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Customer Lifecycle Segmentation & Smart Engagement Strategies

Updated over 2 weeks ago

Define Who to Welcome, Re-Engage, or Suppress

Understanding where your customers are in their journey is key to effective communication. Customer lifecycle segmentation lets you group customers based on their engagement stage — and send the right message at the right time. Unlike RFM models, this approach provides an easy-to-use, streamlined 8-segment framework.

Every customer moves through a journey:

  1. Sign-up – initial brand discovery

  2. First purchase – testing the waters

  3. Repeat purchases – building trust

  4. Decreasing activity – early signs of churn

  5. Churn – no longer buying

By identifying each customer’s stage, you can enable personalized marketing strategies designed to improve engagement and conversion rates. Here's how to put lifecycle segmentation to work for your business.

How Segmentation Works

Segments are defined using just three simple metrics:

  • Time since registration

  • Time since last purchase

  • Total number of purchases

Based on these, customers fall into one of eight lifecycle segments:

  • New – 1 order

  • New – 2+ orders

  • New – no orders

  • Promising

  • Active

  • Loyal

  • At-risk

  • Churned

  • Inactive (No Orders)

Segment thresholds are automatically calculated based on your brand's industry, considering the average number of orders and time passed between those orders.

If an industry isn’t specified in the brand settings, default thresholds are used, derived from cross-industry performance benchmarks.

Let's use the apparel store customers as an example to understand how segment thresholds are defined:

Example: Fashion Industry (Apparel, Shoes & Accessories)

Segment

Description

Thresholds (Fashion Industry)

New – no orders

Recently signed up but never purchased

  • Registered ≤ 30 days ago

  • No orders

New – 1 order

Just made their first purchase

  • Registered ≤ 30 days ago

  • 1 order

  • Last order ≤ 30 days ago

New – 2+ orders

Quickly converted and repurchased

  • Registered ≤ 30 days

  • 2+ orders

  • Last order ≤ 30 days

Promising

Long-time users with low purchase frequency, recent order

  • Registered > 30 days

  • 1 order

  • Last order ≤ 120 days

Active

Steady buyers with moderate frequency

  • Registered > 30 days

  • 2 orders

  • Last order ≤ 120 days

Loyal

Top-performing, highly engaged customers

  • Registered > 30 days

  • 3+ orders

  • Last order ≤ 120 days

At-risk

Starting to slip away

  • Registered > 30 days

  • 1+ orders

  • Last order 120–255 days ago

Churned

Unlikely to return

  • Registered > 30 days

  • 1+ orders

  • Last order > 255 days

Inactive (no orders)

Signed up long ago, never made a purchase

  • Registered > 30 days

  • 0 orders

You can find the actual segment thresholds for the brand in the Business Metrics report.

  1. Business Metrics → Customer Segments

Hover over a segment name to see a tooltip with exact thresholds. Click the link to view the filter conditions.

  1. Business Metrics → Customer Segments → Segments Report

  • On the Business Metrics page, find the "Customer Segments" section and click "Segments Report".

  • The “Segments Report” opens.

  • Hover over a segment name to see a tooltip with exact thresholds. Click the link to view the filter setup.

Segment-Based Engagement Strategies

Set up personalized campaigns for each segment to increase retention and drive lifetime value.

Let’s explore strategies for lifecycle segments and the key business metrics to track when evaluating campaign performance.

Segment 1: New Users

  • Goal: To capture attention and encourage the first purchase.

  • Who: Recently registered, no purchases yet

  • Key Metric: First purchase conversion rate

What to Do:

  • Create a welcome series of 3–5 campaigns to encourage customers to place their first order. Use a cascade (e.g. first send email, if unopened → web push, if still unopened → mobile push, then SMS) to maximize reach and minimize cost.

  • Offer exclusive first-purchase discounts or bonus points;

  • Highlight brand benefits and social proof;

  • Use limited-time offers to create urgency.

Success Stories:

Segment 2: Active Customers

  • Goal: Improve customer retention, encourage repeat purchases and boost AOV (Average Order Value)

  • Who: Recently made a purchase

  • Key Metrics: Repeat purchase rate, AOV (Average Order Value), purchase frequency

What to Do:

  • Set up flows based on abandoned sessions with increasing discounts;

  • Send personalized product recommendations 7–14 days post-purchase;

  • Use personalized content: сelebrate birthdays, use names, and offer product recommendations;

  • Show appreciation for your customers' engagement and ask for feedback via surveys

Success Stories:

Segment 3: At-Risk

  • Goal: Understand why customers are becoming less active and Re-engage them before they churn

  • Who: Recent buyers who are no longer active

  • Key Metrics: Open/click rates, size of At-Risk segment

What to Do:

  • Launch reactivation campaigns with personalized discounts after 90 days of inactivity

  • Recommend new arrivals the customer may be interested in.

  • Collect feedback on why activity dropped

  • Escalate offers over time (new products → discounts → exclusive offers)

Success Stories:

Segment 4: Churned

  • Goal: Attempt win-back or, if there's no interest, end communication on a respectful note.

  • Who: Customers whose last purchase was a long time ago

  • Key Metrics: Open/click rates, Churned segment size

What to Do:

  • Send winback offers with deep discounts (up to 30%) after 180 days of inactivity

  • After 6+ months of non-engagement, reconfirm subscription status

  • Delete unengaged contacts to protect sender reputation

Success Stories:

Segment 5: Inactive (No Orders)

  • Goal: Convert to first purchase or gracefully end communication

  • Who: Signed up but never purchased

  • Key Metrics: Open/click rates, Inactive (No Orders) segment size

What to Do:

  • Launch re-engagement campaigns for recently registered or recently active customers.

  • Delete inactive customers to maintain sender reputation.

Suggested flows:

  • Winback

Anonymous Visitors

  • Goal: Turn unknowns into subscribers

  • Who: Site/app visitors with no profile

  • Key Metric: Contact collection rate, notification subscriptions

What to Do:

  • Set up exit-intent popups (triggered when visitors attempt to leave) with lead magnets to capture abandoning visitor contacts

  • Use web push for direct browser communication

  • Capture contacts via signup forms, popups, and web push notifications

Success Stories:

Measuring Campaign Effectiveness

  • Monitor KPIs in Business Metrics Dashboard

  • Set up A/B tests

Disclaimer: This guide is based on real-world client cases across various industries. The results you get may depend on the business model and how well the campaign is executed.

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