RetentionGrid – the 7 Segments Explained

Jake StottRetentionGrid Segments

The RetentionGrid is e-commerce segmentation done easily. There are 7 segments to the RetentionGrid that clearly divide up your customer base, we call this the Grid religion. Each segment has a different relationship with your store and we help you to see that instantly.

This post should give you an overview of the different segments and an overview of their needs. We also have other posts that deep dive in best practices for each segment, so also check them out.

RetentionGrid – The Grid Religion

loyal

Loyal – These are customers who have ordered four or more times within the last ninety days. They are the best source of referrals and the most likely to try and love your new products. They are also the most responsive to upselling and cross-selling. Campaigns for customers in this category can include sharing of exciting news, asking for reviews or ratings, or inclusion in a customer loyalty program.

promising

Promising – Customers in the Promising segment have ordered two to three times in the last sixty days. Campaigns for this segment may include exclusive offers, free shipping, and product recommendations based on previous purchases.

New

New – This segment contains customers who have ordered once within the last thirty days.  Customers who purchased only once show a very low chance of returning to make a second purchase. Begin building the relationship soon after your customers place their first order. Don’t start selling again immediately — take a little time to create an emotional connection and give them reasons to fall in love with your brand. Reiterate your gratitude for their last purchases, and remind them of any special care or usage instructions.

drifting

Drifting – The customers in the drifting category have ordered one to three times in the last 31-90 days. Your goal is to draw them back by creating campaigns that recommend popular products or offer a limited-time discount.

At Risk

At-Risk – This segments consists of customers who have placed four or more orders in the last 91-365 days. It is important to reach out to this segment to see what happened. Perhaps send a survey or reach out personally to understand why they have not returned. You can also try to bring them back by offering discounts with a minimum purchase value.

Red Alert

Red-Alert – These customers placed four or more orders over a year ago. Personal outreach is critical to learn their reasons for leaving so you can identify trends.

Sleepers

Sleepers – The sleeper segment is made up of customers who have placed one to three orders more than ninety-one days ago. Be persistent with this segment. Send emails with bold subject lines to command attention.

 

Now you know exactly what each segment means, check out our other posts for the next steps. You can easily target your segments, setup triggered campaigns and add in advanced filters. See you on the next post!