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Customer Segmentation: Who? When? What?

Customer segmentation is a vital tool for your e-commerce business to be more successful. Customer-centricity is very important but an important step beforehand is to segment your customer database into different groups to address their essential needs regarding your products. Care to learn more? Jump in!

In e-commerce, one-size does not fit all. A segmented approach is needed to improve your e-commerce business. Your customers and potential customers or visitors of your e-commerce website come from different cities, browsers, purchasing preferences and habits. You probably are using analytics tools to observe the performance of your e-commerce website and meanwhile, you are also piling up valuable customer data that can help you with segmentation. Using that data will increase your conversion rate in a minute. You need to start with visitor segmentation by splitting your traffic data according to their browsers, locations or habits. This way you can customize your pages to maximize your conversions.

Your customers’ segments will provide you with different groups to experiment with. You can do A/B testing with them and specialize according to their needs more efficiently. Remember to segment them in a way that will benefit your e-commerce business. This will help increase your conversion rates and your customers will have a more engaging, personalized experience. A few customer segments that you can use and will benefit your e-commerce website are explained right below.

Who is your customer?

You potential customers can be broken down according to their visitor status on your website. Are they logged in while they are using your website or not? Are they first-timers on your website or repetitive shoppers? Deciding which crowd is your loyal customers will do you good. You don’t want to treat them the same as every other customer. They are your assets and you can learn from them. Thinking about your loyal customers will gain you some insight into how and why have they become loyal in the 1st place. You might be able to expose other customers to their experiences to create more loyal customers as well.

When was the last time you bought something?

You might want to break down your customer data according to their activities in the last month. Have they shopped in the last 30 days or not? If your customer has not been to your website for a while it might be time to send some sort of a discount coupon or a special campaign with free delivery options. You have to lure them back to your website before losing them to your competitors. If they have bought some product only 3 months ago it is reasonable to think they are more willing to shop with a little incentive. This approach helps your business to not lose customers because of neglecting them. Don’t be forgotten. You can create a data break down according to your customers’ last shopping date. If they shopped within last month put them on the recent shoppers’ segment.

The Big Guns

Your customers might be shopping frequently from your website and be loyal. But, another thing to consider is which customers are the big spenders. Customers with high cart values deserve more of your attention. You need to make their experiences better in order to keep them. You know they are worth your time. To create your high cart value segment you will need to set a threshold for a purchase. If any of your customers spend over that threshold they will be identified as the big spenders.

Are they from planet earth?

Another aspect of customer segmentation is the location. Your customers can be from different cities, countries or neighborhoods if you are a local business. It is beneficial to segment them accordingly so you can specialize according to the local needs. If the customers from City A are mostly shopping for kitchenware make sure to send them a discount one in a while. They will appreciate it the most. If they are from City B where it rains in the Spring too much, you might want to put your umbrellas, raincoats in the main page or send them e-mails specifically reminding them of the upcoming seasonal change and how you can help out.

Source and Device Type

Knowing how your customers are reaching your website will enhance your knowledge about them and how to make other potential customers reach you. When we say source, it means browser type, search engine, affiliate or an online advertisement. You will be able to differentiate which source is your strong suit and follow that to gain more customers. Another point is which device they are using to reach your website. If most of your customers are using their mobile devices to reach you it might be time to create an app to satisfy their mobile needs. The devices may also have smaller or larger screens which can affect the display of the website positively or negatively. Think about that.

Personalized Data

Your customer data will be presented with more details if you are using software such as Google Analytics. You will be able to see their age, gender, hobbies and maybe even income. It can be useful if you know that people who are over 30 are on your website. You might want to avoid teenager language and offer them sensible prices with detailed product descriptions. If your website customers are mostly mothers or potential mothers make sure that you are providing campaigns accordingly. If your customers are mostly young men make sure to appeal to their needs.

Customer segmentation is one of the most important aspects of the e-commerce business. Your customer service will be improved, conversions will increase and your customers will think of you dearly. Who can say no to that? Start dabbling in the customer data. You will come up with some exciting insights for sure.

Customer segmentation helps you to specialize according to your customers’ needs and make them happier.


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