Customer segmenting is the process to create customer segments.
You will need a list of customers and an idea about how you want to group the customers, typically using a common attribute or characteristic.
There are an infinite number of attribute to segment on. Which ones you use will depend on what you'll use the segments for.
- location
- demographic data (e.g. gender, language)
- visit/click behavior in your store
- number of orders
- amount spent
There are many models or algorithms that can help create segments. [RFM][] and [Cohort Analysis][] are two popular and powerful models used in ecommerce.
Eric Davis
Get a snapshot of your customer behavior
The sooner you signup for Repeat Customer Insights, the more comparison points your store will have. Each 1st of a the month a new snapshot is taken and saved to your account for analysis.