Segmentation is where the magic of a loyalty program happens.

Out of the box, Raleon will automatically generate 4 default Loyalty Segments. Each of these segments can be used to target a subset of your customers based on their level of existing loyalty.

• New Customers
• Loyal Customers
• Growth Customers
• Not-Loyal Customers

Raleon generates a Shopify Tag for each segment and applies that tag to each Customer in Shopify. In this way, Raleon Loyalty Segments are available for integration with any other Shopify native app, as well as for use in Shopify's Segmentation tool itself.

Segments update monthly using Raleon Copilot AI

Raleon updates Loyalty Segmentation monthly. The system keeps track of each customer's historic loyalty segmentation to improve the program over time, understanding what customer attributes drive loyalty and repeat sales.

Segmentations are determined based on an automated statistical analysis and enhanced over time using Raleon's Copilot AI as the system understands your store and customer behaviors more deeply.

New Customers

New customers are customers that have only recently transacted with you for the first time. They are the "top of funnel" customers in your loyalty program.

Objective: Convert them into maybe-loyal or loyal customers.

Strategy: Offer bonus points for their next purchase within a limited time frame. Encourage social media follows or newsletter signups for additional points.

Loyal Customers

Loyal Customers are those that spend the most money and transact with you most frequently. They've typically been doing business with you for some time and will very likely continue using your products in the future.

A common mistake is offering too many high cost rewards to your most loyal customers. These customers deserve rewards, but they also represent the highest percentage of your revenue and profit. Once your business has earned their loyalty, we recommend shifting their loyalty rewards away from high cost, margin eating rewards and to rewards that elevate their status and give them a platform to sing your praises.

Objective: Maintain their loyalty and encourage them to become brand advocates.

Strategy: Offer exclusive deals or early access to new products. Recognize and reward their social media activity. Consider creating a VIP tier for the most loyal customers. Refer their friends.

Growth Customers

The Growth segment is where you should be investing the most capital in your loyalty program. These are the customers that have transacted with you some number of times and show potential for greater loyalty, repeat sales, and more. The Growth segment will often be the largest segment in terms of number of customers (Loyal will have higher sales and profits) and also represent the most potential for driving sales, higher customer lifetime value, and profits.

Objective: Increase their engagement and push them towards the loyal segment.

Strategy: Offer points for tasks that increase brand interaction, like sharing a post or participating in a survey. Give them special offers if they make another purchase within a certain timeframe.

Not-Loyal Customers:

The final out of the box Loyalty Segment is the Not Loyal segment. These are customers that transacted with you at some point in the past but never reengaged with your brand or demonstrated the behaviors of a potentially loyal customer. This segment also represents an opportunity for growth, however, you should be very careful to not overinvest in this segment.

As your Loyalty Program matures, this segment should be divided further to isolate those customers who could be brought back to your brand (migrate from Not Loyal into Growth) versus those who are permanently lost.

Objective: Re-engage and incentivize them to interact with the brand.

Strategy: Send re-engagement emails offering bonus points for returning. Offer points for feedback to understand their lack of engagement.