In a fast-paced ecommerce environment, consumers are exposed to countless messages, promotions and sales offers on a regular basis. With so much noise, it’s become vital that you’re able to capture their attention in a way that is relevant to them and doesn’t doom your latest email offering to the rubbish folder.
That’s where customer segmentation comes in handy, enabling ecommerce brands to be more strategic with their promotions and drive more sales.
In this article, we’ll explore what customer segmentation is and what the benefits of embracing are.
What is customer segmentation?
The customer segmentation model is the grouping of customers based on shared attributes, helping ecommerce companies send targeted and timely promotions to their audience. These key customer segment attributes include age, location, gender, shopping habits, hobbies, preferred devices, and more.
Combined with an analytical, data-driven approach, customer segmentation provides the opportunity for creating a personalised experience for individual shoppers.
Segmentation in action:
A person who enjoys skiing clicks onto a homepage and is greeted by a message welcoming them back. They are led to a selection of skiing equipment they browsed while previously in the store and now have complementary product recommendations based on what is relevant to them.
At the checkout stage, the shopper is also offered a special discount on a pair of new ski goggles for being a loyal customer.
This is the power of the customer segmentation model at work, as the shopper’s behaviour has been analysed at all stages to provide them with the best possible shopping experience.
What are the benefits of customer segmentation?
Greater customer insight
One of the major benefits of customer segmentation is that it provides a deeper insight into how your audience is shopping, what trends they are interested in and what products are meeting their needs.
By feeding this data into your ecommerce strategy, you’ll be able to refine it all the time and never be out of step with the desires of your audience.
Higher conversion rates and greater revenue
Another advantage of segmenting customers is that you’ll be able to create highly specific marketing messages, increasing conversions and ultimately building more revenue in the long term.
As part of this, you’ll be able to increase the lifetime value of every customer and save money on acquiring new customers. This can be done by having an indication of a person’s Customer Lifetime Value (CLV) through the products they buy and devising the appropriate retention strategy.
Better customer satisfaction
Having a better indication of customer needs in a particular segment means you’ll be able to go the extra mile to make them feel special. For example, you could tailor specific product offerings to people of a certain demographic or offer discount codes for people who’re shopping through mobile devices.
As a result, you’ll be able to increase customer satisfaction and build long-term relationships.
Embrace customer segmentation with PureClarity
As a powerful eCommerce personalisation platform, PureClarity has exceptional customer segmentation capabilities. You can utilise it to create a wide range of segments and develop greater insight into the behaviour of your audience.