Customer Segmentation in Ecommerce: Why You Need It and How to Use It on Shopify
- Arslan Tahir
- May 26, 2025
- Classic, Web Design
- 0 Comments
Customer Segmentation in Ecommerce: Why You Need It and How to Use It on Shopify
Discover how segmenting your customer base can help you craft targeted communication that resonates with individual needs. Learn how customer segmentation in e-commerce to applies especially for Shopify stores, and explore effective techniques to implement it.
Imagine this: a customer purchases a monthly supply of specialised dog food for sensitive stomachs from an online store. Now, consider two different follow-up experiences.
In the first scenario, the customer receives a timely email reminder just before they run out, offering the same dog food at a 10% discount. When they add it to their cart, they’re also shown relevant treats suitable for dogs with sensitive stomachs. Pleased with the experience, the customer completes the purchase and feels encouraged to return.
In the second scenario, the customer gets no reminder. They only return to the store once the food runs out, then struggle to locate the right product. While browsing, they’re shown unrelated promotions for products their dog can’t use. Frustrated, they may abandon their cart—or buy something but consider switching to another pet store.
According to a Researchscape survey, 88% of marketers acknowledge that consumers now expect personalised experiences. No matter how sleek or fast your store is, you risk losing business without tailored messaging.
The key to delivering that level of personalisation? Customer segmentation.
What is customer segmentation?
Customer segmentation means splitting your customers into smaller groups based on certain things they have in common. These could be things like their age, location, what they’ve bought before, how often they visit your site, and so on.
Once you’ve grouped them, you can talk to each group differently — in a way that makes sense for them. That includes emails, offers, product suggestions, or even on-site pop-ups.
This approach isn’t just good practice — it’s essential if you want to run a successful e-commerce business today. It helps keep your marketing sharp and your customers engaged.
Types of Customer Segmentation in ecommerce
There’s more than one way to split your customer base. Let’s go through the main types of customer segmentation in e-commerce:
1. Demographic Segmentation
This one’s the classic. You group people based on things like age, gender, income level, education, or job role.
For example, you might send different email offers to students versus working professionals — each with content that suits their lifestyle and budget.
2. Behavioural Segmentation
Here, you look at what people actually do on your site. What do they browse? What do they buy? How often do they return?
There could be people who buy only in sales or another group that frequently shops for full-price products. Knowing this will help you organize your promotions and better timing.
3. Psychographic Segmentation
This goes a bit deeper. It’s about people’s values, interests, and lifestyle choices.
Let’s say you run a sustainable fashion brand. It is possible to classify customers according to how much they value environmentally friendly products. You can then customise your messages to highlight products that are ethically sourced, ethically sourced and have low-waste packaging.
4. Geographic Segmentation
Sometimes, location matters. People in the north of England might need different products in winter than residents in the south. Or maybe you only ship to certain regions — you wouldn’t want to show ads to people outside that range.
It’s also helpful when you’re running regional promotions or planning delivery schedules.
5. Firmographic Segmentation
This one’s useful if you’re selling B2B (business to business). You group companies based on their size, industry, or type.
For example, small local bakeries will have different needs than national restaurant chains — even if they’re both in food services.
6. Technographic Segmentation
This type is based on the devices, browsers, or software your customers use.
If a lot of your traffic comes from mobile users, make sure your mobile experience is smooth. If your audience loves certain social media platforms, you might focus your efforts there.
7. Value-Based Segmentation
This means grouping customers based on how much value they bring to your business.
For example, your high-value customers (the ones who shop regularly or spend more) might get early access to sales, loyalty perks, or priority support.
8. Needs-Based Segmentation
Sometimes, customers buy your product for very different reasons. Maybe some people come to your skincare site for acne products, while others want anti-ageing solutions.
By identifying their needs, you can show each group the most relevant options right from the start.
Why is customer segmentation important for ecommerce?
Let’s be real — no two customers are the same. They have different habits, needs, and preferences. If you try to market to everyone in the same way, you’ll end up reaching no one properly.
When you segment your customers, your marketing feels more relevant. Emails are more likely to be opened, ads get better results, and your overall experience becomes smoother and more helpful.
It’s not about just selling more; it’s about establishing trust and lasting relationships. Customers return when they feel valued. That’s precisely what segmentation can help you achieve.
Why is customer segmentation important for ecommerce?
Let’s be real — no two customers are the same. They have different habits, needs, and preferences. If you try to market to everyone in the same way, you’ll end up reaching no one properly.
When you segment your customers, your marketing feels more relevant. Emails are more likely to be opened, ads get better results, and your overall experience becomes smoother and more helpful.
It’s not about just selling more; it’s about establishing trust and lasting relationships. Customers return when they feel valued. That’s precisely what segmentation can help you achieve.
Key Benefits of Customer Segmentation in Ecommerce
1. Better Personalization
When you understand who your customers are, it’s easier to send them messages that make sense. It’s the difference between a generic “Hey shopper” email and “Hi Sarah, here’s a restock of your favourite shampoo”.
2. Improved Customer Retention
When people feel like your store “gets” them, they stick around. Simple as that. Returning customers are also cheaper to market to than new ones.
3. Higher Conversion Rates
If your offers and suggestions are on point, people are more likely to buy. For example, showing dog treats for sensitive stomachs to someone who already buys that kind of dog food — that’s an easy win.
4. Smarter Marketing Spend
Segmentation helps you spend your marketing budget where it counts. No more wasting money on ads or emails that don’t land with the right people.
5. Better Product Recommendations
You can suggest items based on what someone has already bought or shown interest in. This can boost your average order value and keep customers discovering new things.
6. Increased Customer Satisfaction
No one likes getting bombarded with irrelevant offers. Segmentation cuts through the noise and offers things that actually make sense to each customer.
How to Get Started with Customer Segmentation
If you’re running a Shopify store or any other e-commerce site, the good news is — segmentation isn’t hard to set up. You can use tools and apps that connect to your store and automatically group customers based on their activity, location, or purchase history.
Start small. Pick just two or three key segments and build from there. Look at your best customers and figure out what they have in common. From there, shape your emails, pop-ups, and product suggestions to fit.
At Media Quokka, we help e-commerce brands grow by making their customer experience smarter — segmentation is a big part of that. Whether you’re just starting or need help improving your Shopify setup, we can help you reach the right people with the right message.
Remember, the goal isn’t to over-complicate things. You just want your store to feel helpful, thoughtful, and personal.
And if you already use email marketing or on-site targeting, segmentation can double your impact without doubling your effort.
Frequently Asked Questions
How does ecommerce customer segmentation work?
Customer segmentation in eCommerce is the process of dividing customers into distinct groups based on behaviors, demographics, or preferences to tailor marketing and improve sales.
Why is customer segmentation important for online stores?
Segmentation allows online stores to deliver more relevant and personalised experiences. This improves customer engagement, retention, and conversion rates.
In what ways does customer segmentation help increase sales?
It lets you target people with offers they care about, which makes them more likely to buy. It also cuts down cart abandonment and lifts order values.
What tools can I use for ecommerce customer segmentation?
Platforms like Shopify, Klaviyo, and Mailchimp offer built-in tools for customer segmentation. They let you automate targeting based on behavior, location, and purchase history.
Can small ecommerce businesses benefit from segmentation?
Yes, even small stores can benefit from simple segmentation strategies. It helps build stronger customer relationships and grow revenue with minimal extra effort.
