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

Burberry’s Data Analyst role in London required experience with customer segmentation alongside cohort analysis and experimentation. The employer expected the analyst to apply appropriate methods with support from the wider team. This makes segmentation a practical analytical choice, with the grouping method selected to suit the question being investigated. Search local jobs for “customer segmentation”.

References

Filed under

Luxury is the new lingua franca that brings the world together in shared dreams of design, craftsmanship, heritage, and impeccable service.

Icons of Luxury In English

Explore the collection

Country and Language