Six types of customer segmentation for retail

Darryl Bachmeier
Mar 30, 2019

Each buyer is different, and therefore their preferences vary, so it is necessary to know the types of customer segmentation for retail and thus be able to provide a more personalized experience.

Why is customer segmentation important for retail?

Before delving into the types of customer segmentation for retail, it is necessary to understand the context of this, which can be quite complex and that is why we will try to define it through a relatively simple example.

For example:

Suppose that two different clients identified as A and B, which are of the same social class and with similar characteristics, when carrying out a data analysis system can obtain relevant information of their consumption during the last weeks. Let’s say that customer A begins to show interest in clothes and sports shoes, while customer B starts buying accessories for gardening. What is translated in that within the same social class there are the multiplicity of preferences and very different consumption habits.

So if the retail is only limited to offer, sunglasses at the price of the offer, following the recommendations made by studies made to the middle class, the result would not provide a better experience for customers A and B.

This is because an exclusive pattern does not govern the behavior of consumers and this forces retailers to have tools that allow them to measure more personalized for each client.

Currently, it is essential to invest in digital tools capable of measuring each customer-related data to really know and offer a more personalized experience to guide them in the purchase process and generate maximum satisfaction.

One of the systems with the highest demand in this area corresponds to the one developed by SalesForce Data Drive Solutions, which within its packages of solutions adapted to the retail sector offer the advanced level People count.

Its use allows you to take full advantage of the trend of the “Store Driven by Data,” knowing in detail the trip of your customers in addition to giving context to the experience of these generating the necessary data to increase sales significantly. What are the types of customer segmentation for retail?

The current trend indicates that customer segmentation should be based on their purchasing habits and spending levels.

RMF One of the most used and easy to apply customer segmentation methods is called RFM. To perform the analysis of the customer classification information, entrepreneurs use the following variations:

Receipt Recency is a term that refers to the ability of the human being to remember the last items of a list of objects. In this case, it corresponds to the number of days and hours that have elapsed since the customer made the previous purchase.

Frequency It is the number of times the customer made purchases over a period of time, on average. For example; the amount of purchases made per month or per week.

Money (Money) Measures the amount of money spent by the customer based on their total purchases made during the analysis time

Benefits of using RFM

Allows the interpretation of data and the application of strategies in a simple way. Can be easily integrated into the usual promotional dynamics in a marketing area, allowing to determine which segments are targeted or which ones respond best to the offer. It goes beyond demographic aspects, enabling to obtain the information of each client in a fast and timely manner.

Other types of customer segmentation for retail

Stock Retailers perform calculations on the stock of merchandise required but based on the detailed analysis of those products with the highest sales rate, differentiating from traditional methods based on the forecast of the inventory and the available space.

Special offers It is about creating promotions aimed at those consumers of greater value, to win their loyalty and encourage them to increase their spending. It differs from the traditional method in which promotion was aimed at the general public.

Marketing and Advertising Retailers have chosen to analyze the impact of their campaigns on key consumers, taking a more specific view of the results of their advertising and marketing campaigns.

Purchase experience The possibilities of knowing each client allow you to segment them by having privileged information about your preferences, giving rise to a truly personalized shopping experience.

Loyalty and communication programs This method is also used to segment customers, focusing their efforts on rewarding the most loyal and ensuring they remain comfortable with the store.


In modern retail, it is essential to know each client as best as possible since, based on this information, it will be possible to give them what they really need and provide the best shopping experience.

Segmentation is a key factor since through it becomes possible to guide specific strategies to attend to the client in a more personal way and predict their buying habits, as well as to ensure that they stay faithful and increase their purchase volumes in the store.

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