Viewpoint: rethinking segmentation for practitioners – a practice-based framework for services marketing

Purpose This study aims to propose a segmentation approach that bridges the gap between academic rigor and practical applicability in services marketing. It analyzes the challenges of contemporary, statistical segmentation models and advocates for a conceptual, practice-based approach aligned with how consumers “do services.” Design/methodology/approach This paper reviews five decades of statistical segmentation research, highlighting its strengths and challenges. It incorporates practitioner insights to explore the barriers of applying segmentation models in services marketing. Building on a review of the services marketing literature, the study develops a practice-based segmentation framework grounded in a “pen-and-paper” approach. Findings While advanced statistical segmentation techniques meet academic standards, they often prove impractical for firms lacking computational resources. Practitioners tend to rely on automated tools that segment customers based on behavioral and lifestyle variables. A return to conceptual, practice-based segmentation provides a more effective alternative by balancing analytical depth with usability. The proposed practice-based framework identifies four operative dimensions: (1) social vs. individual practices, (2) customization, (3) modality and (4) intensity. The framework allows consumers to shift between practice-based segments and accommodates different combinations of these dimensions. Originality/value This viewpoint highlights the gap between segmentation research and real-world application. By incorporating practitioner insights and advocating for a practice-based approach, it provides an alternative to purely data-driven models and offers a segmentation framework that is both theoretically robust and practically feasible.