A practical yet meaningful approach to customer segmentation

Abstract

This paper introduces the concept of the Customer Value Matrix, a customer segmentation approach that is especially well‐suited for small retail and service businesses. The discussion offers insights into the reasons for the development of this practical approach, a concrete methodology for its implementation, and strategic and tactical applications of the concept. The material is supported with strong evidence from “real‐world” examples featuring a variety of small retail and service businesses. The paper concludes with a discussion of the managerial implications for companies that manage chains of small retail or service businesses as to how they can take advantage of local relationship marketing.

Citation

Marcus, C. (1998), "A practical yet meaningful approach to customer segmentation", Journal of Consumer Marketing, Vol. 15 No. 5, pp. 494-504. https://doi.org/10.1108/07363769810235974