Determine relevant analytical axes
Segmentation allows you to enrich your data and compare your KPIs (MRR, churn, LTV, etc.) by relevant sub-groups. But which axes should you create and analyze first? Here is a practical guide to help you choose the most useful dimensions.
1. The most common segmentation axes
a. Native axes
These axes are automatically available because they come from your billing data. However, they may require some cleaning (standardizing product, plan or country labels) or grouping (e.g., merging several variants under a single category).
Products : analyze LTV, ARPU or churn by product to identify the most profitable modules. Example : observe that customers using product X have churn that is 2× lower than others.
Pricing plans : compare the performance of your offers (monthly vs annual, premium vs basic), track churn or check if some plans are under-monetized. Example : notice that the monthly Standard plan has higher churn than the Annual Pro, but generates more expansions.
Geography : available via billing addresses, with the ability to group by regions. Example : discover that your North American customers have an ARPU 30% higher than European customers.
Time cohorts : created automatically based on acquisition date, they allow you to track retention, churn or expansion over time. Example : observe that customers acquired in Q1 2023 have better retention than those acquired in Q3 2023.
b. Axes to enrich
These axes are not present in your invoices. You can add them in two ways:
From your billing tool, by creating metadata that will automatically surface in Fincome.
Directly in Fincome, via the Analytical axesfeature, where you can enrich your customers, subscriptions or products with custom attributes.
Acquisition channels : compare LTV or churn according to the acquisition source. Example : find that customers from SEO generate an LTV 2× higher than those acquired through SEA.
Customer size and type : distinguish micro-businesses, SMBs, agencies or enterprise accounts to adjust pricing and offerings. Example : discover that agencies have a lower ARPU but a longer customer lifetime than SMBs.
Customer lifecycle : categorize your customers according to their stage (new, onboarding, renewal). Example : analyze whether customers in onboarding convert faster when they activate a key feature in the first month.
Account owner : assign the Sales rep or CSM in charge, and compare portfolio performance. Example : measure which CSM has the best retention rate on their customer portfolio.
Reason for churn : understand why your customers leave (price, product, support…), especially when cross-referenced with cohorts. Example : identify that 40% of churns stem from poor product adoption, versus 20% related to price.
2. How to leverage segmentation in Fincome
Once your axes are defined, Fincome provides several tools:
Filters and breakdowns : quickly compare your segments.
Segmented forecast : project your revenues by segment and simulate scenarios.
Custom reports : align Finance, Marketing and Product around the same indicators.
3. Concrete business case examples
Waalaxy : segmentation by channel to optimize the CAC/LTV ratio.
Crisp : churn analysis by plan to reduce losses.
Infolegale : adoption of a common language thanks to segmented KPIs.
Nodalview : segment-based forecasts to plan growth.
4. Conclusion & next steps
Choosing your segmentation axes well allows you to:
Identify the most profitable segments.
Reduce churn by understanding the causes.
Guide your marketing and product efforts.
Anticipate the impact of actions on your growth.
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