It is nearly impossible to build a successful retail strategy that drives revenue without understanding the behaviors of your customers. But not all of your customers are the same, and it can be hard to create meaningful segments of your customers without the help of data. This is why we launched our new segmentation dashboards available to all Retailer Premium subscribers, found in the Customer Segmentation module. These dashboards were created in order to give you an understanding of your customer base and provide recommendations for ways to increase sales and customer engagement based on individual purchasing behaviors.
With the segmentation dashboards, you'll have access to details about what individual customers are purchasing, their baskets, and customer counts by segment. Store owners and managers can use these dashboards to better understand where sales are coming from and the importance of various customer segments. For example, many stores find that their top 15% of customers drive more than 50% of the store's revenue. Marketing managers will also find these dashboards useful to create more customized campaigns that target and engage various groups of customers more specifically, driving more revenue to your store.
How to better target your customers
There are two new dashboards, the Segmentation Overview dashboard and the Segmentation File dashboard. The Overview provides high-level data about the store's customer base and how different customers contribute to revenue. In the Segmentation File dashboard, you'll find more specific information about a customer, such as their favorite category, average basket size, days since they last purchased from your store, and other relevant data to help you create targeted marketing campaigns. These files can be downloaded for use in email and text message marketing campaigns.
To use these dashboards, you first select if you would like to group your customers by phone numbers, or by emails. Then you select how you would like to group your customers. You can either group your customers by store, or group all your stores together. If you choose to group by store, you will get a record of every store you select. This means if one of your customers shops in three of your five stores, that customer's email address will appear three times in the table, one for each store. If you choose to aggregate your stores together, the customer will only have one record in the table, and all the sales for that customer will be summed up across all of your stores.
Choosing how to sort your data will depend on the campaign you would like to run and how you would like to target your customers. If, for example, you would like to run a campaign that gives bonus points to all of your loyal customers across all of your stores, you should aggregate sales across all of your stores. If you only want to run a campaign for a single store, like one to re-engage customers that you are at risk of losing, for example, then we recommend viewing the data by store so that you can see those customers' ranking based on sales within that store. You can also check with your SMS or email provider to determine how to best extract the data so that you can easily upload it into their system.
How does segmentation work?
Segments are determined based on an RFM model. RFM stands for recency, frequency, and monetary value. Your customers are given scores based on how long it has been since they last visited your store (recency), how often they have visited your store in the last 365 days (frequency), and their total spend at your store in the last 365 days (monetary value).
These dashboards group your customers into several meaningful segments so that you can better target these customers through effective campaigns. Your "Can't Lose" customers, for example, are customers that are your highest spenders that aren't returning to the store as frequently as they used to. For these customers, we recommend offering more personal attention and concierge level service to re-engage them. You'll also find out who your "Loyal" customers and "Champions" are, so you can better target these customers in loyalty programs and new product offers. Keep track of customers that "Need Attention" and make sure they're aware of upcoming promotions so that they don't become "At Risk" customers.
Retailer Premium allows you to dive into your store's data so you can identify strategies to attract and maintain loyal customers while increasing revenue. Learn more about Retailer Premium and sign up for a demo to see how these valuable segments can help you target your customers in effective campaigns that will drive more revenue to your store.