Most valuable 80/20 customer segments for your Shopify store

As a follow-up to my article about which segments to focus on, you can take a more precise approach.

Each cell in Repeat Customer Insights’ Customer Grids is about 4% of your customer base. (The grid isn’t strictly 4% though due to how the algorithm works but it’s good for a rule of thumb).

That means if you pick 5 cells, that’s 20% of your customer base. If you can flex your definition of 80/20 to be more or less than 20% then 4 to 6 cells would be good group sizes (16%-24%).

The most valuable segments in each grid would then be:

Recency-Frequency (RF) Grid:

  • Loyal + VIP (RF) – most loyal customers (6 cells)
  • Potential loyal + Promising new – potential for growing into great customers (4 cells)
  • Defection risk (RF) + Defection risk loyal – good for defection campaigns to recover fading customers (5 cells)

Frequency-Monetary (FM) Grid:

  • Whale (FM) (3 cells)

Recency-Monetary (RM) Grid:

  • Recent whale (RM) and Recent high spender (RM) – they just bought and have spent a lot (6 cells)

Each of those named segments include advice on reaching and retaining those customers. That way you’ll have an easier time figuring out what to do, it’s not just a data dump that you have to piece together.

If you’d like to have your customers analyzed, segmented, and then explore specific advice on how to build their loyalty, Repeat Customer Insights can do all of that for you.

It comes with a 14-day free trial so you can see how it works and get some ideas right away.

Eric Davis

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