Customer Loyalty Analysis

How to segment and market to your customers on Shopify

Segmenting your customers into meaningful groups can be difficult. Thankfully By the numbers App not only does Customer segmentation, it also presents the data in an easy to understand interface and provides actionable best practices.

Understanding Customer Segments

By the numbers App segments customers by their frequency of purchase and number of orders. The segments capture the value of Customers to your business. These include:

• Best customers — purchasing 4+ times and at least once within the last 30 days
• Loyal customers — purchasing 4+ times and at least once within the last 6 months
• Promising customers — purchasing 2–3 times within the last 6 months
• Defecting customers — purchased just once within the last 6 months
• Recent customers — purchased just once within the last 30 days
• At risk customers — last purchased 6–12 months ago
• Dormant customers— last purchased 12–18 months ago

For a healthy, growing business, the goal is to have as many customers in the Best, Loyal and Promising segments — these are the most valuable to your business.

Diving into an example

To better illustrate the value of Customer segments, let’s explore a hypothetical customer.

Say Jane Doe made one purchase 10 months ago, this would place her in the At risk segment. That is, she is very likely to churn and never return to your Store.

Win At Risk customers back with special offers and Discount codes

If Jane came back 3 months ago and made 2 more purchases, she would be in the Promising segment. Her renewed presence increases her value to your business.

Retain Promising customers by offering them small discounts and ask if they are satisfied with their purchases

Finally if she purchased again in the current month she would be in the Best segment.

Leverage Best customers by informing them about new products, adding them to your loyalty programs, and asking them to be your store ambassadors

For a more in depth explanation, read the help docs on Customer Loyalty.

By the numbers is available in the Shopify App Store. It has a free trial and doesn’t require a credit card to sign up. Try it now to see where it takes your business.