07 Dec How to use market segmentation to increase online sales?
Don’t treat all your potential customers the same way. Online shopping process is dependent on many factors and the behaviour of particular visitors can vary as well. That’s why, don’t forget to dedicate some time to customer segmentation while creating your marketing campaign. Make sure you offer them a unique value.
Think about criteria
Before you create segments, think thoroughly about criteria that are important in your shop. Think who are your customers? What activities are they doing being on your website, what are their shopping preferences?
An example of customer segments is given below:
- Customers that buy a lot of expensive goods
- Customers that buy a lot of inexpensive goods
- Customers that don’t buy a lot but goods that they purchase are expensive
- Customers that don’t buy a lot and goods that they purchase are inexpensive
Based on that division, you should be able to choose the most profitable customers for our web shop and create personalized mailings for them which will make your actions more effective.
Usually RFM (from recency, frequency, monetary) method is used to verify which customers are the most profitable ones. Three main factors are analyzed: when was the last time your customers have made shopping, with what frequency they purchase and what’s the rough value of this purchase. Apart from this division, you should also consider looking at such aspects as how many times is the cart abandoned, whether sales are drawing their attention and if they are emotionally attached to certain brands.
How to set personalized content
After creating segments, you should think about the strategy of communication towards your customers. Choose attractive content (for banners and articles), expose interesting elements (such as personalized sliders) and plan e-mails for specific moments (such as offering help when the cart is abandoned).
You can put in the same group all customers who are fulfilling certain conditions, for instance: looking for sales, making shopping that have lower value and they rather don’t buy complementary products. Subsequently, we direct towards them such actions as displaying boxes about sales and rebates of complementary goods. It doesn’t have to take place manually.
The configuration of actions can be made made using dedicated software, such as SalesMANAGO. Following customer behaviour on the website, it activates predefined actions. As PriceLab we also collaborate with SalesMANAGO so if you have any queries do not hestitate to contact us on: firstname.lastname@example.org).
Why it works
Dynamic adjustment of website content plus directing personalized email marketing to specific segments lets you achieve desired results, no matter whether it is website traffic increase, email CTR or OR raise, coming back to the cart, finishing shopping, or simply re-visiting your website. By being aware of who your customers are and offering them unique value, you create long term, strong relationship, which results in engangement, and finally- online purchase. And this is the most economic and effective way to increase your website income.