Ground your strategy in a business goal
Your business goal is what gives your segmentation strategy direction. It helps you clarify which audience to target and which behaviors to look for. Without a goal, it's easy to build segments that feel useful but don't tie back to a specific outcome.
Some brands have a clear top-down goal set by their leadership team, like increasing repeat purchases or reducing churn. If that's you, use it. If not, look at your data. Identify metrics that are underperforming, such as a low conversion rate or a high cancellation rate. These signal where a targeted campaign or action could have the most impact, and that's the goal your segmentation strategy should support. The key question to ask is: what outcome do I want my segments to help drive?
Match your goal to the right behaviors
Once you've defined your goal, the next step is to identify the customer behaviors and properties that directly support it. Customer behaviors (like added to cart or viewed product) and properties (like location or product preferences) help you target the audience who is most relevant, most ready, or most likely to take the next step you care about.
Browse the gallery below to explore 5 common business goals, the problem metrics that signal each one, the customer behaviors linked to it, and examples of segments you could build.
Increase sales and conversions
If your goal is to increase sales, your segments should help you identify and reach people who are showing interest but haven't yet made a purchase.
Associated problem metrics:
- Low conversion rate
- Low placed order rate
- Low list growth
Linked behaviors/properties:
Browsing activity, such as:
- Active on site
- Viewed product
- Added to cart
- Sign-up source
Example segments:
- Window shoppers who browse but don't buy
- New leads who haven't converted
- Giveaway participants
- Contacts who added items to a wishlist
Retain customers and increase customer lifetime value (CLV)
If your goal is to retain customers and increase CLV, your segments should help you identify buyers who are at risk of not returning and re-engage them before they churn.
Associated problem metrics:
- High churn rate
- Low repeat purchase rate
- Low average order value (AOV)
- Low CLV
Linked behaviors/properties:
Purchase history, such as:
- Number of purchases
- Average order/cart value
- Product/collection affinity
- Predicted CLV
Example segments:
- Cross-sell opportunities
- One-time purchasers
- Bargain hunters
Reduce subscription churn
If your business sells subscriptions and your goal is to reduce subscription churn, your segments should help you spot early warning signs and reach subscribers before they cancel or downgrade.
Associated problem metrics:
- High subscription cancellation rate
- Increased subscription downgrades
Linked behaviors/properties:
Logged-in activity, such as:
- Subscription status changes
- Login frequency
- Support ticket activity
Example segments:
- Active subscribers showing early churn signals
- Subscribers who recently downgraded
- Subscribers approaching their renewal date
Increase direct bookings
If your business is in the hospitality industry and your goal is to increase direct bookings, your segments should help you identify guests who are most likely to book directly with you instead of through third-party platforms.
Associated problem metrics:
- Low direct booking rate
- High percentage of bookings through third-party platforms
- Low returning guest rate
Linked behaviors/properties
Engagement with owned channels, such as:
- Visited direct booking page
- Newsletter engagement
- Loyalty program membership
Example segments:
- Past guests who booked directly
- Guests from third-party platforms who've joined your email list
- Loyalty program members
Drive off-peak sales and bookings
If your goal is to drive off-peak sales or bookings, whether you're in retail, hospitality, or any seasonal business, your segments should help you reach customers who are open to purchasing or booking during quieter periods.
Associated problem metrics:
- Low sales or occupancy during off- seasons
- High concentration of revenue in peak season
Linked behaviors/properties:
Seasonal engagement patterns such as:
- Past transaction dates
- Browsing activity during promotional periods
- Engagement with discount or sale campaigns
Example segments:
- Customers or guests who previously purchased during off-seasons
- Price-sensitive shoppers
These are just a few examples to get you started. Your business may have a different goal or a unique combination of behaviors that fits your strategy. No matter which goal you're working toward, the process is the same: start with the outcome you want to drive, identify the metrics that signal a problem, and select the customer behaviors that help you reach the right audience.
Verify your knowledge
Test your understanding by sorting each customer behavior into the business goal it best supports.
Now that you can connect a business goal to the right customer behaviors, you're ready to put the custom segmentation formula into action. In the next lesson, you'll learn how to translate these components into conditions in the Klaviyo segment builder.