Five Simple and Effective Segmentation Tips

Posted on January 25th 2013

Five Simple and Effective Segmentation Tips
Goal: Treat every customer personally...


As digital marketers we look for ways to segment our customers into "micro-segments." It is a very effective strategy to help personalize messages to those we serve. Here are five proven tips that work in retail and can also be applied to your industry.

1) Recency
Check the time associated with the last order and when the recipient became a customer. Flag the most recent transactions and use those to personalize your messaging.

2) Frequency
Recipients who buy once should be encouraged to quickly buy (or interact) again; two-time buyers should be pushed to three, etc. Once the customer is over the five-time buyer mark you should consider putting them into a special category where the goal becomes creating a dialogue with this customer.

3) Average Order Value
Look at the total revenue and margin from the customer, the higher the values the higher you rate your customer. Higher margin customers get five stars, and your goal should be to move your customers further up.

4) Geography
Some of your products may not sell in certain climates or zones so timing and geography become key factors. An offer by a restaurant at 11.00 am or 5.00 pm (their time) is much more impactful to someone thinking about their lunch. Similarly, if you are selling apparel, or gardening merchandise, timing is key based on geography.

5) Payment Method – One of my catalog customers treats their customers differently - depending on how these customers pay. Customers purchasing by check or PayPal are put in a different category than those who pay by credit card (and not all credit cards are created equally.)

Just a few items to think about while developing the right mix for you to create interactive conversations with your customers. Remember, segmentation works well - keep looking for ways to improve your segmentation.

Sundeep Kapur

I am a teacher at heart - working with all kinds of organizations on their converged marketing strategies. At the end of the day, it is all about finding new consumers, knowing them better, and serving them quickly. My ebook is at
See Full Profile >