Why use behavioral segmentation?

Not all your customers are the same. Some are just getting to know your brand, while others are true champions. So, why use the same messaging and actions for all?

Behavioral segmentation helps you understand your customers and automatically categorize them by analyzing vast amounts of data. This way, you can focus on important customer segments that are likely to give you a higher return on investment and also tailor your marketing messages and offers for each of these segments’ needs. When done right, the result is increased Customer Lifetime Value and decreased churn.

What is the Value-Engagement Model?

The Value-Engagement Model provides an intuitive way to segment your customer base. Depending on how valuable they are to you and how engaged they are, the model classifies your customers into one of 7 natural segments.

Segmentation graph.png

The Value axis represents the amount of money a customer has spent on your website over the last 12 months of their lifetime as a customer.

The Engagement axis represents how involved a customer is with your business. The more recent the latest order or website visit (still in alpha) of a customer is, the higher the engagement value is.

How should you use the segments?

Prioritizing the segments

The hardest thing about behavioral segmentation is getting started, so here is a great way to prioritize your work:

  1. Reward your True Champions
  2. Save your Spenders at Risk
  3. Push your Excited Shoppers to purchase again
  4. Build up loyalty with your Faithful Supporters
  5. Captivate your Curious Entrants
  6. Engage the Average Buyers
  7. Activate the Silent Quitters, maybe

True Champions