Audience Metric Definitions

See what each customer metric means in Audience
Products:

Audience is based directly on the individual webshops customer behaviour.

Each metric is measured dynamically which means that the groups depend on how all customers are behaving based on all the order data available to Clerk.io.

As such, the split between when a customer is Loyal and Frequent, might change over time, depending on how often customers purchase in general.

Below is a list of definitions for each metric:

Audience segmentation based on Product Interests

  • Interested In: is one of the best metrics of Audience. Through customers’ purchase history, Clerk.io can anticipate which customers will be likely to purchase the products, brand, type of products etc. that you choose.

A simple example is this:

If Clerk.io sees that many customers buy a blue pair of shoes with a red shirt, then customers who have purchased the red shirt will show up if you find customers, who are Interested In “blue shoes”. Even though the algorithm is much more advanced than this, the point is the same.

  • Have Purchased helps you find customers who have already purchased a specific product, from a specific brand, category etc.
  • Have Not Purchased allows you to find customers who have not yet purchased a specific product, from a specific brand, category etc.

Audience segmentation based on Customer Behaviour

  1. Importance: when it comes to segmentation by importance, you choose among 4 pre-defined groups. They are based on the customers’ behaviour on your shop, whether it’s the timing between purchases, frequency of purchases, order value, or basket size.

    • VIP: these customers purchase the very most from you. They place the most orders, and buy for the largest amount in your webshop compared to other customers. VIP is roughly the top 10% of purchasers (by basket size and order value) in your webshop. The way VIP customers is calculated is: number of orders > limit above.

    • Frequent Buyer: these customers buy quite frequently from the webshop, compared to the average customer. This segment is calculated as follows: number of orders > limit above and < max(average + standard deviation x 2, 4).

    • Loyal Customer: these customers come back regularly to your webshop, but not as often as Frequent Buyers. Customers enter this segment when: number of orders > limit above and < max(average + standard deviation, 3).

    • One Time Buyer: These customers have only placed 1 order in the webshop (number of orders = 1).

  2. Life Cycle:

    • Just Ordered: these customers last order took place within the last 30 days.

    • Active: these customers regularly come back to the webshop. The timeframe of how often they come back, is based on how often the average customer places an order (last order was between 30 days and “average interval between purchases + standard deviation)

    • Slipping Away: these customers are purchasing less often than they have previously done. Meaning that if a customer normally places 3 orders each month, but suddenly only places 1 order a month, they are Slipping Away. Slipping Away is based on a rolling average of customer’s timing between purchases. Customers enter this group if last order was between the above limit and “average interval between purchases + standard deviation x 2”.

    • Lost It has been so long since these customers placed an order, that they are very unlikely to come back, unless you reactivate them. Customers fall into this group when their last order is older than above the limit

  3. Price Sensitivity:

    • Buys Cheaper Products: these costumers tend to buy products which price is lower than your store’s average. This segment is calculated as follows: average price of products bought is below store average - standard deviation.

    • Buys Average Priced Products: customers enter this segment when average price of products bought is between the above limit and store average + standard deviation.

    • Buys Expensive Products: these customers bought products average price is bigger than the store’s average (average price of products bought > above limit).

Audience segmentation based on Orders

  1. Orders Count: allows you to find customers based on how many orders they have placed. 

  2. Orders Avg. Value: helps you find customers based on what their average order value is. 

  3. Made An Order: here you can select a specific date or timeframe in which customers must have placed an order. 

  4. Made First Order: allows you to select a specific date or timeframe in which customers must have placed their very first order in the webshop. 

  5. Made Last Order: select a specific date or timeframe in which customers must have placed their last in the webshop, and haven’t come back since.