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What is User Segmentation? (New vs Returning Users & Customers)
What is User Segmentation? (New vs Returning Users & Customers)

User Segmentation for New and Returning Users and Customers

Yassar Amara avatar
Written by Yassar Amara
Updated over 4 months ago

With the user segmentation feature, Tracify allows you to distinguish your metrics and performance between your new and returning users/customers. This brings another dimension to your marketing performance evaluation.

Fundamentals

The differentiation is available for all Tracify data (not ad platform data like impressions, clicks, etc.) since the final implementation of the tracking setup in your store. If a customer purchased before the Tracify implementation, Tracify sees it on the first registered purchase with Tracify implemented as a new customer. Every purchase of this customer after is considered as returning.

Furthermore, this feature allows additional KPIs to evaluate your new user and customer acquisition:

  • CAC (Customer Acquisition Cost) → How much you pay to acquire a new customer

  • New Customer Rate → How many of your visitors bought for the first time

  • New Visitor Rate → How many of your visitors were new

You are provided with these insights holistically for your store(s). As well as for each of your marketing channels and even on the campaign-, ad group & ad level. This allows you to make decisions on every level based on your new customer performance.

Refer the video below for a walkthrough of the feature

How to use the feature

Dashboard

On the top right, you find the user segment selector. Only if the new and/or returning segment is selected, you are presented with the distinguished metrics.

In some graphs, you can also see metrics split between new and returning users/customers:

Chrome Plugin

In the attribution tab at the very top, you can see the "User Segment" selector. Depending on which segment you choose, you are provided with the KPIs for the respective segment.

So, if you would like to see your new user/customer performance and CAC + New Customer ROAS, you choose "Only New". Same principle for returning users you choose "Only Returning".


FAQ

How does Tracify measure a new vs a returning visitor / customer?

The first time someone triggers a conversion after the Tracify tracking implementation, Tracify sees it as new (even if a conversion happened before the Tracify implementation)
Once someone has been a visitor in a previous timeframe and triggers another conversion, Tracify recognizes that user/customer as returning.

Exception for Shopify

On Shopify, Tracify pulls historical order data when the integration is complete. This means if Shopify marks a customer as returning, Tracify also sees it as a returning customer.

How does Tracify measure the New Visitor Rate?

If a user who was tracked in the selected period was already tracked before this period, this user counts as a returning user.

Accordingly: All visitors (100%) - Returning visitor (x%) = New customer rate (%)

How does Tracify measure the New Customer Rate?

A customer counts as a new customer if they have not yet had a touchpoint tracked by Tracify before the selected period. If they have already been tracked as a user, they count as a returning customer.

Accordingly: All customers in the period (100%) - users who have already been recorded in advance (x%) = New Customer Rate (%).

Why is the New Customer Rate that my shop system / Business Intelligence reports different from Tracify?

Tracify has its own mechanism to track and differentiate new from returning visitors/customers.

Tracify's new customer rate is higher

Tracify has tracked your conversions since the final implementation of the tracking setup. If the customer purchased before the Tracify implementation, Tracify sees it on the first registered purchase with Tracify implemented as a new customer.

Tracify's new customer rate is lower

Due to our advanced matching which is not only based on the email address but many more attributes Tracify can more accurately recognize a customer who has bought with you before. Therefore we identify customers as returning ones where your shop system reports a new customer (because he has for example used a new email address)

Why is the CAC always the same, even when changing settings?

The CAC (Customer Acquisition Cost) is a key figure that refers to the costs incurred for acquiring a new customer. This means that the CAC does not change if all customers or only new customers are considered.

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