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Customer segmentation consists of dividing an organization's database into groups of customers who share similarities and whose behavior presents an opportunity or a sign of decline. The aim of this segmentation is to tailor our strategies to treat each customer in such a way as to maximize their value to the organization.
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We've already done all the hard work for you. Specifically, we've separated your customer base into 6 distinct groups. These groups were formed according to 2 criteria of their purchasing behavior: frequency of purchase and recency of last purchase. These criteria enabled us to classify customers in such a way as to recognize: the best, the most committed, the new... but also those in the process of becoming inactive, having not made a transaction for some time. See how that speaks volumes!
And what do we do with this information? We trigger certain journeys, or adapt our communications according to the type of customer we're addressing. For example :
- A thank-you to the "Champions" for their commitment;
- Personalized reminders for customers moving down a segment;
- Constantly soliciting customers at risk of leaving the theater for good, to win them back.
- The aim is to move customers towards the most interesting segments: "Champions" or “Loyal customers" with frequent and recent purchases, while minimizing the drop-off and loss of less committed customers.
Every month, the system scans the database and reclassifies each customer into the right segment according to the selected criteria of purchasing behavior. You'll understand that a new transaction will move a customer to a higher segment. Conversely, a customer who has not completed a transaction within the specified timeframe will be pushed into a lower segment. And our customer journeys are segment-driven and customized for each customer. All fully automated.
On your mark, get set, go!
The OVATION team
