How to strategically target low, medium, and high lifetime value tiers

Last updated: July 16, 2025

Overview

Segmenting customers by lifetime value (LTV) and using LTV-based trigger filters or conditional splits in automations enables precise targeting, better campaign performance, and more efficient retention strategies. By categorizing customers as high, medium, or low value based on total spend, you can tailor engagement, limit discount exposure, and maximize ROI.

This article explains how to build and use LTV-based segments for optimal results in your retention marketing programs.

Why LTV segments are important

Understanding and segmenting customers by lifetime value (LTV) allows you to optimize retention strategies, maximize ROI, and tailor messaging.

LTV segmentation divides your customer base into tiers based on their total spend with your brand. Use your store's data to guide your tier band selection. Typical tier bands are:

  • High LTV: $500+

  • Medium LTV: $100-$499

  • Low LTV: Under $100

Use LTV segmentation when prioritizing campaigns for top-tier buyers, moving mid-tier customers up the value ladder, or controlling discount exposure in low-value segments. Each segment requires a distinct approach to campaign targeting, discounting, and engagement.

Regularly refine segment definitions as average order value and customer base evolve.

Step one: Build LTV-based segments

Create the following segments:

  • High LTV Customers: Customers with total spend greater than $500.

    • Contact Properties > Lifetime Value > is greater than > 500.00

  • Medium LTV Customers: Customers with total spend between $100 and $499.

    • Contact Properties > Lifetime Value > is greater than > 99.99, AND

    • Contact Properties > Lifetime Value > is less than > 500.00

  • Low LTV Customers: Customers with total spend less than $100.

    • Contact Properties > Lifetime Value > is less than > 100.00

Step two: Develop tailored engagement strategies

Use the segments you created in step one as the audience for LTV targeted campaigns.

You can also set up multiple, tier-based versions of your behavior-based automations like abandoned checkout and order placed with trigger filters that require a certain LTV to trigger.

Here's how we suggest you tailor content for your LTV tiers:

High LTV customers ($500+)

  • Send early-access and exclusive product launches.

  • Target with high-value win-back offers.

  • Use limited-time promotions for high-margin products.

Expected outcome: Higher campaign conversion rates and stronger ROI on premium campaign targeting.

Medium LTV customers ($100–$499)

  • Nurture toward higher spending with product recommendations based on previous purchases.

  • Use milestone incentives to encourage the next purchase.

  • Deploy re-engagement sequences for lapsed buyers in this tier.

Expected outcome: Increased engagement and greater potential for customers to ascend into the high LTV segment.

Low LTV customers (<$100)

  • Limit access to heavy discounts and reserve high-value offers for higher tiers.

  • Use educational content or bundle offers to increase average order value.

  • Exclude from VIP or exclusive campaigns where ROI is a priority.

Expected outcome: Minimized discount abuse and improved efficiency in re-engagement efforts.

Step three: Deploy segments in campaigns and refine automations

  1. Targeted email/SMS campaigns: Use LTV segments as the audience for email and SMS product launches, win-back, or reactivation campaigns.

  2. Filter automations: Add trigger filters to automations based on LTV status, such as loyalty rewards for high-value buyers or re-engagement series for low-value segments.

  3. Add conditional logic to automations: Within automations, add conditional splits to deliver different messaging or incentives depending on the recipient’s LTV segment.

Step four: Measure and optimize segment performance

Monitor conversion, revenue, and engagement metrics for each LTV-based campaign and automation to evaluate campaign performance and ROI.

As customer behavior and average order value shift, review and adjust your segment thresholds to keep them aligned with your business goals. Continuously refining your segments and strategies ensures maximum effectiveness and relevance.