting their conditions. The useful distinction is between grouping customers for a specific purpose and treating everyone as a single audience. Segments should be refined as the underlying data and customer behaviour change.

In job listings

Gucci’s Team Manager role in Vancouver required using the company’s consumer management client segmentation strategy to achieve business objectives. The manager could use the resulting customer groups to plan retail activity. It does not specify how Gucci defined its groups, so the example supports the use of an established strategy without supplying its criteria. Search local jobs for “customer segmentation”.

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