This article will explain how to set up Performance Segmentation. If you'd like to know more about this feature and why it is beneficial, please read this help center article first.
1. Segmentation settings.
2. Choosing the metrics and Thresholds.
3. Meanings of the labels.
1. Segmentation settings
When you create a CPC Google Ads, Amazon Ads or Bol ads dashboard, by default Segmentation is set up based on 'Clicks' and 'ROAS', and default thresholds are chosen. To change these Segmentation metrics and thresholds, you go to Dashboard > Insights.
This will take you to the overview of the Insights dashboards, where you can click on the name of the specific Insights dashboard that you want to view.
Located on the top right side of this Insights dashboard are the Segmentation Pie charts, which are built using default metrics and thresholds. Additionally, in the corner, there is an “Edit” option that will direct you to the Segmentation dashboard settings.
You can also access these settings by navigating to the Setup tab > Setup Insights > Settings, and then selecting the Segmentation tab.
Here, you will find the default metrics that are used: Clicks and ROAS, along with the default thresholds. Based on this setup, the feature automatically matches products with labels such as Stars, Underperformers, Potentials, and Invisible. These labels can be used later on in rules.
Let's dive into the example above to see how the labels are defined in this case.
IF Clicks is above threshold 30, AND ROAS is above threshold 400, the product is a Star
IF Clicks is above threshold 30, AND ROAS is below threshold 400, the product is an Under Performer
IF Clicks is below threshold 30, AND ROAS is above threshold 400, the product is a Potential
IF Clicks is below threshold 30, AND ROAS is below threshold 400, the product is an Invisible
2 Choosing the metrics and Thresholds
How to choose the metrics is up to you. By default, Clicks and ROAS are selected. You can choose other metric combinations through the drop-down list. The full list of combinations for Google Ads are:
| Metric 1 | Metric 2 |
| Clicks | ROAS |
| Conversions | ROAS |
| Impressions | ROAS |
| Cost | Conversion value |
| Cost | Conversions |
| Clicks | Conversion value |
| Clicks | Conversions |
After the metrics are chosen, you need to define the thresholds. When defining these thresholds, make sure that you use values there that make sense for thresholds looking at your data.
The common practice here to define the thresholds for the first time is to make them lower than the average values, of all products, of the chosen metrics from Google Ads, Amazon Ads or bol ads data.
3 Meanings of the labels
Based on the metrics and thresholds, your products will be divided into 4 segments with stars, potentials, underperformers, and invisible. The meaning of these segments are as follows:
1. Stars are your top-performing products.
2. Potentials are solid performers, that have more growth potential.
3. Under Performers are poor performing products that drain your money.
4. Invisible are hidden, it's not clear what their performance is.
Products that are not present in Google Ads, Amazon Ads or bol ads are excluded from the current Segmentation.