Individual customer behavior is hard to detect.
People say the craziest things sometimes and trying to make sense of it will be frustrating.
But when you can look at groups of customers, trends and patterns can appear.
Customer segmenting tries to group similar customers together. It can be by demographics, location, behavior, or anything else.
Good places to segment are:
- the number of orders placed
- time on website
- geographic location
- products purchased
- amount of money spent (use 3-5 ranges so you don't have a huge number of groups)
Some of this can be automated while some will require manual number-crunching every now and then.
But you only need to spot a handful of behavioral trends before it starts to pay off.
Even one really good trend can make your year.
If you haven't installed Repeat Customer Insights yet, it's an easy way to get a detailed look at your customer behavior including some of the behaviors mentioned above.
Eric Davis
Segment your customers automatically with RFM
Segmenting your customers has always been touted as a powerful marketing tool but many stores avoid it because it can be time-consuming.
Repeat Customer Insights will automatically segment your entire customer base for you based on the valuable data Shopify has already collected for you. Ranging from 5 to 30 to over 125+ different segments using RFM and other models, you can pick how much power you want to harness.