Virtually, all the accumulated data concerning sales are useless, nevertheless they are so tempting to use them in reports. Number of visits, time spent on the website, the total income, etc. – that are numbers that look good, but information that truly can be used into your profits come from more detailed data, which you can get through segmenting your client base.
Segmentation is the key to your company success
Segmentation allows you to create groups of clients who share a common trait. This allows you to better understand their needs and select appropriate marketing activities. Do not deceive yourself – well prepared segmentation is difficult. It should go beyond the templates that fits all and use them individual criteria. You need to devote the right amount of time, but the game is worth the candle. See how others have done it.
SwayChic online store offering women’s clothing set himself a challenge – to increase revenues from existing clients with optimized email campaigns. After preliminary tests, the company has divided its clients into segments based on behavioral data collected.
Among many indicators, the company chose two, they believe were essential in carrying out a successful campaign. The first was how the time the message was received influences client behavior. They created 3 groups to which messages were sent at 5.00, 10.00 and 17.00. This made it possible to discover that in their case campaigns sent in the evenings are usually mostly open.
The second aspect was the shopping story. Here the sample segments consisted of people who in the past have made one purchase, three shopping or for a long time have not bought anything. This allows the company to differentiate a few non-active clients and address them a suitable campaigns to bring-back their re-engagement.
The effect? The company carried out 12 optimized email campaigns to the appropriate client segments, in which:
- OR Increased by 40%;
- CTR doubled;
- profit from each campaign has tripled.
Doggyloot – segmentation has no limits
Doggyloot is an online shop for dog owners. However, the campaigns instead of to the people, are addressed to … pets, sending them even birthday greetings. Personalization is based on dogs’ data, not people. Here registration is useful – you need to ask one simple question – how big is your dog? This short answer allows you to prepare more accurate email campaigns. It is known that a Rottwailer needs other products than chiuhahas. The offer of 10-kilos bone will not work for a 5-pound dog. This simple procedure allowed the increase in CTR group of owners of big dogs by 410%, compared to the CTR campaign dedicated to all dogs. Even better result brought the campaign concerning dogs’ birthday greetings – here CTR increased by 750% and daily sales of products to selected breed jumped by 16%.
Johnny Cupcakes – quality counts
Johnny Cupcakes – confectioneries chain and the owner of an online store with T-shirts and accessories, had over 80,000 of email addresses of clients. While email campaign, each one always got the same message. It was not very efficient operation. Fortunately, business owners also came to that conclusion and gradually began to gather information from the social profiles of their clients. This allowed them to create separate campaigns for men and women, who were interested in baseball.
This simple segmentation cause that:
- CTR increased by 42%;
- conversion increased by 123%;
- income from the campaign increased by 141%.
Eventful – go up to meet the needs
Eventful is a service that allows clients to search for and keep track of upcoming events, such as festivals, concerts, film shows. Here segmentation was based on personalizing emails based on the clients’ interested in artists work. They used information collected through cookies. From now on, any sent mail referred to tickets purchase thematically was related to those whom he was interested in before. In addition, they created a system of event notifications adjusted to a visitor’s interests. In this case the content personalization, made:
- reactivation of unused accounts has increased by 400%;
- OR increased by 26%;
- CTR increased by 97%.
Intermix – remember about different shopping habits
Intermix – the fashion store for women divided their clients into 3 segments. They analyzed their past buying behavior, the average value of purchases, email opening rate and clicks on links within them. In this way they created segments:
- VIP – clients spending the most, following the latest trends in fashion;
- Outlet customers – who are motivated to purchase by special sale;
- Customers of certain brands – which are characterized by loyalty to specific brands, but secondly also pay attention to the prices.
Using these three segments store can send relevant messages with offers. So the VIP group received invitations to exclusive events and meetings with designers, while the other group received 30% or 15% discount. These actions made the store annual revenue increased by 15%.
See yourself that it works
Analyzing the above examples we can see that properly selected segmentation gives you a great chance to increase the profits of the industry. But do not forget that every business is unique and a strategy also has to be like that. It is therefore necessary to prepare segmentation, which will suit to the unique needs of the industry.
It is important to ask a lot of questions and work in the team. This will help you to choose a small group of data which you should focus on. Remember that the number of segmentation criteria, to be successfully used, should have up to 5-7 conditions. Hence, it is important to leave only the most important indicators that will draw the most important conclusions. In the process of the selection criteria, and the analysis of a very large databases invaluable will be BI systems that will be equipped with modules for automatic segmentation of clients.