9 types of segmentation you should be using to drive conversions

9 types of segmentation you should be using to drive conversions Headshot

By Tom Ricards, Account Director

The beauty of digital commerce is that retailers have access to endless customer data to inform marketing decisions.

But with all this data available, it can be hard for marketers to tune out the noise and zone in on the shoppers most likely to make a purchase.

What is segmentation?

Segmentation allows marketers to take control of customer data to drive revenue and improve customer experience. Data from across channels is coordinated to segment customers according to their behavior. Marketers can use these segments to deliver highly relevant content to shoppers at the moment they are most engaged.

Once segments are set up, you can use them to boost conversions from bulk and triggered emails, across your website, and in social media advertising.

This is a win-win tactic: shoppers benefit from the most useful information, while marketers generate increased revenue by targeting customers with a propensity to convert.

Here, we’ll look at nine segments you should be using - and the types of content most likely to get results.

1. Highly engaged visitors who haven’t made a purchase

Turn these browsers into buyers by showing them personalized coupons based on the products and categories they are most interested in.

2. Loyal customers who haven’t bought anything for a while

Win back lapsed shoppers by reminding them what they like most about your brand, based on their past behavior. Let them know they are a valued customer by telling them about new products they might be interested in.

3. Customers who are close to converting

For frequent visitors who are probably going to make a purchase, keep them updated with the latest product recommendations, personalized based on their preferences. Don’t be tempted to reach out with special offers, as this will diminish value of an order that was likely to take place anyway.

Retarget customers who are close to converting with relevant new product recommendations

4. High spenders...

You can use browsing history and past orders to identify customers who are likely to spend more than average. Nudge these customers towards a conversion with recommendations for your higher margin products from their favorite category.

5. ...and bargain hunters

Historic purchase data can also be used to identify customers who may be tempted by lower priced items. Encourage engagement with sale items or products that have dropped in price.

6. Customers who need to refill their stock

Target potential repeat purchasers with replenishment emails to remind them they will soon need to buy a refill. This works especially well for cosmetics, health supplements and consumables. Customers will be more likely to make a repeat purchase, and will also appreciate the timely reminder.

7. Shoppers who browsed a product that has dropped in price

Send price drop alerts to inform shoppers when their favorite product has been discounted. This provides extra encouragement for price-conscious shoppers and increases loyalty to your brand.

Send price drop alerts to shoppers who browsed a product that has now been discounted

8. Customers who browsed an out of stock product

Customers' browse data can be used to trigger an automatic email once the browsed product has been restocked. Shoppers will be satisfied that they didn’t miss out on their desired product, and won’t be tempted to turn to a competitor to meet their needs.

Back in stock automated email marketing example

9. Customers who will help you meet your goals

You can also use segmentation to meet your business objectives such as selling excess stock. Target content to shoppers who have shown a high level of interest in the specific product or category.

Get the most out of segmentation

Be smart about retargeting

When targeting content based on segments, rules should be set up to ensure that customers are not shown content promoting something they have already bought. It’s therefore vital that data from all your customer touchpoints is collected and coordinated in real time, so a shopper can be removed from a segment as soon as they have converted.

Deliver highly relevant content

Consumers have lots of choice, and are skilled at filtering out irrelevant information. Make the most of behavioral data to ensure that shoppers see content based on their current interests and preferences. Engage customers with images and product details consistent with what they have just browsed on the website.

Keep it simple

Accessing behavioral and transactional data for marketing campaigns can be slower than you would like if your technical team has to pull back-end data from your eCommerce platform.

To make segmentation easier, you can adopt a real-time personalization platform like Fresh Relevance. Our Segment Builder allows marketers to quickly access and implement real-time customer data without relying on other teams. You can also combine segments with marketing rules to engage customers with specific content based on your business objectives.

Download the guide to find out how segmentation fits into a personalized email and web strategy:

download ebook

9 types of segmentation you should be using to drive conversions Headshot

By Tom Ricards

Account Director

As Account Director at Fresh Relevance, Tom works with renowned brands in the eCommerce and travel space to ensure success with their content personalization programmes in email and online.