Segmentation is the process of dividing a customer base into distinct groups based on specific criteria. Transaction data can be used to create segments such as:
High-Value Customers: Customers who make frequent or high-value purchases. Recent Buyers: Customers who have made a purchase within a specific timeframe. Product Preferences: Customers who have shown a preference for certain product categories.
These segments can then be targeted with tailored email campaigns to increase relevance and engagement.