Predicted spend tier

Predicted spend tier is a prediction of your customers' spending potential in the future.

Predicted spend tier is estimated by analyzing your customers' past interactions with store including the following:

  • how often a customer made purchases
  • how much the customer spent on average per order compared to the overall average spent per order
  • how many orders the customer placed
  • how recently the customer placed their last order

If your store qualifies for predicted spend tier, then after the predictions are made, your customers are categorized into the following tiers:

  • High
  • Medium
  • Low

Predicted spend tier and customer segmentation

You can use the predicted spend tiers in conjunction with customer segmentation to group similar customers together into a customer segment.

For example, if you want to create a customer segment of your high-value customers who subscribed to your marketing email, then in the editor on the Customers page, you enter the following:

predicted_spend_tier = 'HIGH' AND email_subscription_status = 'SUBSCRIBED'

Learn more about customer segmentation.

Using predicted spend tier to make strategy decisions

You can use predicted spend tier in the following ways to develop strategies for increasing your sales:

  • to analyze which customers are of high value to your store so that you can include them in a valued-customer marketing campaign
  • to convert low-value customers into medium-value customers, and medium-value customers into high-value customers
  • to encourage customers in a particular tier to make more purchases by offering them promotional codes for exclusive products
  • to determine what type of products customers in a particular tier buy and offer those customers discounts on similar products

Understanding the value of a customer can help you to budget how much you should spend on acquiring new customers and to analyze the return on investment (ROI) from your marketing efforts.

Can't find answers you're looking for? We're here to help you.