Every marketer or business owner aims to build their brand and revenue. And so, investing in marketing efforts is crucial. But, what is even more important is that to make sure that you spend it on the RIGHT marketing strategy.

Your money would go down the drain if you do not cater to the needs of different customer groups. The key is to make sure that your marketing strategy would not turn into wasted dollars. So, how do you do that?

Here’s an example to put things in perspective:

Email marketing can help you acquire customers. But for most customers, the ‘promotions’ tab in their Gmail account is a space full of unwanted promotions and discount offers. Because of these unwanted offers, many customers choose to unsubscribe from the email list. Hence, this reduces the chances of engagement from the same customers.

But what if your marketing efforts were more focused and targeted?

Customer segmentation can help you group together customers that have similar traits and characteristics. By doing so, you can plan a more focused strategy and prioritize personalization.

What is eCommerce Customer Segmentation?

Customer Segmentation means sorting customers into subgroups based on similar traits, such as product preferences, purchasing patterns, and demographics. Therefore, by segmentation, it becomes easier for you to advertise products and services to the right customer groups. This also increases the retention rate and the possibility of repeat purchases.

Types of Customer Segmentation

Let’s look at some customer segmentation examples to get a clear picture of what it is and how to do it.

1. Demographical Segmentation

Demographical Segmentation is dividing customers into groups based on gender, age, marital status, occupation, and social-economic status. You will be able to customize your marketing strategy by targeting the right demographic. 

2. Behavioral Customer Segmentation

Behavioral Segmentation is the analysis of past behavior of customers – with the help of which you can predict their future purchase decisions. Moreover, you will be able to provide your customers promotional and discount offers that are catered to their purchase habits.

3. Geographical Customer Segmentation

Geographical Segmentation groups customers based on their location.

4. Psychographic Segmentation

Psychographic Segmentation is one of the most modern ways of segmenting customers, as it came up after the rise of social media. It takes into consideration various attributes, such as culture, beliefs, attitude, etc.

5. Customer Activity

Customer Activity is the segmentation of customers based on the ‘customer status’. It usually includes new, inactive, and existing customers. It helps businesses focus on content personalization to increase revenue.

6. On-Site Customer Behaviour

High-value customers are the ones that spend the most and are your top-paying customers.

Benefits of Customer Segmentation

Now that you know how to perform a customer segmentation analysis, let’s look at some benefits of doing so.

1. Effective Marketing Strategies

Segmentation can help you understand the needs and expectations of your customers. You can use these insights to plan more focused strategies to gain the attention of your target audience and increase revenue.

You can also allocate resources and focus on specific channels that drive sales. Targeted marketing campaigns and engaging with your customers on the right channels provide the right exposure. Also, a focused message can help you stand out from your competitors as you offer a proposal that caters specifically to their needs.

2. Customer Journey

As you grow, you will grab the attention of customers with very different needs and intentions. You will find customers that will pay top dollar to get what they want and then there are those who will never visit your website even after signing in. And finally, you’ll also have a couple of cart abandoners.

Customers have varying phases of involvement with your website and its offerings. Hence, you need to deploy different tactics to encourage them to make a purchase.

Following are the various stages of optimizing customer journey:

  • New Customer: These are first-time visitors that have just landed on your website. Before recommending products and services, let them explore your offerings and encourage them to sign up.
  • Casual Browsers: These users are familiar with your website and have already checked for products on other websites. They are just exploring a few more options. At this stage, you need to recommend the right products and services according to their needs.
  • Customer Acquisition: At this stage, the customer is done checking your catalog and has added products to the cart or their wish list. They will most likely make the purchase. But it is essential to monitor them as you may encounter cart abandoners. In such cases, emails or notifications work best to confirm the purchase.
  • Active Customer: These are users that actively visit and shop through your website. Offer them discounts on products of their interest to encourage repeat purchases.
  • Loyalists: These are customers that have stuck with you for a long time and are your biggest assets. Offer them exclusive discounts to keep them interested. Some eCommerce websites even provide early access to mega sales along with exclusive discounts.

3. Customer Behavior

Customer segmentation also helps you predict the future purchase habits of customers. By analyzing their current needs, you can predict their future needs and offer them the right products to speed up the conversion rate.

4. Customer Experience Personalization

Customers now want a more personalized experience rather than a one size fits all approach. By analyzing the preferences and purchasing patterns of customers, you can elevate personalization in your offerings.

5. Product Development 

You can extract various insights from data. This can help you identify opportunities to fill the gap in products and services. Leverage segmentation to update information about your customers and explore untapped channels to generate revenue.


Customer segmentation has become an important aspect of eCommerce. It can help you understand the needs of your customers, plan effective strategies, and provide an exceptional customer experience. If you want your marketing efforts to generate revenue, you need to focus on personalization.

Real-time insights and instant personalization with AI tools help eCommerce to meet and even exceed the customer’s expectations. RecoSense is an advanced personalization platform that offers customers personalized experiences every time they interact with your brand. The platform’s numerous features and automation capabilities guarantee a significant boost in your bottom line while ensuring you do less work. Start analyzing your customer segments and focus on investing your marketing resources accordingly.

Start analyzing your customer segments and focus on investing your marketing resources accordingly.

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