loyalty-agent-service/docs/specs/onetargeting/segmentation.md

title, type, status, domain

title	type	status	domain
Segmentation	OpenSpec	Draft	OneTargeting

Segmentation

Requirement Definition

Segmentation is a process to divide a customer base into smaller groups, providing a way to narrow down the target audience based on the types of products or services the customers have previously purchased. This allows businesses to create more personalized and effective marketing strategies for each segment, rather than adopting a one-size-fits-all approach. In the system, a segment is a combination of one or more criteria. The same criteria set may be reused multiple times, allowing an efficient way to set up targeted customers.

Process Flow

Trigger

• User accesses the OneTargeting Module to create or update a new segment.

Pre-Conditions

• Users must have access rights in the Segmentation module.
• Depending on access rights, users can view, add, edit, or manually approve.
• All criteria are defined as attributes and are available for setup.

Business Rules

• The OLS system uses Query Builder to build queries for segmentation.
• Business segments target customers using the following criteria combinations:

Criteria Matrix

Segment Group	Criteria Group	Combination by Following Criteria	Segment Example
Demographic Segmentation	Customer Profile	Age	Life Cycle segment: Children (0-14), Youth (15-24), Adults (24-64), Seniors (65+)
Demographic Segmentation	Customer Profile	Last Name
Demographic Segmentation	Customer Profile	First Name
Demographic Segmentation	Customer Profile	Income	Income segment: High-Income, Middle-Income, Low-Income
Demographic Segmentation	Customer Profile	Gender	Male, Female
Demographic Segmentation	Customer Profile	Marital Status	Single, Married
Demographic Segmentation	Customer Profile	DOB	Generation segment: Gen Z (1997-2012), Gen Y (1981-1996), Gen X (1965-1980), Gen W (1946-1964)
Demographic Segmentation	Customer Profile	Location (Country/State/City/Zip Code)	Geography segment: International, Urban, Suburban, Mountain
Demographic Segmentation	Customer Profile	Customer's Tenure	Customer Tenure Segment (based on Registration): New (<1 yr), Early-tenured (1-2 yrs), Mid-Tenured (2-5 yrs), Long-tenured (>5 yrs)
Demographic Segmentation	Customer Profile	Account's Tenure	Account Tenure Segment (based on AOD): New (<1 yr), Early-tenured (1-2 yrs), Mid-Tenured (2-5 yrs), Long-tenured (>5 yrs)
Demographic Segmentation	Customer Profile	Account's Status
Demographic Segmentation	Customer Profile	Next AOD
Demographic Segmentation	Customer Profile	Customer's status
Behavior Segmentation	Transaction	Last transaction / Integration	Churned customer: Last transaction > 6 months ago and status is active
Behavior Segmentation	Transaction	Transaction Frequency	Total number of transactions or Average transaction frequency in a specific period (day/week/month/quarter/year). Segment: High-Value, Medium-Value, Low-Value
Behavior Segmentation	Transaction	Customer Recency	When was the last transaction/integration
Behavior Segmentation	Transaction	Total spending value	Total net transaction amount
Behavior Segmentation	Transaction	Transaction Date	Peak-Time customer (special day, weekend, midnight). Consistent-Time Customers (first day of month). Flexible-Time Customers (specific day)
Behavior Segmentation	Transaction	Transaction Time
Behavior Segmentation	Transaction	Merchant (Corporation/Chain/Store/MCC)	Used with another criteria or alone to create specific segments
Behavior Segmentation	Transaction	Merchant Group
Behavior Segmentation	Transaction	Transaction Description
Behavior Segmentation	Transaction	Transaction Category
Behavior Segmentation	Transaction	Transaction Gross Amount
Behavior Segmentation	Transaction	Transaction Nett Amount
Flexible Segment	Attribute	Attribute Criteria
Psychographic Segmentation	Item	Favorite Category	Life Style segment, Interest segment, Opinion segment
Psychographic Segmentation	Item	Favorite Item

Note: Psychographic segmentation data will be collected from surveys upon OneDisplay implementation.

Post-Conditions

• Each segment is used to define the targeting customer in the marketing module.