What are DTC Segments?

We dive into the how we determine what customers are in a segment, how segments work, and how you can leverage them to scale personalization.

All customers are valuable but not all customers have the same value.  DTC Segments divides customers into dynamic marketable groups so you can appropriately allocate resources, achieve personalization at scale, and foster profitable customer relationships.

How are segments Defined and why they are so Powerful

Combines Variables for a Comprehensive View

We've developed a proprietary enhanced RFM (recency, frequency, monetary value) model that continually works on your behalf to analyze customer behavior and adjust customer segments. It uses variables like last order date, number of orders placed, order value, and more. By combining so many variables, we are able to create a comprehensive understanding of the customer, their behavior, and their trajectory. 

Accounts for Outliers

Based on our enhanced RFM model each customer receives an ongoing aggregate score. The customer scores are laid out over a normal distribution model also known as a bell curve. This effectively assures that customers who are outliers in any of the data points are not distortionary valued.  For example,  John who placed one order for $1000 is not valued over Ben who has placed 10 orders for $100. 

Dynamic and Never Stale

Rather than a status list or single criteria, DTC Segments are fluid groups and are often segments within a larger cohort. Customers move in and out of the cohort as they meet (or don’t meet) defined criteria. We continually analyze customer purchase behavior so each segment and its associated data points are always current and ready when you need them.  No more outdated analysis or stale lists.

Aligning Customer Value with Resouces

Customers are grouped into dynamic cohorts, so you can segment marketing communications, tailor experiences customers, and meet customers where they are in their journey with your brand.

With always current customer segments at your fingertips, you can align resources and create programs for the customers who provide the most value to your business.  Today's customers expect relevant content. With DTC segments, you can deliver without spending hours in spreadsheets.  Emetry-Segments

Segment Breakdown: What customers are in each segment?

  • Top Performers These are your advocates. It's the smallest segment but it represents your most engaged and valuable customers. 
  • Consistent Buyers Your supporters. They are above average customers and are likely active purchasers that regularly engage with your brand. 
  • Casual Buyers Meet your average customers. They are the bulk of your database and are a mix of new up and comers,  customers you're losing and 
  • Spectators Your below-average customers. They're a combination of brand new, window shoppers, and lapsed accounts. 

Where to Start with Segments

  • Increase revenue using Segment Average Order Value
  • Develop a Marketing & Touch-Point Strategy
  • Develop customer loyalty programs that extend beyond Wine Club Members

  • Identify marketing intervention opportunities to enhance customer retention

  • Identify rising stars and cultivate their growth

  • Power Automated marketing so you can continually foster growth without thinking about it

Bonus Reading