Customer Segmentation

Reward your best customers with special shipping rates based on their purchase history, loyalty status, or account type.

VIP Customer Shipping

Exclusive shipping benefits for your most valuable customers.

Goal: VIP customers get free shipping, or discounted express options.

Implementation:

Rule: VIP Benefits

Conditions:
┌─ OR Group ───────────────────────┐
│ Customer Tag Has: "VIP"          │
│ OR Customer LTV ≥ $1,000        │
└──────────────────────────────────┘

Action:
Free Shipping - "VIP Complimentary Shipping"

Tagging: In your e-commerce platform, add "VIP" tag to customer profiles. Syncs automatically.

Wholesale Customer Rates

Special rates for B2B and wholesale accounts.

Goal: Wholesale customers pay flat $25 rate, or volume-based tiers.

Implementation:

Rule: Wholesale Shipping Tiers

Conditions:
  - Customer Tag: "Wholesale"
  - Cart Total tiers: $500-999, $1000-2499, $2500+

Action:
  Tier 1 ($500-999): $35.00
  Tier 2 ($1000-2499): $25.00
  Tier 3 ($2500+): Free Shipping

Freight for large orders (100+ lbs): Use carrier calculated freight service.

Loyalty Program Tiers

Progressive benefits based on customer loyalty.

Goal: Bronze/Silver/Gold tiers with decreasing shipping costs.

Implementation:

Rule: Loyalty Tier Shipping

Conditions:
  Bronze (1-4 orders): $6.99
  Silver (5-9 orders): $4.99
  Gold (10+ orders): Free

OR use LTV instead:
  Bronze ($0-499): $7.99
  Silver ($500-999): $4.99
  Gold ($1000+): Free

First-Time vs. Returning Customers

Welcome new customers or reward repeat business.

Goal: First-time customers get $5 off shipping welcome discount.

Implementation:

Rule: Welcome Shipping Discount

Conditions:
┌─ AND Group ──────────────────────┐
│ Customer Type = "First Time"     │
│ Cart Total ≥ $30                 │
└──────────────────────────────────┘

Action:
Fixed Rate - $2.99
"Welcome! ($5 Off Shipping)"

Reactivation campaigns: Tag customers with no orders in 6+ months, give them free shipping to win them back.

Testing Customer Segments

Test key scenarios:

VIP customer ($50 cart) → Free shipping
Wholesale (150 lb, $2000) → Free freight
Loyalty tier (7 orders, $40) → Silver rate ($4.99)
First-time ($35) → Welcome discount ($2.99)

Use Simulator: Enter customer tags, order count, LTV → Verify correct rule

Managing Customer Tags

Tag Syncing: RateTell syncs tags from your e-commerce platform (real-time on checkout, 1-hour cache).

Good Tag Names: VIP, Wholesale, Gold-Member Bad Tag Names: vip (inconsistent), VIP Customer Member (too long)

Bulk Tagging: Select multiple customers in your platform → Add tags → Auto-syncs within 5 minutes

Best Practices

Clear Priorities: VIP+Wholesale (98) > VIP (95) > Wholesale (90)

Start Simple: Begin with 2-3 segments (VIP, Loyal, Everyone else), add more as you grow

Monitor Performance: Track avg order value and margin impact per segment

Communicate Benefits: Email customers after 5th purchase: "You're now Silver! $4.99 flat shipping unlocked"

Next Steps

Questions? Email support@ratetell.com

Customer Segmentation

On this page