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What is customer segmentation? (New vs. returning customers)

In this article you find how Tracify distinguishes new and returning customers, which KPIs you get for new customers, where you select the segment and why the rate differs from your shop system.

Written by Dennis Rudolf

Customer segmentation splits your Tracify data into new and returning customers. You see at a glance which channels and campaigns bring first-time customers and what a new customer costs you.

In this article


New and returning customers

  • New customer: a customer whose first tracked purchase falls into the selected period.

  • Returning customer: a customer who already purchased before the selected period.

Tracify recognizes a customer across sessions and devices with its AI matching, not only by the email address. The segmentation is available for all Tracify metrics, from the store total down to single ads. It is not available for metrics that come from the ad platforms, such as impressions and clicks.

ℹ️ Note: Tracify knows purchases from the day the tracking went live. A customer who purchased before that and buys again counts as a new customer, unless your shop system reports previous orders: for Shopify, Tracify imports the order history, so customers that Shopify marks as returning are returning in Tracify as well.


The KPIs for new customers

KPI

What it tells you

How it is calculated

CAC (Customer Acquisition Cost)

What you pay for one new customer

Ad spend divided by the number of new customers

New Customer Rate

Which share of your customers in the period bought for the first time

New customers divided by all customers in the period

New Visitor Rate

Which share of your visitors Tracify saw for the first time

New visitors divided by all visitors in the period

All three KPIs are available per store, per channel and on campaign, ad set and ad level, so you can judge every campaign by its new customer performance.


Where you select the segment

In the dashboard, open the customer dropdown at the top left and choose All Customers, New Customers or Returning Customers. With All Customers, some charts additionally show the split between new and returning.

In the browser extension, choose the segment under User Segment in the Attribution tab. With "Only New" you see CAC and the ROAS of new customers directly in your ad platform: Choose the attribution settings in the browser extension


Why your shop system reports a different new customer rate

  • Tracify is higher: Tracify only knows purchases since the tracking went live. Customers who bought before that count as new at their first tracked purchase. Over time, this difference becomes smaller.

  • Tracify is lower: Tracify matches customers with more attributes than the email address. A customer who orders with a new email address is still recognized as returning, while your shop system reports a new customer.


Common questions

Why does the CAC not change when I switch the segment?
The CAC always refers to new customers: ad spend divided by new customers. It is the same number whether you look at all customers or only at new customers.

Can I see which channel brings the most new customers?
Yes. Select New Customers and compare the channels in the Marketing Overview or the channel dashboards. The CAC per channel shows where new customers are cheapest.

Does the segment change the attribution?
No. The preset decides how orders are attributed. The segment only filters which customers you look at: Understanding Presets in Tracify

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