In our previous posts we explained the importance of customer segmentation, and the model we use to predict your customers' LTV. Here, we explain what to do with this information.

As you know, we give you 5 different kinds of lists:

  • Top customers
  • Active customers
  • Customers at risk
  • Lost customers
  • Custom list: Where you can use information from the previous lists and from other customer variables to build any kind of list you want.

These 5 lists give you all you need to create great audiences for future campaigns. To make it easier for you, you can export them to CSV, or directly to Mailchimp or Facebook.

Let's talk about what you can do with them in each channel.

Facebook:

Custom audience: Export your lists directly to Facebook and create custom audiences. Example: export your ‘At Risk’ list and target these people with a discount to try and recover them.

Lookalike audience: Use case: you have a list of your top customers. As they are the most faithful and highest-spending customers, you’ll obviously want as many customers like them as you can get. So what do you do? You export the top list to Facebook and create a lookalike audience, target this audience with your best-converting ads, and acquire potential top clients. Now, if you have only one or a couple of products, you’re done… But what if you have lots of very different products? Your top list will be comprised of people who bought many different things, and for whom completely diverse ads work. So how do you know what to show to whom? This is where the Custom List builder comes in handy. You first use the custom list to segment your top customers based on the categories or products they have purchased, and then create a lookalike audience for each one of these segments. By doing this, you can target not only a lookalike audience of your top clients, but you also know what kind of content to show them to maximize the probability that they like what they see.

Mailing:

As you probably know, every mailing campaign you send has to be segmented for it to work. The lists we give you can make great audiences for your campaigns: for example, create a custom list of active customers who have bought products from multiple categories, and then create an automated campaign sending weekly product recommendations for thosecategories. This will most likely help you cross-sale, leading to an increase in those clients’ CLV.

Ideas for every segment

We've shown only the most basic examples for you to have a broad picture on how use audiences in each channel, but the truth is, you can actually use every segment to make a great audience and drive up sales. Here are some ideas on how to make the most out of every segment:

Lost customers.

Remember that there are people who are very unlikely to buy from you ever again. Depending on your business model, this may easily be your largest segment.

Facebook: We don't recommend you to spend money advertising to these customers, but you can always send them mailing campaigns to try and recover them.

Mailing: Send a campaign with a discount to try and make these customers buy again. Remember that these people have already bought from you, so you can use the custom list builder to segment this list based on which products they bought, and send them related products with a tempting discount. However, we don’t encourage you to give them a discount aggressive enough for you to lose money with it, because the chances of getting it back in a next purchase from these people are quite low.

At risk customers.

These are the people in the slippery slope. They might buy from you again and go back to being safe customers, or might lose them. With the help of our lists, you can give them the right push to make them fall in the profitable segment.

Facebook: Create a custom audience based on this list and advertise campaigns with a conversion objective. These are remarketing campaigns, so all the ads must have Call to Actions (CTAs). As we mentioned earlier, we recommend to segment this list based on products people have bought before, and create different adsets for each one of these segments, advertising content related to their previous purchases.

Mailing: Send campaigns with clear and persuading CTAs. If you can send a discount, much better. Remember you want to save these customers from losing them forever. We recommend to create an automation for this list, sending an email every period of time until they buy again. Once more, all of these campaigns will work better if you segment the list and send users content you already know they like.

Safe customers.

You could leave these customers alone and they'd buy from you again, but you should want to make them become top customers, and increase the revenue you can get from them.

Facebook: There are two things you should do with this segment:

  • Create a remarketing campaign for this audience to keep reminding them to buy. This means cross-selling and increasing repurchase rate.
  • Create a lookalike audience from this segment. Then, send out a campaign to acquire new customers like these: more customers with a good CLV.

Mailing: Create automation campaigns. The goal here is to make these customers buy more often and/or spend more money on their future orders. As always, segment this list: if you sell products that can be rebought often, create an automation to remind people to rebuy those products. If your products are not of this nature, send  campaigns with related products they can buy (this is known as cross-selling).

Top customers.

These are your best customers by far. They buy from you often and spend a lot of money, so you want to keep them where they are, and acquire more customers like them.

Facebook: We don't advise to advertise to these people directly. Instead, create a lookalike audience based on this list, and send out campaigns to attract users who are likely to become top customers. Sometimes the custom audience is not big enough to create a lookalike. If this is the case, you can create a custom audience not only with your top customers, but also including all customers who have spent more than the top segment's CLV (you can find this CLV at the top of the list). Why does this make sense? Because the 'top' list only comprises people who are your top customers right now (who are active buyers). However, you've had other top customers in the past, who have ended their purchase cycle, and so are now in the 'lost' category.

Mailing: You have to keep these customers happy. Make them feel special and let them know you love them just as they love you: send them invites to new store openings, send out a thank-you campaign, and give them an occasional exclusive discount.