Introduction
This article outlines a case study of ECPower's customer segmentation targeted towards first-time buyers to encourage repeat purchases (conversion to 2nd purchase), and shares some ideas for marketing strategies.
Segment of First-Time Customers who Purchased a Specific Product in the Last Month
This refers to a segment of customers who made their first purchase of a specific product or product category in the last month.
Examples of Marketing Outreaches:
- Customize the repeat purchase strategy according to the needs of the product
- Suggest cross-selling of products related to the initial purchase
- Deliver content related to how to use and enjoy the product
Segment of First-Time Customers who Purchased with a Specific Order Tag in the Last Month
This refers to a segment of customers who made their first purchase with a specific order tag in the last month.
For instance, by asking customers to fill in their purchasing purpose on the Shopify order screen, you can segment customers based on order tags.
Examples of Marketing Outreaches:
- Encourage customers who purchase with a "gift" tag to buy for themselves
- Propose a purchase for a different purpose to customers who purchased with an order tag related to a specific purchase intention
Segment of First-Time Customers who Purchased with a Specific Coupon in the Last Month
This refers to a segment of customers who used a specific coupon for their first purchase in the last month.
Examples of Marketing Outreaches:
- Customers may be sensitive to coupons and other promotions. Distributing coupons may be an effective way to encourage them to make a second purchase.
RFM's "At Risk" Status First-Time Customer Segment
This refers to customers who have passed a certain period of time since their first purchase. Once this period passes, the chances of getting them to make a repeat purchase decreases, so it might be beneficial to prioritize these customers with marketing efforts.
Examples of Marketing Outreaches:
- Distributing coupons or implementing other strategies that have a high probability of leading to repeat purchases can be effective.
First-Time Purchase x Demographic / Geographic Data Segment
If customer attribute data is available, segmentation based on this data might be effective.
- Please note that data on age groups is not included in Shopify's default data, so additional setup for surveys or tag assignments may be required.
Examples of Marketing Outreaches:
- Customize messages based on age and residential area
Related Articles
Examples of other types of segmentation can be found on this page.
Methods of building a customer journey for nurturing loyal customers and the concept of RFM segmentation are explained in this article. Please take a look at these as well.