What is purchase-behavior segmentation?

Purchase history is among the most valuable segmentation data because it represents actual commitment, not just interest.

Recency matters most. Someone who purchased last week is in a different relationship than someone who purchased two years ago. Recent buyers are warm. Distant buyers may have forgotten you.

Frequency indicates loyalty. One-time buyers need different nurturing than repeat customers. Frequent purchasers are your best advocates and most valuable segment.

Monetary value segments by investment level. High-value customers warrant premium treatment. Budget buyers respond to different offers. Average order value helps tier your approach.

Category and product type reveal preferences. Someone who buys running shoes wants different recommendations than someone who buys hiking gear. Cross-sell within demonstrated interests.

Purchase stage matters for subscription or milestone products. New customers need onboarding. Approaching renewal? Time for retention content. Recently churned? Winback campaigns.

The RFM framework (Recency, Frequency, Monetary) is a classic approach. Score contacts on each dimension and combine for segment tiers. High-RFM customers are champions. Low-RFM customers need reactivation or sunsetting.