How to Work with your Customer Segments

Customer segmentation, i.e. grouping customers based on common characteristics, helps brands to better understand their customers and to deliver personalized experiences. Now that you have created your segments, learn how to work with them:

1. Segment any report
2. Sync the segments with your marketing audiences
3. Track the segments' development
4. Compare segments with each other

Segment any report

After creating a segment, you know which customers belong to that segment. You also have the possibility to perform all powerful analyses for a single segment and thus analyze customer groups in a selective way.

1. Navigate to the report you'd like to analyze.
2. By default, all your customers are considered for the report. Change this setting and select the appropriate segment.

To remove a segment from the report, just select again All Customers.

Sync the segments with your marketing audiences

RetentionX allows you to have one-to-one syncs between your segments and your marketing audiences. This allows you to target customer segments with specific ads, use them as input for lookalike audiences or exclusion groups. To create a new audience, navigate to in the side bar and click New Segment. 

Click Create Audience and select the marketing platform where you want to create the segment as an audience. It is important that the appropriate accounts have been connected with RetentionX in advance.

You also have the option to push your segment information to your email marketing and customer service platforms, e.g. Klaviyo. Therefore, make sure to add Segments as a field to be exported in the export settings of the respective automation.

Track the segments' development

Once you've identified segments they want to work with, it naturally makes sense to track their development. Common metrics for customer segmentation include segment size and growth, segment profitability, segment engagement, and segment loyalty:

• Segment size and growth measure how many customers are in each segment and how fast they are increasing or decreasing.
• Segment profitability looks at how much revenue and contribution margin 1 are generated by each segment.
• Segment engagement examines how often and how long customers in each segment interact with your brand.
• Lastly, segment loyalty measures how likely customers in each segment are to repeat purchases, renew subscriptions, or recommend your brand to others.

To track the development of a segment, navigate to in the side bar and scroll to the segment overview. 



There you will already find how much gross revenue was added by each segment after creation.

1. Click on the Added Revenue info to get more details.
2. Select the metric you'd like to monitor.

Compare segments with each other

If you look at analysis including all data, you’ll only see how people behave overall and if you look at specific segments, you’ll see how those behave. However, compared data will quickly inform you on what makes it unique. Comparing data highlights discrepancies and leads to important questions and answers. To compare two different segments, first navigate to the report you want to analyze:

1. Open the compare view by clicking
2. After that, the report is displayed twice side by side and you can select the appropriate segments.
   
   
   
   
3. Deactivate the comparison view by clicking Exit.

If you choose the All Customers option from the dropdown, it will go back to the overall store's performance (without segmentation).

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