diff --git a/firebase-segmentation/src/androidTest/java/com/google/firebase/segmentation/FirebaseSegmentationInstrumentedTest.java b/firebase-segmentation/src/androidTest/java/com/google/firebase/segmentation/FirebaseSegmentationInstrumentedTest.java
index 19498782a78..034ee1eb339 100644
--- a/firebase-segmentation/src/androidTest/java/com/google/firebase/segmentation/FirebaseSegmentationInstrumentedTest.java
+++ b/firebase-segmentation/src/androidTest/java/com/google/firebase/segmentation/FirebaseSegmentationInstrumentedTest.java
@@ -127,7 +127,8 @@ public void testUpdateCustomInstallationId_CacheOk_BackendOk() throws Exception
   }
 
   @Test
-  public void testUpdateCustomInstallationId_CacheOk_BackendError() throws InterruptedException {
+  public void testUpdateCustomInstallationId_CacheOk_BackendError_Retryable()
+      throws InterruptedException {
     FirebaseSegmentation firebaseSegmentation =
         new FirebaseSegmentation(
             firebaseApp, firebaseInstanceId, actualCache, backendClientReturnsError);
@@ -150,6 +151,31 @@ public void testUpdateCustomInstallationId_CacheOk_BackendError() throws Interru
         .isEqualTo(CustomInstallationIdCache.CacheStatus.PENDING_UPDATE);
   }
 
+  @Test
+  public void testUpdateCustomInstallationId_CacheOk_BackendError_NotRetryable()
+      throws InterruptedException {
+    when(backendClientReturnsError.updateCustomInstallationId(
+            anyLong(), anyString(), anyString(), anyString(), anyString()))
+        .thenReturn(SegmentationServiceClient.Code.CONFLICT);
+    FirebaseSegmentation firebaseSegmentation =
+        new FirebaseSegmentation(
+            firebaseApp, firebaseInstanceId, actualCache, backendClientReturnsError);
+
+    // Expect exception
+    try {
+      Tasks.await(firebaseSegmentation.setCustomInstallationId(CUSTOM_INSTALLATION_ID));
+      fail();
+    } catch (ExecutionException expected) {
+      Throwable cause = expected.getCause();
+      assertThat(cause).isInstanceOf(SetCustomInstallationIdException.class);
+      assertThat(((SetCustomInstallationIdException) cause).getStatus())
+          .isEqualTo(SetCustomInstallationIdException.Status.DUPLICATED_CUSTOM_INSTALLATION_ID);
+    }
+
+    CustomInstallationIdCacheEntryValue entryValue = actualCache.readCacheEntryValue();
+    assertThat(entryValue).isNull();
+  }
+
   @Test
   public void testUpdateCustomInstallationId_CacheError_BackendOk() throws InterruptedException {
     FirebaseSegmentation firebaseSegmentation =
diff --git a/firebase-segmentation/src/main/java/com/google/firebase/segmentation/FirebaseSegmentation.java b/firebase-segmentation/src/main/java/com/google/firebase/segmentation/FirebaseSegmentation.java
index 2008ea09359..85adf2fb708 100644
--- a/firebase-segmentation/src/main/java/com/google/firebase/segmentation/FirebaseSegmentation.java
+++ b/firebase-segmentation/src/main/java/com/google/firebase/segmentation/FirebaseSegmentation.java
@@ -128,7 +128,7 @@ private Void updateCustomInstallationId(String customInstallationId)
       instanceIdResult = Tasks.await(firebaseInstanceId.getInstanceId());
     } catch (ExecutionException | InterruptedException e) {
       throw new SetCustomInstallationIdException(
-          "Failed to get Firebase instance id", Status.CLIENT_ERROR);
+          Status.CLIENT_ERROR, "Failed to get Firebase instance id");
     }
 
     boolean firstUpdateCacheResult =
@@ -140,7 +140,7 @@ private Void updateCustomInstallationId(String customInstallationId)
 
     if (!firstUpdateCacheResult) {
       throw new SetCustomInstallationIdException(
-          "Failed to update client side cache", Status.CLIENT_ERROR);
+          Status.CLIENT_ERROR, "Failed to update client side cache");
     }
 
     // Start requesting backend when first cache updae is done.
@@ -164,11 +164,22 @@ private Void updateCustomInstallationId(String customInstallationId)
                     instanceIdResult.getId(),
                     CustomInstallationIdCache.CacheStatus.SYNCED));
         break;
-      case HTTP_CLIENT_ERROR:
-        throw new SetCustomInstallationIdException(Status.CLIENT_ERROR);
+      case UNAUTHORIZED:
+        localCache.clear();
+        throw new SetCustomInstallationIdException(
+            Status.CLIENT_ERROR, "Instance id token is invalid.");
       case CONFLICT:
-        throw new SetCustomInstallationIdException(Status.DUPLICATED_CUSTOM_INSTALLATION_ID);
+        localCache.clear();
+        throw new SetCustomInstallationIdException(
+            Status.DUPLICATED_CUSTOM_INSTALLATION_ID,
+            "The custom installation id is used by another Firebase installation in your project.");
+      case HTTP_CLIENT_ERROR:
+        localCache.clear();
+        throw new SetCustomInstallationIdException(Status.CLIENT_ERROR, "Http client error(4xx)");
+      case NETWORK_ERROR:
+      case SERVER_ERROR:
       default:
+        // These are considered retryable errors, so not to clean up the cache.
         throw new SetCustomInstallationIdException(Status.BACKEND_ERROR);
     }
 
@@ -176,7 +187,7 @@ private Void updateCustomInstallationId(String customInstallationId)
       return null;
     } else {
       throw new SetCustomInstallationIdException(
-          "Failed to update client side cache", Status.CLIENT_ERROR);
+          Status.CLIENT_ERROR, "Failed to update client side cache");
     }
   }
 
@@ -204,7 +215,7 @@ private Void clearCustomInstallationId() throws SetCustomInstallationIdException
       instanceIdResult = Tasks.await(firebaseInstanceId.getInstanceId());
     } catch (ExecutionException | InterruptedException e) {
       throw new SetCustomInstallationIdException(
-          "Failed to get Firebase instance id", Status.CLIENT_ERROR);
+          Status.CLIENT_ERROR, "Failed to get Firebase instance id");
     }
 
     boolean firstUpdateCacheResult =
@@ -214,7 +225,7 @@ private Void clearCustomInstallationId() throws SetCustomInstallationIdException
 
     if (!firstUpdateCacheResult) {
       throw new SetCustomInstallationIdException(
-          "Failed to update client side cache", Status.CLIENT_ERROR);
+          Status.CLIENT_ERROR, "Failed to update client side cache");
     }
 
     String iid = instanceIdResult.getId();
@@ -231,9 +242,15 @@ private Void clearCustomInstallationId() throws SetCustomInstallationIdException
       case OK:
         finalUpdateCacheResult = localCache.clear();
         break;
+      case UNAUTHORIZED:
+        throw new SetCustomInstallationIdException(
+            Status.CLIENT_ERROR, "Instance id token is invalid.");
       case HTTP_CLIENT_ERROR:
-        throw new SetCustomInstallationIdException(Status.CLIENT_ERROR);
+        throw new SetCustomInstallationIdException(Status.CLIENT_ERROR, "Http client error(4xx)");
+      case NETWORK_ERROR:
+      case SERVER_ERROR:
       default:
+        // These are considered retryable errors, so not to clean up the cache.
         throw new SetCustomInstallationIdException(Status.BACKEND_ERROR);
     }
 
@@ -241,7 +258,7 @@ private Void clearCustomInstallationId() throws SetCustomInstallationIdException
       return null;
     } else {
       throw new SetCustomInstallationIdException(
-          "Failed to update client side cache", Status.CLIENT_ERROR);
+          Status.CLIENT_ERROR, "Failed to update client side cache");
     }
   }
 }
diff --git a/firebase-segmentation/src/main/java/com/google/firebase/segmentation/SetCustomInstallationIdException.java b/firebase-segmentation/src/main/java/com/google/firebase/segmentation/SetCustomInstallationIdException.java
index 3c957ce3294..2291c078a03 100644
--- a/firebase-segmentation/src/main/java/com/google/firebase/segmentation/SetCustomInstallationIdException.java
+++ b/firebase-segmentation/src/main/java/com/google/firebase/segmentation/SetCustomInstallationIdException.java
@@ -45,13 +45,13 @@ public enum Status {
     this.status = status;
   }
 
-  SetCustomInstallationIdException(@NonNull String message, @NonNull Status status) {
+  SetCustomInstallationIdException(@NonNull Status status, @NonNull String message) {
     super(message);
     this.status = status;
   }
 
   SetCustomInstallationIdException(
-      @NonNull String message, @NonNull Status status, Throwable cause) {
+      @NonNull Status status, @NonNull String message, Throwable cause) {
     super(message, cause);
     this.status = status;
   }
diff --git a/firebase-segmentation/src/main/java/com/google/firebase/segmentation/remote/SegmentationServiceClient.java b/firebase-segmentation/src/main/java/com/google/firebase/segmentation/remote/SegmentationServiceClient.java
index 86b5f945205..6d0436d8b24 100644
--- a/firebase-segmentation/src/main/java/com/google/firebase/segmentation/remote/SegmentationServiceClient.java
+++ b/firebase-segmentation/src/main/java/com/google/firebase/segmentation/remote/SegmentationServiceClient.java
@@ -41,15 +41,15 @@ public class SegmentationServiceClient {
   public enum Code {
     OK,
 
-    HTTP_CLIENT_ERROR,
-
     CONFLICT,
 
+    UNAUTHORIZED,
+
     NETWORK_ERROR,
 
-    SERVER_ERROR,
+    HTTP_CLIENT_ERROR,
 
-    UNAUTHORIZED,
+    SERVER_ERROR,
   }
 
   @NonNull
@@ -100,6 +100,9 @@ public Code updateCustomInstallationId(
         case 409:
           return Code.CONFLICT;
         default:
+          if (httpResponseCode / 100 == 4) {
+            return Code.HTTP_CLIENT_ERROR;
+          }
           return Code.SERVER_ERROR;
       }
     } catch (IOException e) {
@@ -158,6 +161,9 @@ public Code clearCustomInstallationId(
         case 401:
           return Code.UNAUTHORIZED;
         default:
+          if (httpResponseCode / 100 == 4) {
+            return Code.HTTP_CLIENT_ERROR;
+          }
           return Code.SERVER_ERROR;
       }
     } catch (IOException e) {