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Using Value Segments

Natalie Samuels
  • Updated
Value segmentation is the grouping of customers according to their expected future value. This allows the targeting of a wide range of different customers based on their potential value, rather than looking only at their past behavior.
 
Because value groups cut across lifecycle stages, it is useful to look at a customer’s value segment when deciding on policies, such as service levels and compensation levels of error remediation.
 
Typical segments include Diamond, Platinum, Gold, Silver, and Bronze.
 

Example Use Cases

Entice High Future Value Customers to Become VIPs

Building up your VIP customer base is key to fostering loyalty with your most profitable customers. However, it can be difficult to identify which customers are a good fit for your VIP community.

To take away the guesswork, you can use value segments to identify high value customers and target them with campaigns enticing them to join your VIP program by offering incentives.

You can also explore the behaviors of customers in high value segments to identify specific behaviors or characteristics that they have and when comparing them to the rest of your customer database. Using this insight, you can get a better understanding of what kind of behavior you would like to encourage from the rest of your customers in order for them to be on the right path to become VIPs.

Win Back Valuable Churned Customers

Re-engaging customers previously interested in your brand is more cost-effective than putting all your marketing efforts into acquiring brand-new customers. That’s why having a strong reactivation strategy is so important.

However, if you have limited resources, you want to focus on winning back customers that will bring the most value to your business. To do this, create a segment layering customers with a low probability of reactivating but with high future value.  By identifying these customers, you can put the extra groundwork in winning back customers that will maximize long-term revenue.

Here is how this selection appears in Customer Explorer:

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Value Segments Update Frequency

Value Segments update daily. Read more about the update frequency here.

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