Configuring Lifecycle Segments

Lifecycle segments help classify your customers based on recency and purchasing behavior. Biznalyst auto-generates these segments as soon as your data is connected, allowing all analytical tools to evaluate performance consistently and accurately.

1. How Lifecycle Segments Work

Lifecycle segments identify where each customer stands in their buying journey on a given snapshot date. All Biznalyst tools—Revenue Measurement, Churn Measurement, LTV Analysis, Segmentation Analysis, and others—use these definitions when grouping customers.

The segmentation framework includes four customer states:

• Recent Customers – First purchase is recent (within the Active Period) and only one purchase so far.

• Active Customers – Customers with at least two purchases, including one within the Active Period.

• Dormant Customers – Haven’t purchased recently (outside the Active Period) but are not yet considered churned.

• Churned Customers – Last purchase was beyond the Churn Period threshold.

These segments form the backbone for all recency- and retention-based analysis.

2. Automatic Configuration

After your purchase data is uploaded, Biznalyst automatically:

1. Analyzes inter-purchase gaps in your dataset.

2. Identifies signals for natural lifecycle breakpoints.

3. Recommends Active Period Days and Churn Period Days based on these patterns.

4. Activates all lifecycle segments using these thresholds.

The result is personalized thresholds tailored to your customers’ purchasing behavior.

Each recommended value is accompanied by a transparent rationale—so you can see exactly how Biznalyst arrived at those numbers.

3. Understanding Threshold Recommendations

Biznalyst evaluates multiple statistical indicators in your purchase frequency data to determine optimal thresholds:

• Distribution percentiles

• Elbow and taper points in inter-purchase interval curves

• Plateau behavior of repeat purchase likelihood

• Guardrails to ensure stability and prevent under- or over-classification

These signals help estimate when a customer is likely still “active,” when they drift into “dormant,” and when they should be treated as “churned.”

Users can view this rationale directly in the UI under Why these recommendations?

4. Customizing Your Segment Definitions

Every business has unique buying cycles. If the recommended thresholds do not align with your operating definitions, you can adjust them.

You may modify:

• Active Period Days – How far back to look for recent purchase activity.

• Churn Period Days – How far back to determine that a customer has lapsed.

Once updated, all tools immediately use your custom definitions for future analyses.

The segment logic will always remain consistent and reproducible across the platform because every tool evaluates segments using the same snapshot-date definitions.

5. Snapshot-Based Evaluation

Lifecycle segments are computed as of a specific date, referred to as the snapshot date.

• Each tool determines the appropriate snapshot date based on the analysis period.

• Customers are classified according to your configured definitions at that point in time.

• This ensures accurate measurement of active users, churnable bases, cohort evolution, LTV stages, and segment transitions.

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6. When to Review or Update Segments

You might choose to revisit your segment thresholds when:

• Customer buying patterns change significantly.

• You shift your business model (subscription, wholesale, seasonal peaks).

• You want tighter or broader definitions for marketing or retention strategies.

Biznalyst keeps your previous recommendations visible, so you can revert or recalibrate with confidence.