Vanhishikha Bhargava
Vanhishikha Bhargava

How To Use Customer Analytics And Segments To Increase Shopify Sales

customer analytics to increase shopify sales

Black Friday, Cyber Monday, Christmas, New Years – the holiday shopping season was crazy for most Shopify stores. Now we know the holidays are over, but whoever said online shopping is going to dip – is wrong! All it takes is making the right nudge to drive these seasonal shoppers to your store again to make more repeat purchases. In this article, we’re sharing how to use customer analytics to do exactly that and increase Shopify sales!

Who are seasonal shoppers?

These are online consumers who are on the lookout for massive discounts and deals from brands. They most likely have a number of products wishlisted on the Shopify store or have a mental checklist of products they need, willing to explore which brand offers them at the best price.

You’ll usually see these shoppers make most of their purchases during the holiday season. It is the one time where most Shopify stores see an upsurge in traffic and the sales they make.

For that matter, TechCrunch reported that online shoppers in the US alone spent $50B in November 2019. The study also predicted the holiday season sales to reach a whopping $143.7B by year-end.

holiday season sales 2019

That’s a lot of sales being made in a very short period. But it’s also the one time every Shopify store gets a lot of customer data – that eventually goes to waste.

Think about the last time you used your holiday season sales data to optimize your product inventory or personalize your marketing campaigns to keep these shoppers engaged.

Wait, is that even possible?

TLDR; yes. But only when you put Shopify analytics to use to create customer segments.

Or what we like to call, putting customer analytics to work.

What is customer analytics?

Customer analytics is a branch of eCommerce analytics that focuses on understanding customer behavior. It pulls in key factors that play into their purchase decisions to create clear customer segments.

So basically, you’re moving beyond the general demographics of the shoppers who come to your store. You’re focusing on what motivates them to turn that visit into an online shopping spree.

Now considering every shopper is different, that’s a lot of data to look into. No matter how many times you pull up a Google Analytics report or dive into your store analytics, it becomes hard to even identify these ‘motivators’.

Why is customer analytics so important?

More than 74% of online shoppers expect personalization from brands in terms of content and their shopping experience. But most of them walk away frustrated that the personalization does not cater to their interests or preferences. In fact, about 89% of consumers simply switch brands after poor customer experience, leading to brands losing 20% of their annual revenue.

Now considering the increasing competition in the eCommerce industry, that’s a lot to lose.

And that’s your reason for using Shopify analytics to create customer segments for the personalization of campaigns.

If you’re just starting out with eCommerce analytics or need help understanding how to set it all up, join our masterclass today: eCommerce Analytics Masterclass.

How to use customer analytics to increase Shopify sales?

1. Use loyalty programs to keep your VIP customers

Your VIP customers are segmented based on the revenue they have generated for your store. These are customers who come in the top 10% of your shopper base and have made bigger purchases on your store.

But what is important to note here is that these are shoppers who trust your brand. An online consumer makes purchases worth a high value only if your store makes a great first impression and offers a good shopping experience. These are people who are more likely to be loyal to your brand, and even become advocates of it.

Reach out to this customer segment with a loyalty program. Nudge them to come back to your Shopify store for more by offering in-store points and rewards that add value to their next purchase.

Here’s an example from Mirenesse:

Mirenesse loyalty for customer segments

If you don’t have a loyalty program, you can set up one using the best Shopify apps like LoyaltyLion and Smile.io.

2. Attract price-sensitive customers with a custom discount

Price-sensitive customers are shoppers who are always on the lookout for deals and discounts. They want to be able to pick most of their favorite products at the best price possible. So they’re definitely not consumers who remain loyal to brands. They tend to go where the deals are to be able to shop more.

So the only way to bring back these shoppers to your store to buy more is to offer another appealing discount. Look into your marketing data to understand the deals you ran in the last few months, combine the performance data with your customer analytics and identify who these shoppers are.

Now it’s obvious you don’t want to endlessly offer site-wide discounts to everyone. So reach out to only this customer segment with a special discount code, a price drop alert or free shipping. This re-engages them and brings them back to your store instead of heading to another.

Here’s an example from Uniqlo:

price sensitive customer email

3. Offer one time discounts to those who didn’t make a purchase

What do you do when you see a new store’s ad on Instagram? If you like their products or the discount they’re offering, you immediately sign up for their newsletter. In some cases, you even go ahead and set up a customer account, wishlist a few products. But you don’t make a purchase!

These shoppers have the potential of being turned into customers. But what they lack is the ‘motivation’. You need to give them a bigger reason to purchase from your Shopify store, apart from the one that made them sign up in the first place.

Reach out to these shoppers with a first-time discount coupon or free shipping. This makes them see more value in buying products from your store. And gives you the opportunity to learn more about their preferences to personalize future campaigns.

one-time discounts to new customer segments

4. Bring back new customers with smart cross-sell campaigns

Bringing back holiday season or discount shoppers can be tricky. These are people who might just be making purchases because of the discounts being offered by the brand. But if they made a purchase from your store, you know what their preferences are and the products they make like. Use that data to drive them back to your Shopify store for making more purchases.

Recommend products that complement the purchase they made. For instance, if they bought a travel bag from your store, you could promote your range of travel shoes to them. When you recommend products close to their interests, they are more likely to come back for more.

Here’s an example from Dollar Shave Club:

cross sell using customer analytics

5. Re-engage inactive customers by asking for feedback and reviews

The number of brands taking their products online is increasing every day. So the typical online shopper has the choice of making a purchase from at least ten stores offering similar products. It’s easy for them to get distracted by competitive deals – that being one of the biggest reasons for them to become inactive on your Shopify store.

So if you identify customers who haven’t made purchases from three to twelve months, remember to re-engage them. While most eCommerce experts would suggest offering a discount to these shoppers, we recommend asking them for feedback and reviews instead.

By asking for feedback and reviews on the purchases they last made, you get to understand why they dropped out. You also get to identify how you could make your Shopify store better to ensure they keep coming back for more purchases.

Here’s a simple feedback template you can use:

feedback - customer analytics

Apps like Judge.me, Loox and Stamped.io can help you set up reviews on your store easily. A good review from an old customer could serve as social proof to a new customer!

6. Offer help to refunded customers

While the holiday season sees many sales being made, you’ll also notice plenty of returns and refunds being requested. The reason is that most online shoppers are in such a hurry to bag a discount that they pay less attention to the product details. Or don’t think they have enough time to ask for help to make an informed decision.

What happens is that they end up buying a product that doesn’t match their expectations or the size goes wrong. But a refund doesn’t necessarily mean you’ve lost your chance to turn these shoppers into loyal customers.

Reach out to this customer segment offering help. Let them know you’re interested in what made them return the product or request a refund. Offer them help in making the right purchase decision – be it in terms of the product altogether or the size of the product, based on what you’re selling.

Doing so does two things. First, it lets the shoppers know you care about the right product reaching them. Second, it helps you understand where you could optimize the site experience so that other shoppers don’t face the same issue.

7. Keep repeat customers motivated with rewards

No matter what deals and discounts are being offered by others, some shoppers will always make your brand their first choice. Instead of just waiting on them to come back to your store on their own, make sure marketing efforts are focused on keeping them motivated.

Repeat customers are not just more likely to easily convert, but also spend 33% more than new customers. The only thing you need to do is make them feel valued and motivate them to continue buying from you. And what’s better than rewards?

Let these customers know how they get rewarded for every purchase they make in your store. Remember to reward them with something that adds value to their next purchase – in-store credits, in-store cash or coins that can be redeemed.

If you don’t have rewards set up on your store yet, apps like Flits can get you set in minutes.

8. Nudge your active and paying customers to make more purchases

Active customers are those who have made purchases on your store within a span of two months. These are people who still remember your brand, and with a little nudge, they can be made to buy more from your store.

Keeping nudging more interactions and visits from this customer segment with re-engagement campaigns. You can do so by running email marketing campaigns, sending them a web push notification, a promotion on Facebook Messenger or simply retargeting them with ads promoting similar products to what they have purchased.

The idea is to keep your active customers, actively browsing your store. The more products they discover on your site, the more deals that attract them, the higher are their chances of re-converting.

9. Convert the cart abandoners with a sense of urgency

There are going to be many shoppers who add items to the cart, but not place an order. This could be because of multiple reasons. They could simply have been distracted by their environment or they may have found a competitive deal on another store. But that doesn’t mean you can’t re-hook their interest and convert abandoned carts into successful purchases.

Reach out to these customers with cart recovery campaigns on email, web push notifications, retargeting ads, SMS and Facebook Messenger. But remember to create a sense of urgency around the abandoned products to nudge them to act faster. Offer an additional discount or free shipping to seal the deal in no time!

Creating your customer segments from Shopify analytics

There are a number of ways to put customer analytics to work. The best one is using the data to understand who your shoppers and customers are – moving beyond the basic demographics. And actually focusing on what makes shoppers turn into customers!

But putting together data from Shopify analytics – marketing and store can be tedious. It’s manually impossible to go through every shopper’s data, tally them to your marketing campaigns, identify patterns and create segments.

That’s where RevTap comes in.

RevTap simplifies eCommerce and Shopify analytics for your store. By connecting your store, Google Analytics and Facebook to the app, you’re able to conduct an in-depth eCommerce customer behavior analysis. The app pulls together data from all the platforms, does the number crunching for you and creates clear customer segments.

customer analytics from revtap

Additionally, RevTap provides insights into how many orders each segment has placed, the revenue you’re generating from them, the average order value and the customer lifetime value under each. This helps you prioritize your marketing and store optimization efforts to focus more on customers who bring you more sales. And hence, more profits!

Turn your Shopify store data into more revenue with RevTap. Sign up today to get started for FREE and avail pre-launch discounts.
Vanhishikha Bhargava
Vanhishikha Bhargava
Vanhishikha is the Head of Content and Partnerships at RevTap. You'll usually find her hunting for strategies and tools to enable eCommerce businesses to sell more. At other times, you'll find her testing them and writing about them with a cup of coffee.

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