Identify Who Actually Buys

Find the customer profiles that convert and spend the most.

What this recipe is for

Stopping wasted acquisition by zeroing in on the types of customers who drive real revenue and lifetime value—so you target, acquire, and keep the right people.

What you’ll get

Clear customer segments that perform above average

Priority targeting rules for acquisition and retention

Early filters to avoid low-value leads

Actions to refine messaging and offers for top buyers

Key inputs

Historical customer data (demographics, source, behavior)

Conversion rates by segment or source

Average order value / spend per segment

Retention or repeat behavior per group

Acquisition cost by segment/source

Qualitative signals (common objections, purchase triggers)

Core logic

Not all customers are equal. A small subset often delivers disproportionate revenue and loyalty. By identifying who actually buys (and stays), you can spend less to get more, tailor offers, and reduce churn. Focus acquisition on high-LTV, lower-CAC profiles and deprioritize or filter out weak-fit traffic.

Step-by-step actions

Step 1: Segment your existing customers

Group by observable attributes: acquisition source, purchase size, frequency, behavior patterns, demographics, or industry (for B2B).

Step 2: Measure performance per segment

Calculate for each:

Conversion rate

Average revenue (AOV & frequency)

Retention/repeat rate

CAC (if traceable)

LTV (combine revenue and repeat behavior)

Step 3: Rank segments

Score segments by efficiency and value: high LTV, strong retention, acceptable CAC. Identify the “best buyers” and the “cost traps” (high CAC, low LTV).

Step 4: Create targeting & qualification rules

Acquisition: Double down on channels/ads that bring in high-performing segments.

Lead qualification: Filter or deprioritize leads matching low-value profiles.

Messaging: Tailor copy/offers to speak directly to the triggers and objections of top segments.

Step 5: Test expansion adjacent to best segments

Look for “lookalike” patterns—slightly broader audiences that share core traits with top buyers, then validate before scaling.

Decision thresholds / guardrails

Segment LTV : CAC < 3 : 1 → Deprioritize or fix acquisition/messaging for that group.

High volume but low retention segment → Diagnose onboarding or expectations mismatch before doubling spend.

Top segments showing early signs of fatigue or drop in value → Revalidate their behaviors and refresh offers.

New targeting expansion failing to match core metrics of best buyers → Pull back and refine criteria.

Examples

E-commerce:

Customers coming from organic search with repeat purchases and high AOV are top-tier; paid social traffic with one-off low-value buys gets filtered or reworked.

Service:

Clients who book follow-up engagements and refer others are high-value—focus outreach on industries or profiles matching their origin.

B2B SaaS:

Small teams with specific use cases convert faster and churn less than larger, unfocused enterprise leads—adjust lead qualification and landing pages accordingly.

Thinking checks

Are you spending most acquisition dollars on your top-performing segments?

Do your offers/messaging reflect what the best customers care about?

Have you eliminated or filtered low-fit traffic before it consumes budget?

Are you continuously refreshing the definition of “who actually buys” as behavior shifts?

If the answer is no…

Re-segment immediately using available data.

Build simple qualification questions or pre-filters in the funnel.

Test targeted campaigns to the best segment and compare performance.

What to track (minimum)

Conversion rate by segment

LTV and retention per segment

CAC per segment/source

Revenue concentration (top X% of customers)

Changes in segment performance over time