How to segment customers and create an audience for targeted marketing campaigns?

Updated September 20, 2023.

This page explains Ellis use cases how to segment customers and create an audience for targeted marketing campaigns.

  • Customer segmentation basics
  • How to segment customers?
  • RFM segments in Ellis
  • How to create a target audience for a marketing campaign?

Customer segmentation basics

Creating customer segments, analysis, and actions based on segmentation is one of the most important use cases D2C merchants can do with Ellis.

Customer segmentation is the process of separating customers into groups based on the traits they share.

Segmentation offers a simple way of organizing and managing your company’s relationships with your customers. This process also makes it easy to tailor and personalize your marketing efforts to the needs of specific groups. This helps boost customer loyalty and conversions.

How to segment customers?

Customer segmentation with built-in RFM segments can be done with the following steps:

  1. Go to the Customer Segmentation tool 
  2. Select existing or create new segment 
  3. Select timeframe with Current Period filter
  4. Select ready-defined RFM segment


RFM segments in Ellis

RFM stands for Recency, Frequency, and Monetary value, each corresponding to some key customer trait. These RFM metrics are important indicators of a customer’s behavior because the frequency and monetary value affect a customer’s lifetime value, and recency affects retention, a measure of engagement. 

RFM factors illustrate these facts:

  • the more recent the purchase, the more responsive the customer is to promotions
  • the more frequently the customer buys, the more engaged and satisfied they are
  • monetary value differentiates heavy spenders from low-value purchasers

Ellis has several predefined RFM segments and the possibility to filter segments in more detail.

The selected segment can be further filtered by more than 25 different filters (e.g. CLV, AOV) to capture as targeted audience for the actions as possible.

Filtering can be done from Customer Segmentation dashboards as follows:

Customer segments filter 2


How to create a target audience for a marketing campaign?

Selecting the target audience for a marketing campaign

  1. Select Customer Segments and filters as described above
  2. Click the Customers KPI metric to open a list of customers in the segment
  3. Download data in desired format e.g. as a CSV file
  4. Import data to the marketing automation tool of your choice.