Engagement Segmentation

Engagement segmentation is an automated segmentation feature which places customers into activity groups. Segments tracked are shown in the following chart:


Understanding Your Business Through Segmentation

Engagement segmentation enables you to understand how your business is growing and which segments are most valuable. Some insights with this segmentation include:

  1. Active customers - Typically businesses identify size with revenue; however another way of gauging size is through customers. Focusing on this metric tends to be more appropriate for service based organisations as businesses tend to focus on scale and service standards, ensuring customers remain engaged and keep coming back for more.
  2. Customer value - Shopperee identifies the average value of a customer in each segment. This allows you to understand how much you could spend to acquire customers in each segment. For example, a common approach is for businesses to understand the gross contribution of each new customer. Shopperee provides this metric so you know your expense limit per new customer to remain profitable.
  3. Lapsed customers - Shopperee mirrors the conditions for new and lapsed so you can identify instantly if your business is growing or shrinking. The more "New" customers you achieve against "Lapsed" customers shows you the rate of growth in terms of customers. Note that you should be concerned if "Lapsed" customers are outpacing "New" ones.

Marketing and Engagement Segmentation

With an understanding of how customers engage with your business, you can create more targeted offers to customers. By using more relevant and targeted offers, you will limit fatigue and ensure fewer customer "opt-outs" from your eDMs.

Some examples of targeting to segments include:

  • Engaged - customers are those who really enjoy your services and products. You should send these customers high value offers . These customers regularly buy from your offerings so this is a chance for you to offer something different or reward them for being loyal.
  • New - customers are those who have just purchased from you. These customers have little experience with your business so spend time educating them on you offerings. Remember initial impressions drive long term relationships so expending effort on touch points during this phase may drive engagement.
  • Core - customers tend to be ordinary ones. They value your business but don't consider it their top priority. Cultivating their interest in other areas of business may turn them into engaged customers.
  • Lapsed - customers have not transacted in a year. These customers know your business but have decided not to re-engage. Standard eDMs to this segment may drive further activity; however, a more personalised approach or follow up contact may be better.
  • Inactive - customers have not transacted in more than 13 months. These customers have not experienced your services for a long time. Tacticals you consider could include telling them about your new offers or how your business has changed.
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