Quick Guide: How to Segment your Customers on Shopify.

Understanding and implementing customer segmentation is essential for any Shopify store looking to gain valuable insights and foster growth. This guide will demonstrate how to utilize By the Numbers, a Shopify app, for effective Shopify Customer Segmentation and reporting.

What is Customer Segmentation?

Shopify Customer Segmentation involves grouping customers based on various characteristics or behaviors. ‘By the Numbers’ offers an array of segmentation features, such as:

  • Number of Orders
  • Average Order Value
  • Total Sales
  • Total Refunds
  • Total Discounts
  • Days Since First or Last Order
  • Number of Items Purchased
  • Date of First or Last Order
  • Email
  • Email Verification Status
  • Accepts Marketing
  • Customer Loyalty Group (Dormant, At Risk, Promising, Defecting, Recent, Best, Loyal)
  • UTM Campaign, Medium or Source
  • Product(s) Purchased by Name, SKU, Vendor or Variant
  • Discount Code
  • Customer Tag
  • Customer Location
  • Sales Percentile
  • LTV

Starting with segmentation can seem daunting, so let’s begin with a simple example: segmenting customers based on their first purchase, like a ‘Large Widget’.

How to Start Segmenting Your Customers

To get started with By the Numbers, install the app and open the ‘Segments’ page from the left navigation panel under the ‘Customers’ heading.

From here, you can choose from over 20+ preset segments that reflect diverse customer behaviors and traits. These segments provide immediate insights into different aspects of your business.

The ‘Segment Details’ page further enriches this with stats like Average Order Value and Customer LTV. Additionally, integration with email marketing platforms like Klaviyo helps in engaging and winning back customers.

To create custom segments, use the ‘Create Segment’ button. You can set filters to group customers based on specific behaviors, such as their first purchased product. This flexibility allows for tailored reports, giving you a focused view of customer performance.

How to make custom Customer Segmentation with Shopify

To create custom segments based on different customer behaviors, click the ‘Create Segment’ button on the top right of the page. You can then designate things like Name, Description, and Filters.

Filters can be used to group customers based on their behavior. For example, filtering for ‘Purchased Product (First order only)’ lets you create a segment based on the first product that customers purchased. To see the full list of Filters, visit the Help Guide.

Understanding Reports with Segmentation

For instance, let’s consider a Cohort Retention Report. By selecting a segment, the report adjusts to display relevant data for that group, helping you identify which segments are performing well or need more attention:

Simply select the custom or pre-built segment you’d like to filter the report by from the ‘Segment’ drop-down menu. The report’s values will then adjust to reflect the desired segment, allowing you to zero in on which customer segments are over or under-performing.

Shopify Customer Segmentation doesn’t have to be complicated. By the Numbers simplifies this process, empowering you to segment your customers with ease and generate insightful reports. Stay tuned for more guides to unlock the full potential of your Shopify store. For further insights into customer behavior, check out our guide on Cohort Retention Analysis in Shopify

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