Customer Database Segmentation

Use RetentionLogix to group your customers into segments. Treat customers from different segments according to their value to your business. Know your VIP customers and allocate your best resources to service them.

Segment Customer Database by Value, Buying Patterns, Other Attributes

Segment and classify customers by customer value, recency and frequency of purchases, product purchased or not purchased, timing and quantity of purchases.

Combine these behavioural characteristics with demographics and other customer attributes in your database for precise targeting, eg people from a particular location who purchased more N units of widget A.

Automate Segmentation Using Formulas

Define the segments based on customer behavioural metrics and demographics. Examples:

  • Recency, frequency, monetary
  • buyers of category x
  • high-ticket private customers and business byers
  • customers who recently made an enquiry about a new product

In the example below, we define 5 customer types based on Average Days between sales (CAvDays) and Annualised Spend (CAnnSpend)

Classification

Monitor and Compare Customer Segments

Check how much your business depends on a small group of VIP customers. Measure the share of sales to different segments of your customer base.

Segments -comparison

In our sample store, the VIP customers (group A) are only 7.7% of all customers, but because their average annualised spend is so large, they account for 22.8% of all purchases. How much do your VIP customers contribute to your sales?