What is outlet segmentation?
Outlet segmentation is the grouping of the outlets in a market into segments that share the attributes that matter to your sales model, such as channel, venue type, price level, size, ownership or what is on the menu, so each segment gets its own range, service level and sales approach; DashLeads tracks 20M+ venues that can be segmented this way. The opportunity is a segmentation in your own words that tells you where you can win and where you are not winning today.
The trusted intelligence layer for teams selling to Hospitality & Retail
How to segment outlets
- Start from the decision. Write down what will change per segment: the range, the visit cadence, the terms, rep or key account. A segment that changes nothing is a label, not a segment.
- Pick the attributes that predict that decision: channel (see channel mapping), venue type and cuisine, price level, size or activity, ownership, menu signals.
- Define each segment by a rule anyone can read, such as independent cocktail bars at an upper-mid price level.
- Assign each outlet to exactly one segment and keep a remainder segment, so the segments add up to the outlet universe.
- Check the sizes. Merge segments too small to act on.
Segment share (%) = outlets in the segment / outlets in the universe x 100
The same share computed on your accounts shows where your book over- or under-represents the market.
Worked example
A premium spirit brand segments the 3,000 on-premise outlets in one city.
| Segment | Rule | Outlets | Share | Brand accounts | Coverage |
|---|---|---|---|---|---|
| Premium cocktail | Independent cocktail or hotel bar, upper price | 240 | 8% | 96 | 40% |
| Neighbourhood bar | Independent bar or pub, mid price | 900 | 30% | 180 | 20% |
| Casual dining | Independent restaurant with a drinks list | 1,260 | 42% | 126 | 10% |
| Group-run | Any type, part of a group | 300 | 10% | 60 | 20% |
| Other | Everything else | 300 | 10% | 0 | 0% |
The brand covers 40% of premium cocktail venues and 10% of casual dining. If the plan is premium-led, the 144 cocktail venues it does not serve are the priority list; casual dining is a range and distributor question rather than a rep visit. Group-run outlets go to the key account team whatever their type.
Segmentation vs tiering vs channel
Segmentation groups outlets by what they are; outlet tiering ranks them by what they are worth to you (A, B, C). They work together: segment first so like is compared with like, then tier inside each segment. A tier-A neighbourhood pub and a tier-A cocktail bar need different visits.
A channel is not a segment either. Channel mapping gives each outlet one standard label; segmentation builds the groups your plan runs on, and channel is usually one input among several.
Segmenting in your own names
Most segmentations die in a spreadsheet because the labels in the data are not the words the team uses. Dashmote's AI sorts outlets into segments in your own names, such as Street food or Premium on-trade, by reading each outlet's channel, menu, price and ownership data, see why each outlet landed where it did, and use the segment as a filter, a column and an export across the team. See custom outlet segmentation.
Frequently asked questions
What are the most common outlet segmentation criteria?
The most common criteria are channel, venue type or cuisine, price level, size or activity, ownership (independent, chain or group) and menu signals such as the categories and brands listed. Use the ones that change how you sell.
How many outlet segments should I have?
Few enough that every rep can name them and each one changes something in the plan, typically five to twelve. A segment that gets the same range, visit cadence and terms as its neighbour should be merged.
What is the difference between a channel and a segment?
A channel is a broad type of outlet, such as restaurant, bar, cafe or hotel; a segment is a group built for your plan, which can split a channel (premium cocktail bars) or cut across channels (late-night venues).
How often should outlet segmentation be reviewed?
Review the definitions once a year with the plan, and re-assign outlets whenever their data changes, because venues reprice, change concept, open and close all year.
Is outlet segmentation the same as customer segmentation?
No. Customer segmentation groups the accounts you already serve; outlet segmentation groups the whole outlet universe, customers included, so you can see the segments where you are missing.