Want to boost sales by 4x and increase order values by 20%? Purchase history targeting helps CPG brands create personalized marketing campaigns based on what customers buy, when, and how often. This strategy drives better results by tailoring promotions and messages to customer behavior.
Key Takeaways:
- What It Is: Using past buying behavior to craft relevant campaigns.
- Why It Works: Proven to deliver higher ROI and customer loyalty.
- How to Start: Collect and organize data, segment customers, and build targeted campaigns.
- Compliance: Follow privacy laws like GDPR and CCPA to protect customer trust.
Quick Overview:
- Data Sources: E-commerce platforms, loyalty programs.
- Customer Segments: High-value, seasonal, loyalists, and price-sensitive shoppers.
- Channels: Google Ads, Facebook, TikTok, email marketing.
- Metrics to Track: ROAS, AOV, conversion rates, CLTV.
Learn how to collect data, build campaigns, and use AI tools to predict customer behavior. Start small, test, and refine for measurable results.
Getting Started with Purchase Data
Where to Find Purchase Data
CPG brands gather purchase data through various digital channels. E-commerce platforms like Shopify offer transaction records, insights into customer behavior, and buying trends. Loyalty programs also play a key role by tracking purchase histories and encouraging repeat business, helping brands understand customer lifetime value and buying cycles. For example, Poast Ecommerce used Rise.ai‘s loyalty program for Dish To Door, driving growth that pushed annual revenue beyond $2 million.
Once collected, it’s crucial to organize this data effectively to make it actionable.
How to Organize Purchase Data
To make the most of purchase data, structure it in a way that’s easy to analyze and act on:
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Customer Segments
- Frequency of purchases (first-time vs. repeat buyers)
- Order value categories
- Product preferences
- Seasonal buying habits
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Transaction Details
- Purchase dates
- Common product combinations
- Instances of cart abandonment
- Customer responses to promotions
Proper organization not only simplifies analysis but also ensures compliance with privacy laws.
Staying Compliant with Data Privacy Regulations
Adhering to privacy laws is non-negotiable when handling purchase data. Here are key guidelines for compliance:
CCPA (California Consumer Privacy Act)
- Clearly disclose data collection practices
- Allow consumers to opt out of data collection
- Respond to data deletion requests within 45 days
- Maintain a transparent and updated privacy policy
GDPR (General Data Protection Regulation)
- Obtain explicit consent for data collection
- Limit data collection to what’s strictly necessary
- Provide customers with access to their data and allow portability
- Notify authorities and affected parties promptly in case of breaches
To stay compliant, regularly update privacy policies, securely store data, manage customer consent effectively, and set clear data retention timelines. These practices not only protect your business but also build trust with your customers.
Building Targeted Marketing Campaigns
Customer Purchase Segments
Divide your customers based on their buying habits:
- High-Value Customers: Those who regularly make large purchases
- Seasonal Buyers: Shoppers who buy during specific seasons or events
- Product Category Loyalists: Customers who stick to certain product lines
- Price-Sensitive Shoppers: Buyers who focus on sales or discounts
These groups allow you to tailor messages that connect with their specific needs and behaviors.
Creating Custom Messages
Personalized messages work best when they reflect actual buying patterns. Here are some useful approaches:
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Timing and Context
Match your offers to customer purchase cycles, seasonal trends, or relevant cross-sell opportunities. -
Message Customization
Refer to past purchases, highlight loyalty status, or create offers that align with each segment’s preferences.
Once your messages are ready, focus on the right platforms to deliver them effectively.
Picking Marketing Channels
Using multiple channels ensures better reach and campaign success. Choose platforms that suit your goals:
Channel | Best Use Case | Key Advantage |
---|---|---|
Google Search & Shopping | Reaching active product seekers | Targets high purchase intent |
Facebook/Instagram Ads | Boosting brand awareness and sales | Offers advanced audience targeting |
TikTok Advertising | Engaging younger audiences | Potential for viral content |
Email Marketing (Klaviyo/Mailchimp) | Communicating directly with customers | Delivers high ROI for repeat buyers |
To get the best results, combine these channels while keeping your messaging consistent across all platforms. This coordinated approach helps you connect with customers at various touchpoints and reinforces your brand identity.
Measuring Campaign Results
Key Performance Metrics
Keep an eye on these metrics to gauge how well your purchase history–based campaigns are performing:
Metric | Target Range | Why It Matters |
---|---|---|
Return on Ad Spend (ROAS) | 4x or higher | Shows how profitable your campaign is |
Average Order Value (AOV) | +20% increase | Highlights the effectiveness of upselling and cross-selling |
Conversion Rate | 2–5% | Reflects how accurate your targeting is |
Customer Lifetime Value (CLTV) | Varies | Tracks the long-term value of your customers |
Once you’ve established a baseline, test and tweak your campaigns to improve these numbers.
Testing Campaign Elements
Fine-tuning your campaigns requires systematic testing. Here’s what to focus on:
- Experiment with different product images, ad copy, and calls-to-action (CTAs).
- Compare lifestyle photos to product-focused visuals to see what resonates more.
- Try out various value propositions and messaging angles.
For audience targeting, adjust and test:
- Segments based on purchase history.
- Different lookback periods to analyze past purchases.
- Frequency caps and timing strategies to find the sweet spot.
When it comes to campaign structure, test options like:
- Single-product offers versus bundled deals.
- Various discount methods to see which drives more sales.
- Different landing page designs to improve user experience.
Improving Campaign Results
Testing provides the insights needed to refine and grow your campaigns. Here are a few ways to take results to the next level:
- Integrate Klaviyo for advanced email segmentation (available in Shopify’s App Store).
- Optimize Google Ads to attract more targeted traffic.
Focus your efforts on these areas:
- Enhance content to drive more visitors to your store.
- Use upsell and cross-sell strategies to boost order value.
- Create loyalty programs that keep customers coming back.
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Common Challenges and Solutions
Fixing Data Problems
Accurate data is the backbone of effective purchase history targeting. However, common issues often arise, such as:
- Duplicate Records: Use a customer data platform (CDP) that consolidates records using unique identifiers like phone numbers.
- Incomplete Information: Address missing purchase details by requiring key fields, such as email addresses, during checkout.
Data Point | Purpose | Implementation |
---|---|---|
Email Address | Identifying customers | Make mandatory at checkout |
Phone Number | Consolidating profiles | Optional but incentivized |
Purchase Categories | Segmenting customers | Auto-tag products |
Order Frequency | Timing for targeting | Track through analytics |
Once data accuracy is ensured, you can focus on expanding personalized marketing strategies.
Scaling Personalized Marketing
With well-organized purchase data, you can scale personalized campaigns across multiple channels. To maximize reach without losing the personal touch, consider running 3–5 Google Ads and 2–4 Facebook Ads simultaneously.
Key factors to keep in mind for scaling include:
- Ensuring consistent messaging across all channels
- Using automated tools for campaign management
- Monitoring performance regularly
- Testing audience segments systematically
Connecting Data Sources
Bringing together data from various platforms is critical for maintaining a complete view of your customers. Focus on these integration points:
- Data Synchronization: Set up real-time updates across platforms like Shopify, email marketing tools, advertising platforms, and loyalty programs.
- Purchase Attribution: Use consistent UTM parameters, cross-device tracking, and tools like Google Analytics to follow customer journeys across channels.
- Automated Data Flow: Link platforms to enable accurate tracking and quick adjustments to campaigns in real time.
These steps ensure your refined targeting and scaling strategies are backed by a holistic customer view.
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What’s Next in Purchase Targeting
Emerging trends are reshaping how businesses approach targeting based on purchase history, building on established methods to deliver more precise and effective strategies.
AI in Marketing
Artificial intelligence is changing the game for purchase history targeting by processing massive datasets to anticipate customer behavior. Machine learning plays a key role by enabling:
- Predictive Analytics: Pinpointing likely product combinations and the best times for repurchases.
- Dynamic Pricing: Adjusting prices in real time based on factors like purchase frequency, cart size, and seasonal trends.
- Smart Segmentation: Automatically grouping customers into categories that adapt as new purchase data becomes available.
These AI-driven capabilities can seamlessly integrate into broader cross-channel marketing strategies.
Multi-Channel Data
As the digital world grows more complex, connecting data from various sources has become essential. Combining offline and online purchase data gives businesses a clearer picture of customer behavior. Key focus areas include:
Cross-Channel Tracking
Brands are now tracking customer interactions across multiple platforms, such as:
- Mobile app usage
- In-store purchases
- Online shopping habits
- Social media activity
This unified approach ensures consistent targeting across all touchpoints. Additionally, some retailers are sharing anonymized purchase data, helping improve inventory management and refine targeting strategies.
New Marketing Tools
Advancements in technology are making purchase history targeting easier for consumer packaged goods (CPG) brands. Here are some essential tool categories:
Tool Category | Primary Function | Key Benefits |
---|---|---|
CDP Platforms | Real-time data unification | Creates a single, unified customer view |
Smart Analytics | Automated insights | Speeds up decision-making processes |
Privacy-First Tools | Compliant data collection | Enables precise targeting while adhering to regulations |
When implementing these tools, keep the following in mind:
- Ensure they integrate smoothly with your current systems and can scale as your customer base grows.
- Opt for tools with built-in compliance features to meet data protection standards.
- Choose platforms that offer clear, measurable performance indicators.
Conclusion
Key Takeaways
Targeting customers based on their purchase history has become a central tactic in effective CPG marketing. With the help of advanced analytics, multi-channel data collection, and modern tools, brands are finding better ways to engage with their audience. Here’s what matters most:
- Combine both online and offline purchase data for a complete customer profile.
- Use targeting methods that are both effective and compliant.
- Tap into analytics to predict behaviors and create precise customer segments.
- Ensure consistent messaging across all customer touchpoints.
These elements form the foundation of a strong targeting strategy.
How to Begin
Follow these steps to kick off your targeting efforts:
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Lay the Groundwork
Review your current data collection processes and make sure your Shopify store is optimized for tracking and seamless user experiences. -
Pick the Right Tools
Choose platforms that fit your goals. Some great options include:- Email marketing tools like Klaviyo for personalized outreach
- Analytics platforms to monitor customer behavior
- Customer Data Platforms (CDPs) to unify and manage your data
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Create a Clear Strategy
Work with professionals like Poast Ecommerce to build a plan tailored to your needs. Their expertise includes:- Digital marketing strategies
- Optimizing Shopify stores
- Paid advertising campaigns
- SEO
- Automated email marketing
Start small, experiment, and grow your efforts over time. Always focus on maintaining high-quality data and respecting privacy in your communications.