UK Retailers Customer Segmentation
Customer segmentation refers to a practice of dividing a customer base into groups of individuals who are similar in specific ways such as age, gender, interests, spending habits, and so on.
Once customer segmentation is done it allows companies to target groups effectively, and allocate marketing resources in the best way.
SnapShop - FSP's retail database-uses bespoke customer classification called FISH. On SnapShop retailers are also classified by price, primarily Higher, Middle and Lower.
FSP's Customer Segmentation (FISH) for clothing and footwear is done using a two dimensional matrix of shopper attitudes. One axis relates to attitudes to Self, in particular, the age-related values that are to be projected. 5 broad groups, labelled Young, Assured, Family, Classic and Old, have been identified. The other axis relates to the purchase itself, reflecting the message which the purchaser wishes it to convey about her/himself. There are four Purchase perceptions - Fashion, Individual, Safe or Homely. The matrix contains 20 cells, some of which are null, being self-contradictory e.g. Family Fashion. In addition, some cells, particularly the Old and Homely, are not the predominant group in any multiple retailers. There are therefore 10 valid cells into which retailers can be classified:
- YF - Young Fashion
- YI - Young Individual
- YS - Young Safe
- AF - Assured Fashion
- AI - Assured Individual
- AS - Assured Safe
- FI - Family Individual
- FS - Family Safe
- CI - Classic Individual
- CS - Classic Safe
- OH - Old Homely
Armed with information like retailer's target customer, their price stance, which gender or age group their offering is most prevalent in, their location and the market sector they operate in makes it easier to gain a thorough understanding of a retailer. If you are a shopping centre owner this information is handy to understand if a retailer is going to fit your shopping centre. Will it fit in with your other tenants? SnapShop's retailer classification is the answer to just these types of questions.
Click here to view a sample record with customer segmentation and price stance for Next.