In today’s competitive online marketplaces, merchants face the dual challenge of reaching new customers and retaining existing ones in a cost-effective and meaningful way. Traditional targeting methods often fall short, relying on static data or overly simplistic categorizations that fail to capture the dynamic nature of buyer behavior. Novel tools, like SyncMatic, are transforming this landscape by applying AI and enabling merchants to create precise audience segments and continuously optimize their marketing strategies. By analyzing customer purchase patterns and behaviors, AI can not only identify high-potential leads but also adapt to the evolving stages of the customer journey—from acquisition to retention and growth. Featrix brings this step within reach even if you lack expertise in AI and have very limited developer resources available.
This blog explores how merchants can harness the power of AI today to unlock smarter targeting and, in the future, leverage customer journeys for sustained success.
Online marketplaces have revolutionized commerce by providing businesses with direct access to customers at scale. However, this ecosystem is highly competitive, with merchants vying for customer attention amidst countless options. For small and medium-sized businesses (SMBs), the challenges are particularly acute:
For Small-Medium sized business (SMBs), the ability to effectively target customers, optimize marketing spend, and retain existing buyers is critical to scaling their operations sustainably.
Shopify is a leading online marketplace and e-commerce platform that enables merchants to establish and manage online stores with ease. With over 2 million merchants worldwide, Shopify provides a dynamic ecosystem of tools and third-party apps that help businesses tackle operational and marketing challenges.
Key Highlights of Shopify:
Though market leading, Shopify faces competition from other platforms, such as Amazon, Etsy and BigCommerce, which drives the need for continuously improving its value to merchants.
Despite its strengths, Shopify merchants often require external tools to address specific challenges, such as advanced customer targeting and audience segmentation.
For small merchants operating exclusively in online marketplaces, increasing sales often means finding new customers while maximizing the value of existing ones. For example, Shopify offers basic predictive analytics that categorizes customers into low, medium, and high "predicted spend tiers." While useful, this is not granular enough for creating sophisticated marketing campaigns.
Key Pain Points Include:
These challenges leave merchants looking for smarter, integrated solutions that enhance Shopify’s capabilities.
SyncMatic is an innovative solution designed to bridge the gap between Shopify’s basic analytics and the advanced targeting needs of SMB merchants. With SyncMatic, Shopify merchants can leverage their sales data to define custom audiences and execute highly targeted ad campaigns, for example using features like country or buying habits.
How is SyncMatic differentiated from Shopify and Klaviyo?
While SyncMatic’s traditional predictive analytics offered significant value, the team recognized that emerging AI technologies could enhance audience identification further. This led to a Proof of Concept (PoC) with Featrix, a solution that uses advanced embedding-based clustering to uncover deep patterns in customer data.
Beyond identifying segments among your customers, knowing the stage in the overall lifecycle of a buyer provides even stronger cues what treatment would be most effective in maintaining and growing them as customers. That journey is rarely a linear progression; instead, it often involves back-and-forth movement between stages such as new, growing, at risk, in jeopardy, lost, and (sometime) returning, as shown in the figure below. A customer may start as new, exhibit early signs of engagement, and then disengage, only to re-engage later due to a targeted campaign or external factors.
The challenge in automatically tracking a user’s stage lies in the complexity of buyer behaviors and the multiple touchpoints that influence them, both online and offline. Signals like purchase frequency, cart abandonment, email opens, or time between visits often provide incomplete or ambiguous data. Additionally, subtle context—such as seasonality, external market conditions, or changing user intent—can skew stage classifications.
As a result, applying classic machine learning to classify where any given user stands in the journey has had only limited success. Overcoming this challenge, the embedding approach to predictive analytics is able to create sophisticated models that integrate diverse data sources, identify nuanced behavior patterns, and thus empower you to adapt to the dynamic nature of customer engagement. We at Featrix are actively working on that capability - watch for a release in the near future!
By integrating AI-based solutions like Featrix, SyncMatic demonstrated its commitment to driving innovation for Shopify merchants. This collaboration not only refined the process of lead targeting but also equipped merchants with a scalable, data-driven approach to audience segmentation.
As e-commerce grows increasingly competitive, tools like SyncMatic and Featrix pave the way for SMBs to unlock their full potential, maximizing customer lifetime value through smarter targeting.