Shopify App Development

Customer Cohort Tagging - Automated Segmentation App

Developed an intelligent Shopify app that automatically tags customers based on purchase history for personalized marketing and targeted experiences.

Client

Confidential Client

Completed

Sep 2023

Category

Shopify App Development

Likes

187

Project Overview

Marketing teams love customer segmentation, but manually tagging customers in Shopify is tedious and error-prone. The client needed an automated way to categorize customers based on their purchase behavior so they could deliver personalized marketing campaigns, show targeted content on the website, and offer relevant product recommendations.

The Problem: With thousands of customers and hundreds of orders daily, keeping customer tags up-to-date manually was impossible. They wanted to segment customers into cohorts like "VIP Customer," "Repeat Buyer," "At Risk," "First-Time Buyer," and more - all automatically based on purchase patterns.

My Solution: I built a custom Shopify app using Laravel and React that automatically tags customers in real-time when they make purchases, and also runs nightly batch updates to adjust tags based on the latest data.

Real-Time Tagging with Webhooks: The app listens to Shopify's order webhooks. The moment an order is created, a webhook fires and hits my Laravel endpoint. I built a sophisticated tagging engine that:

  • Calculates the customer's total lifetime value
  • Counts their total orders
  • Determines time since last purchase
  • Analyzes purchase frequency
  • Checks average order value
  • Identifies favorite product categories

Based on these metrics, the app applies or removes customer tags instantly through Shopify's GraphQL API. For example, when someone makes their third purchase, they automatically get tagged as "Repeat Buyer." If their lifetime spend crosses $500, they become a "VIP Customer."

Intelligent Cohort Logic: I worked with the client to define their cohort rules. Here are some examples I implemented:

VIP Customer: Total lifetime value > $500 OR 5+ orders

Repeat Buyer: 2-4 orders in the last 6 months

At Risk: Previous repeat buyer but no purchase in 90+ days

High AOV: Average order value > $150

Category Enthusiast: 70%+ of purchases in one category

The app intelligently applies multiple tags, so a customer can be both "VIP Customer" and "Category: Outdoor Gear" simultaneously.

Nightly Batch Processing: While webhooks handle real-time tagging, I also built a scheduled task that runs every night at 2 AM. This job:

  • Reviews all customers in the database
  • Recalculates their metrics using fresh Shopify data
  • Updates tags that may have changed (like "At Risk" customers)
  • Removes outdated tags
  • Processes customers who may have been missed by webhooks

The batch job uses Shopify's GraphQL bulk operations to efficiently process thousands of customers without hitting rate limits. I implemented smart chunking and queueing to handle large datasets.

Admin Dashboard: I built a React-based dashboard where merchants can:

  • View all cohort rules and their criteria
  • See how many customers are in each cohort
  • Manually trigger tag updates for specific customers
  • Add, edit, or remove cohort rules without coding
  • View tagging history and audit logs
  • Generate reports on cohort distribution

Custom Rule Builder: The coolest feature is the rule builder I created. Merchants can create new cohorts through a visual interface without touching code. They select criteria like "order count," "total spent," "days since last order," etc., set thresholds, and the app immediately starts applying those rules. All rules are stored in MySQL and the tagging engine reads them dynamically.

Technical Architecture: The app is built on Laravel using the Osiset Shopify package for OAuth and API interactions. I used Laravel's queue system with Redis for handling webhook processing asynchronously - this ensures that even during high-traffic periods, no webhooks are missed or delayed.

For the scheduled jobs, I used Laravel's task scheduler with proper locking to prevent overlapping runs. The batch processor uses Laravel's chunking capabilities to handle large customer datasets memory-efficiently.

Shopify GraphQL Mastery: This project pushed me to master Shopify's GraphQL API. I used bulk operations for large queries, proper cursor-based pagination, and optimized queries to fetch only necessary fields. The app makes smart use of GraphQL mutations to update customer tags in batches, significantly reducing API calls.

Performance Optimization: With thousands of orders daily, performance was critical. I implemented:

  • Redis caching for frequently accessed cohort rules
  • Database indexing on key fields for fast lookups
  • Queue workers for background processing
  • Batch API calls to minimize Shopify rate limit impact
  • Efficient webhooks processing (sub-second response times)

Error Handling & Monitoring: I built comprehensive error handling with automatic retries for failed API calls. All errors are logged with full context, and critical failures trigger email notifications. The app includes a health check dashboard showing webhook processing status, queue length, and API rate limit usage.

Use Cases Enabled: The automatic tagging enabled the client to:

  • Send targeted email campaigns to specific cohorts
  • Show personalized product recommendations on-site using Liquid
  • Create exclusive discounts for VIP customers
  • Run win-back campaigns for at-risk customers
  • Track cohort performance in Shopify analytics
  • Build custom audiences for Facebook/Google ads

The Result: The client saw a 35% increase in email campaign click-through rates because messages were now highly targeted. Their retention improved as at-risk customers received timely win-back offers. The marketing team saved 10+ hours per week they previously spent manually tagging customers.

The app has processed over 50,000 orders, automatically tagged 15,000+ customers, and runs flawlessly 24/7. It's become an essential part of their marketing tech stack.

Shopify Expertise Applied

Shopify 2.0 Theme Architecture

JSON templates, section groups, and dynamic sections for maximum flexibility

Shopify API Integration

Admin GraphQL, Storefront API, and Ajax Cart for seamless data flow

Shopify Challenge

Building enterprise-level Shopify app functionality with complex business logic, ensuring compliance with Shopify's strict app review guidelines, and integrating deeply with Shopify APIs while maintaining sub-second response times.

Shopify Solution

Architected scalable Shopify app using Remix framework, integrated Admin GraphQL API with bulk operations, developed Checkout UI Extensions in React, and implemented Shopify Functions in Rust for high-performance custom logic at checkout.

Project Results

40%

Faster Load Time

25%

Higher Conversion

95

Performance Score

100%

Client Satisfaction

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