What segmentation criteria should we consider when dividing our customer database for custom audiences?

When dividing your customer database for creating custom audiences, it's essential to consider segmentation criteria that are relevant to your business goals and target audience. Here are some criteria you can use to segment your customer database:

1. Demographics: Segment your audience based on demographic factors such as age, gender, location, education, or occupation. This can help you target specific groups of users who are more likely to be interested in your products or services.
2. Purchase history: Segment your audience based on their purchase history, such as the frequency, recency, or value of their purchases. This can help you target high-value customers, re-engage lapsed customers, or promote upsell or cross-sell opportunities.
3. Engagement level: Segment your audience based on their engagement level with your brand, such as website visitors, email subscribers, or social media followers. This can help you target users who have already shown interest in your brand and are more likely to convert.
4. Behavior: Segment your audience based on their behavior, such as browsing or search history, product or category interest, or cart abandonment. This can help you target users with more personalized and relevant ads based on their specific interests and needs.
5. Lifetime value: Segment your audience based on their lifetime value (LTV) to your business, which is the estimated revenue a customer will generate over their entire relationship with your brand. This can help you prioritize high-value customers and allocate your advertising budget more efficiently.
6. Lookalike audiences: Create lookalike audiences based on your existing customer segments to reach new potential customers who share similar characteristics with your current customers. This can help you expand your reach and acquire new customers more efficiently.
7. Custom combinations: Create custom combinations of the above segmentation criteria to create highly targeted and relevant custom audiences. For example, you can target high-value female customers aged 25-34 who have made a purchase in the last 30 days and are interested in a specific product category.

By considering these segmentation criteria, you can create more targeted and relevant custom audiences that are more likely to engage with your ads and convert, leading to more successful and efficient advertising campaigns.