How Top E-Commerce Brands Use Customer Insights for Growth

Plants growing out of charts and dataIn the world of e-commerce, one of the most underutilized assets is customer data. Leveraging this goldmine not only enhances personalized marketing experiences, leading to increased customer retention, but can also be used to uncover opportunities to find new customers that mirror your best customers. This approach can substantially increase your average order value, customer lifetime value, and improve return on ad spend.

Consider the case of YouFoodz, which saw a staggering 3000% increase in revenue by adeptly using customer data to boost customer retention. Furthermore, McKinsey’s research reveals a compelling narrative: over 76% of consumers are influenced by personalized brand communications in their purchase decisions, with 78% indicating that such tailored content spurs repurchase.

However, a common hurdle for e-commerce business owners is not knowing where to start with leveraging their customer data and sifting through the most relevant data points. This article will take you through effective strategies to use your customer data for attracting new, high-value customers and highlight the most impactful ways to utilize this data for your business’s growth.

Step 1: Identify your key customer segments and patterns

The first step in leveraging customer data is identifying your best customers through customer segmentation. RFM (Recency, Frequency, Monetary) analysis is an effective approach for this, ranking customers by purchase recency, frequency, and monetary value to highlight your most valuable segments. We won’t go into detail here, but for an in-depth walkthrough of the RFM analysis process, refer to Shopificity’s customer segmentation guide.

After pinpointing your best customer segment, the next step is to identify the key demographic and behavioral patterns common among them. Often, business owners are uncertain about which data points to prioritize due to the abundance of available information, so we’re here to shine some light on that.

Key demographic patterns to consider include age, geographical location, and occupation. Equally important are behavioral patterns such as the first product purchased, marketing acquisition channels, and reactions to specific promotional offers. For detailed insights on the differences between demographic versus behavioral patterns and the most effective patterns to focus on, visit Shopificity’s guide on customer segmentation analysis.

With the demographics and behaviors of your top customer segment identified, it’s time to explore new opportunities to attract similar customers. The upcoming section will outline strategies that apply these insights to your marketing efforts, helping you find and attract new, valuable customers efficiently.

Step 2: Leverage insights to attract new customers

With a clear understanding of your top customers, you’re well-equipped to deploy targeted strategies for attracting similar high-value customers. Below are effective tactics driven by specific customer insights:

Targeted Abandoned Cart Email Campaign

By identifying the initial products your best customers tend to purchase, you can craft specialized abandoned cart emails offering extra incentives on these products. Such campaigns can significantly impact your bottom line. For example,’s campaign successfully converted 29% of abandoned carts into sales, underscoring the power of personalized email efforts.

Promotional Offers

Distinguish which promotions attract loyal customers versus deal-seekers. Tailoring your promotions accordingly can more effectively appeal to potential high-value customers.

Highly Targeted Lookalike Audiences

Utilize platforms like Google Ads and Facebook to create lookalike audiences modeled after your best customer segments. This approach, focusing on your top customers rather than a general audience, can significantly enhance the conversion rate and quality of customers acquired through your campaigns.

More Effective Ad Offers

Leverage your first-product analysis to inform your ad campaigns. Highlighting products that resonate with your best customer segment in your ads can attract similar high-value customers.

These strategies demonstrate how even a few key insights about your best customers can lead to impactful tactics for attracting new, high-value customers. While this is not an exhaustive list, it serves as a starting point. With a bit of creativity, there are numerous ways to utilize your customer data to elevate your marketing efforts.


Effectively leveraging customer data is a game-changer for e-commerce businesses. It’s not just about retaining existing customers but also about finding new ones who are just as valuable. From YouFoodz’s remarkable revenue growth to the success stories like, the evidence is clear: understanding and using customer data can lead to significant business growth.

Achieving success through customer data leverage demands a long-term dedication to evaluating and refining strategies, influenced by customer behavior and feedback. This is a continual journey, but the rewards, including enhanced customer lifetime value and increased average order values, are well worth the effort. We encourage you to embrace and experiment with these strategies, and explore the possibilities they unfold. Feel free to share your experiences and insights in the comments. We’d love to hear about your journey and results.

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