To help you market to your contacts based on where they are in their customer journey, we offer a segmentation criteria called customer lifecycle stage. We look at each individual customer’s purchase history and patterns and compare that to what’s normal for your store. Then, we use artificial intelligence to place customers into 1 of 4 lifecycle stages.
In this article, you’ll learn about the customer lifecycle stages, what our model looks at to determine which stage a customer falls in, and how to use that information to create targeted campaigns.
Things to Know
Here are some things to know about customer lifecycle stages.
- You must have a connected store to access this segmentation criteria.
- We’ll only display lifecycle stages as a segmentation criteria if we have enough data from your online store to adequately categorize your customers.
Customer Lifecycle Stages
Customers can fall into 1 of 4 general stages: new, alive, uncertain, and lapsed.
Here’s an overview of what each stage indicates about your customers.
|Lifecycle Stage||Customer Characteristics|
|New||New customers who have made their first purchase in the last 30 days.|
|Alive||Customers who are likely to purchase again.|
|Uncertain||Customers whose purchase activity has dropped off and who may have disengaged.|
|Lapsed||Customers who are unlikely to purchase again.|
To determine which stage a customer is in, we do some math on our end to compare averages for your store to a few customer-specific variables:
Customer age This is a simple measure of how long a person has been a customer, or the amount of time since their first purchase.
Time between first and last purchase We’ll look at the time between a customer’s first purchase and their most recent, or last, purchase.
Time since most recent purchase This is the time since a customer last made a purchase from your store.
Frequency This variable looks at how many times a customer made a purchase.
Our artificial intelligence model takes all these variables into consideration to make a prediction about each customer. Exactly when or why we move a customer into a different stage depends on all of these variables. This means, for example, there may be a customer who is moved into the lapsed stage after 8 weeks of inactivity, while another has been inactive for longer, but is still in the alive stage.