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
Define the segments based on customer behavioural metrics and
In the example below, we define 5 customer types based on
Average Days between sales (CAvDays) and Annualised Spend
Check how much your business depends on a small group of VIP
customers. Measure the share of sales to different segments of your
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?