The Ultimate Guide to Ecommerce Customer Segmentation

8. Applying segmentation to broader customer frameworks

When we, at CM Commerce, look at a store’s customer data and when we plot customer segments based on their purchase volume and frequency, we observe a graph that looks a lot like the Standard Bell Curve. What this implies is that the normal distribution of customers (across their various segments) will look very similar from one store to the next (even if those stores are nothing alike).

Typically, it takes a little while for first-time customers to return and complete their second purchase since they need to receive the product, use it and enjoy it before they can confidently place a follow-up order. However, many forever remain as first-time customers until they complete another purchase. Active repeat customers place multiple orders in a relatively short timeframe because they use your product extensively. Regular repeat customers, on the other hand, enjoy your product but do not consider it essential to everyday life and, thus, take a bit longer to return and make another purchase. At-risk repeat buyers are not particularly frequent customers. Idle customers tend to wait painfully long times to return and place another order, if they ever come back. Fortunately though, there are plenty of opportunities to win these shoppers back and turn them into repeat buyers again.

Are you finally convinced about the power and potential of customer segmentation? If so, keep reading. Well, we’ll show you our custom three-step process.