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Customer Segmentation: An introduction and the importance of segmenting your customers

June 17, 2021

Customer segments - your secret marketing tactic to increase revenue and always send the right marketing message to the right customer.

Understand the significance of customer segmentation

Customer segmentation… you’ve probably heard about it from your peers and read about in various marketing articles so what exactly does it mean to segment your customers and how do you do it?

Customer segmentation is how marketers divide their customer base into smaller subsets or different groups of customers, based on common characteristics like demographics, psychographics and shopping behavior. Studies have shown that marketing campaigns sent to segmented customers can result in a 200% increase in conversions.

So how do you segment customers? The basics of segmentation is simple, you can start by segmenting your audience based on purchasing habits. Let’s explore these customer segments further as a starting point:

1. Recent purchasers (or "Active" in Segments)

These are customers who have purchased from your store recently.

Action 👉  sync these customers into your email marketing platform and Facebook to upsell, cross sell these customers complimentary products based on their purchase or after care products.

2. High spenders

These customers are, as the segment name suggests, customers who’ve spent the most on your store. Using our app you can change the filters to view your highest spenders in the last 6 months

High spenders segment
Screenshot of high spenders in Segments (sample data)

Action 👉  target your highest spending customers with an email inviting them to exclusive deals, new releases, basically anything to really make them feel special for spending with your store

3. One timers

These are customers who’ve purchased from you once and they are ripe for your brand to retain to increase customer retention.

Action 👉  sync your one timers into Facebook Ads and your email service provider and target them with an offer (discount, bundle, etc) to get them to repurchase. It’s statistically proven that returning customers will help increase your store's profitability.

Don’t forget to check out our app, Segments on the Shopify store, we have 30+ pre-built customer segments like the ones above which will help you drive additional revenue for your business.

In the next part of this series we’ll focus on segments based on engagement tracked by email service providers so stay tuned.

Leverage the power of Segments for easy to use actionable insights to grow your store revenue and don’t forget to follow us on LinkedIn for more #ecommerce tips and tricks!

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