Predictive Segmentation is a revolutionary feature in Freshmarketer that leverages artificial intelligence (AI) and machine learning to analyze customer purchase data. This feature is designed for Shopify and WooCommerce direct-to-consumer (D2C) customers, enabling marketers to craft targeted strategies, personalize customer interactions, and optimize campaigns based on anticipated behaviors.

What is Predictive Segmentation?

Predictive Segmentation uses AI to process customer data, predicting future buying behaviors, preferences, and potential value. This allows for the segmentation of customers into groups based on predicted outcomes, enhancing the effectiveness of marketing campaigns.

Key Benefits

  • Customer-Centric Marketing: Focus your marketing efforts on individual customer behaviors and future actions.

  • Increased Personalization: Create campaigns that deeply resonate with your audience, leading to higher engagement and conversion rates.

  • Competitive Edge: Utilize advanced segmentation to outperform competitors in targeting and communication.

Use Cases

Predicted Customer Life Time Value (CLV)

  • Identify High-Value Customers: Target those predicted to have a high CLV with exclusive offers, enhancing loyalty and experience.

  • Budget Allocation: Direct your marketing budget towards segments showing higher CLV predictions for better ROI.

Next Purchase Date

  • Retargeting Campaigns: Engage customers predicted to make a purchase soon with personalized ads for items they are interested in.

  • Promotional Timings: Schedule promotions when customers are most likely to make their next purchase.

Churn Risk Prediction

  • Preventive Retention Campaigns: Target customers at high risk of churn with personalized retention strategies.

  • Feedback Gathering: Proactively seek feedback from at-risk customers to improve their experience and address concerns.

Average Order Value

  • Optimize Marketing Spend: Use predictive insights to focus your marketing efforts on segments with higher average order values. Tailoring your approach to these groups can maximize revenue and ensure a better allocation of your marketing budget.

  • Tailored Offers: Create special promotions or exclusive offers for segments predicted to have a higher average order value, encouraging increased spending and enhancing customer satisfaction.

Average Time Between Orders

  • Personalized Communication Timing: Adjust the timing of your marketing communications based on the predicted average time between orders for each customer segment. This ensures that your messages are timely and relevant, increasing the likelihood of re-engagement.

  • Strategic Retargeting Campaigns: Plan your retargeting campaigns around the expected time when customers are most likely to make their next purchase. This strategic timing can significantly improve the effectiveness of your campaigns and increase customer retention.

Setting Up Predictive Segments in Freshmarketer

  • Go to Contacts > Segments > Create Segment > Fill in the name of your segment

  • In the segment conditions, choose Predictive Contact Properties & choose the property with which you want to segment your customers 

Note: We have five predictive properties with which you can segment your customers. They are Predictive Churn Probability, Predictive Customer Lifetime Value, Predictive Average Order Value, Predictive Purchase Date, Predictive Average Time Between Orders
  • For example, let’s say that you want to see who your high-risk churn customers are and target them with personalized communication
  • Choose Predictive Churn Probability is High as your condition

  • Click on Save Segment, and your segment will be created 

  • Once you have the segment, you can reach out to them on the channel of their choice (Email, SMS, WhatsApp) with offers or discounts or understand the feedback about your product so that you can personalize your offering to them and convert them to a low churn risk customer 

Setting up a Journey with Predictive Segments in Freshmarketer

  • Go to Customer Journeys > Create Journey

  • Name your Journey > Add Conversion Goals (if you want to) > Click on Next

  • Choose Added to Segment as your trigger (Choose the Segment that you created for any of the predictive properties)

  • In the Actions tab, you can choose to reach them by Email, SMS, or WhatsApp

  • Personalize your message to this segment and once they have clicked on it or read your message, exit them from the journey