Customer Segmentation
Marketing Best Practice for Customer Segmentation -- THIS IS SERIOUS YOU’RE NOT GOING TO WANT TO MISS THIS!!!
1. Start with the job to be done
Segment by the problem customers want solved, not demographics.
Example: “repair my skin barrier,” “easy gifting,” “reduce waste.”
2. Add behavioral signals
Use what people do: product views, add-to-cart, purchase frequency, time since last purchase, loyalty behavior.
3. Segment by value
Identify high-LTV buyers, promo-sensitive shoppers, subscription candidates, and high-margin product purchasers.
4. Add the emotional/psychographic layer
Examples: sustainability-focused, ingredient-obsessed, luxury-first, wellness-driven, fast-fix buyers.
5. Keep the total number of segments small
Best practice is 4–6 core segments. Any more and flows, ads, and content become unmanageable.
6. Use dynamic (rules-based) segments
Let segments update automatically: “viewed product in 3 days,” “purchased in 90 days,” “opened 3+ emails but didn’t purchase.”
7. Tie every segment to a lifecycle stage
Awareness, consideration, conversion, post-purchase, retention, winback.
If a segment doesn’t move someone to the next stage, merge it.
8. Validate each segment with actual data
Check: does it represent at least 5–10% of revenue or traffic, does it behave consistently, does it actually change messaging or offers?
9. Keep segments consistent across channels
Meta, TikTok, Google, Klaviyo, onsite personalization, loyalty, post-purchase survey signals.
Unified segmentation increases conversion and lowers CAC.
10. Review segmentation quarterly
Customer behavior shifts every 90 days. Revisit AOV, LTV, CAC by segment, product preferences, flow performance, and list fatigue.
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