You need to know how to brand your product so that sales actually occur. Meanwhile, you also need to come up with ways to increase customer engagement in your store.
In our blog earlier, we talked about customer segmentation and also it’s benefits, today we will give you a peek into more drilled down insights about how segmentation can work for optimizing your eCommerce marketing. Your strategy should take into account all the segments of optimization to shoot up the revenue.
Optimize conversions for eCommerce from these segments:
Marketers must continually conduct marketing and customer research to evaluate and conclude WHAT they actually want WHEN they want it and WHERE. What is it in a product that interests a customer and what benefit it provides them.
For example, the food market can be divided into segments like – Nutritional, snacks, weight watchers, guilty eaters so on and so forth.
Every individual will pick what they need and this way you will be able to get one more step closer to knowing them better. The point here is to identify and segment accordingly.
To sum this one up, we already know that the shotgun approach for marketing is long dead since it is frustrating and the easiest way to lose on your customers. The need to acknowledge unique individuality and target has become crucial.
User Activity and Status
Keeping track of the pages your users visit and the number of times they do it will give you an idea of what they prefer to browse. The clicks will tell you what interests them, for instance, the categories that they usually maneuver, whether they add to cart or add to the wish list or do they directly proceed to purchase. You can also keep track of more granular databases like the products that they click on and if they choose to see the recommended products. Where do the users usually drop off? Does price have a role to play in this, if yes how would they respond to a discount coupon?
The user activity monitoring helps you in studying consumer behavior more closely. All this data helps you in retargeting users effectively with behavioral segmentation. You can also make use of behavioral segmentation to target them according to the cards they use during a transaction and provide them with offers accordingly.
This category can be a strong predictive indicator of loyalty and, therefore, lifetime value.
Let’s assume your company has localized the app for X country, but after analyzing you realize many users are using the app in the middle of the night. Instead of sending push notifications in the early morning, when they are catching up on lost sleep from the night before, you could send push notifications shortly before midnight.
Behavioral segmentation can also be done based on heavy user, light user and zombie user. Heavy users are usually loyal users who depend majorly on you when it comes to an online purchase. A light user is someone who is an event-based purchaser; Zombie users are those who have created an account but have transacted once or twice only, or not gone ahead with a purchase. All these users should be targeted differently with different messages.
The shopping behavior of a user might depend on external factors as well, such as the changes in the weather and the money they have in their wallet. At the beginning of the month when the salaries are credited to the bank accounts, there are higher chances of quicker conversions. Users are usually ready to splurge during festive seasons, weddings, birthdays, especially if they have to gift something. Check if there is a pattern to it.
Another behavioral segmentation can be based on the time of purchase. Some users are willing to make a purchase right away as soon as a new product is added. For example, when a new model of the iPhone is launched, some users buy it the very same day. While the others might take time, analyze, read the comments, check the ratings and then make a purchase. This assures you that even if you don’t have a great sale the first day, few users will take their time to convert.
Dynamic pricing should primarily be adopted to give loyal customers better deals. Behavioral segmentation for them not only increases trust but also increases loyal customers. It’s important to segment customers on the basis of loyalty because these people generate the bulk of your revenue, cost less to retain than acquiring new customers, and have the highest lifetime value. Therefore, you must cash-out their value and find more customers like them.
Price By Device
Since business is becoming less of a face-to-face experience, marketing has become more reliant on clues to piece together the customer profile puzzle. Using device data and understanding how these devices are purchased by different audiences.
For example, Apple products and their hefty price tags, are typically purchased by a more affluent customer. PC computers and Android devices are less expensive and therefore more widely available to a less affluent customer.
Understanding price sensitivity by the device has allowed many companies to show different price points to different customers based on their device and its usage
Confused on how to decide the price for a device? We will make it less complex for you:
- Evaluate the pricing environment
- Define pricing objectives
- Choose pricing strategy
- Assemble pricing mix
This allows price signals to be directly sent to decision making devices.
Why these are not working for you?
Biased Decision-Making Process
Correlation and cause are yet another fundamental marketers fall prey to; connecting dots that are not related to each other! For example, it could be a mere coincidence that the increase in the sale of vegan leather shoes is due to the ‘save water’ campaigns going on. This leads to incorrect behavioral segmentation and your campaigns fail to take off. First and foremost you need to realize you are biased and work towards being open to other possibilities as well.
Targeting Broad Behavioral Segments
The point of segmenting is to look deep into a user’s behavior to target them smartly. What is the point of having broad behavioral segmentation in which almost everyone fits?
For example, during festivals, a hike is usually observed in the number of purchases a user makes, and the amount of money they spend. This might not hold true during the usual days. The time frame needs to be taken into account, to zero down to the right sizeable segment.
Holding on to just one main characteristic can lead to lost opportunities. Behavioral segmentation based on what users liked during the sale can make you lose out on other things that they like as well. Broadening your segment a bit more can give you better results and give the users a better experience.
Thanks to the internet, brands today have access to unlimited shelf space and media outlets. Consumers are less tolerant of spam and unsubscribe the first chance they get. Consumers can buy anything, at any time. In this era, relevancy takes a higher place, ruling the entire user experience, making it almost mandatory for brands to start building super-serve niche audiences.
The need to acknowledge unique individuality and target the right users with the right message has become crucial. And yet businesses do not use behavioral segmentation.
Marketing stacks are becoming sophisticated day by day and developing insights on user behavior is easier than ever before. But also complex if not utilized and taken along with it an opportunity to create a personalized experience.
Every user has a pattern that reflects in their purchase decisions. Understanding these patterns and segmenting users according to their behavior will help in targeting them better the next time.