How to use: Use this customer segment (or dig down further using Active one timers or At risk one timers) to find the customers you need to get to make a second purchase. Use the ‘Product Analysis’ functionality to discover which products are typically bought as a second purchase and create an email campaign focusing on that product.
Segments definition: Customers who haven’t purchased yet, but have entered their email into Shopify within the active window (<2 days on average.)
Background: When someone signs up for your store or newsletter, it’s a great indication of their level of interest in your company. Ciceron found that new subscribers were most engaged with 48 hours of signing up. Striking while the iron is hot increases your chances of converting a subscriber to a customer.
How to use: Analyze how your ‘new subscriber welcome sequence’ is performing through the helpful email integration. Use this segment to understand the difference in performance when you test:
Different email content
The number of days after subscribing
The incentives you offer
Working hard to optimize your welcome sequence will generate a large uptick in revenue - when you turn a subscriber into a customer, you’re increasing your Customer Lifetime Value many times over, not just one.
Segments definition: Customers from the at risklifecycle grid stages who have the highest chance of never coming back
Background: The longer it’s been since someone purchased from you, the less likely they are to buy from you again. For example, if a customer normally buys from you roughly every five weeks, but hasn’t purchased in eight weeks, you need to act to change their behavior, otherwise you’ve likely lost that customer.
How to use: Create a solo email or email sequence to re-engage customers that are likely to churn. Provide an incentive like free shipping, 2-for-1 or a discount to keep them interested. Because you know they are at the highest risk of churning, this allows you to add more urgency in your approach.
Segments definition: Customers who’ve bought 1+ orders but have now churned (passed the lapse point of the buying cycle.)
Background: Following on from the previous segment, Churned customers shows you which customers have already reached the stage where they have exited your average buying window. Still, as we saw earlier, it’s cheaper to bring back a previous customer who hasn’t bought from you in a while than to acquire a new customer, so this is a good use of resources.
How to use: Choose the whole segment or dig down further into churned loyals, churned high value or churned repeats for specific messaging. This is where the ‘we haven’t seen you in a while’ emails come into play, like this one from Typeform…
Many ecommerce companies fall into the trap of offering deep discounts straight away in this situation, which eats into already-tight margins or risks the brands being perceived as a ‘discounter’.
Instead, try re-engaging churned customers by attempting to get them complete a mini-conversion, e.g. reading your latest blog or sharing a social media post, before moving to other incentives.
Background: You might ask ‘Why should we analyze our loyal customers? Surely we’re already doing everything right, otherwise they wouldn’t be loyal?’
Well, there’s the Pareto Principle, otherwise known as the 80/20 rule. 20% of your customers are probably generating 80% of your revenue.
Unlike all the other segments above, we’re not trying to change these customers’ behavior. We’re trying to understand it so we can turn other customers into loyal buyers too!
How to use: Open this segment and look for three key points:
Which products did they buy and in which order?
What marketing channel(s) brought them to your ecommerce store?
Which marketing campaign converted them?
Once you’ve identified the top products, marketing channels and marketing campaigns, it’s time to double down.
Can you use the products that create loyal customers in more of your marketing? Perhaps you can include that product in your welcome sequence or your paid marketing?
Can you allocate more budget and resources to the marketing channels and campaigns that create loyal customers and reduce budget from those that don’t? Regardless of how you do it, you need to be using this data.
Segment your way to success
Scaling your ecommerce business profitably is hard. Customer acquisition costs are rising and as the overall ecommerce market grows, so does competition.
The businesses that succeed will be those that use their data in a smart way to make more Revenue Per User (RPU) than the competition. These businesses can afford to pay more to acquire a customer, confident in the knowledge they’ll exceed that figure with repeat transactions and an impressive Customer Lifetime Value.
For one, I’m glad that I now have a data analysis tool that I can wholeheartedly stand behind and recommend to all of my ecommerce clients.
So if you’re looking to grow your ecommerce brand, make sure you sign up for Segments’ free trial today.
Author Bio: Nelson Jordan is a conversion copywriter, content strategist, digital marketer and host of the ‘Working From Home’ podcast. With more than 10 years’ experience helping companies grow their revenue, he provides tips, tricks and strategies for success at his blog www.nelson-jordan.com.