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<p><strong>Segmentation is the key to your company’s success&nbsp;</strong>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. Be warned – well-prepared segmentation is difficult. It should go beyond the templates that fit everyone and create groups based on individual criteria. If you put in the right about time and effort, you can reap huge rewards. Let’s see how others have done it.</p><h3>SwayChic</h3><p>SwayChic, an online store offering women’s clothing, challenged itself to increase revenues from existing clients with optimized email campaigns. After preliminary tests, the company divided its clients into segments based on collected behavioral data.</p><p>Among many indicators, the company chose two that they believed were essential to carrying out a successful campaign. The first was how the time the message was received influenced client behavior. They created three groups to which messages were sent at 5 AM, 10 AM and 5 PM. This made it possible to discover that in their case campaigns sent in the evenings are usually the most opened.</p><p>The second aspect was the shopping story. Here the sample segments consisted of people who in the past have made one purchase, three purchases or have not bought anything for a long time. This allows the company to differentiate a few non-active clients and address them with suitable campaigns to re-engage them.</p><p>The effect? The company carried out 12 optimized email campaigns to the appropriate client segments with these results:</p><ul><li>OR Increased by 40%;</li><li>CTR doubled;</li><li>profit from each campaign tripled.</li></ul><h3>Doggyloot – segmentation has no limits</h3><p>Doggyloot is an online shop for dog owners. Instead of sending campaigns to human customers, they are addressed to … pets, even sending them birthday greetings. Personalization is based on the dogs’ data, not their owners’. 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.</p><p>It is known that a Rottweiller needs different products than poodles. The offer of a huge bone will not work for a 5-pound dog. This simple procedure allowed an increase in the CTR in the group of owners of big dogs by 410%, compared to the CTR in campaigns dedicated to all dogs. An even better result was achieved by the campaign concerning dogs’ birthday greetings – here CTR increased by 750% and daily sales of products to selected breeds jumped by 16%.</p><h3>Johnny Cupcakes – quality counts</h3><p>Johnny Cupcakes – a confectioneries chain and the owner of an online store with T-shirts and accessories, had over 80,000 client email addresses. In their campaigns, each subscriber always got the same message and so it was not a very efficient operation. The owners realized that they needed to make tailored campaigns and so they began to collect information from social media profiles and used to it create customer segments based on common characteristics.</p><p>This simple step had these results:</p><ul><li>CTR increased by 42%;</li><li>conversion increased by 123%;</li><li>income from the campaign increased by 141%.</li></ul><h3>Eventful</h3><p>Eventful is a service that allows clients to search for and keep track of upcoming events, such as festivals, concerts, films, etc. Here segmentation was based on personalizing emails based on customer interest in a particular artist. They used information collected through cookies. This data was used to create a recommendations system based on demonstrated interests and preferences. In addition, they created a system of event notifications adjusted to visitor interests. These changes had the following results:</p><ul><li>reactivation of unused accounts increased by 400%;</li><li>OR increased by 26%;</li><li>CTR increased by 97%.</li></ul><h3>Intermix</h3><p>Intermix – This fashion store for women divided their clients into three 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:</p><ul><li>VIP – clients spending the most, following the latest trends in fashion;</li><li>Outlet customers – who are motivated to purchase by special sales;</li><li>Customers of certain brands – which are characterized by loyalty to specific brands, but also pay attention to prices.</li></ul><p>Using these three segments, they could send relevant messages with the right offers to the right customers. So the VIP group received invitations to exclusive events and meetings with designers, while the other group received a 30% or 15% discount. These actions&nbsp;<a href="https://synerise.com/blog/10-solutions-for-online-store-that-increase-sales">increased the store’s annual revenue&nbsp;</a>by 15%.</p><h3>See the results of segmentation for yourself</h3><p>Analyzing these examples, we can see that proper segmentation is the path of the increased sales. But do not forget that every business is unique and demands its own strategy. This means creating segments that are unique to the needs of a particular industry.</p><p>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 should have up to 5-7 conditions to be successful. Hence, it is important to include only the most important indicators that will draw the most important conclusions. In the process of the selection criteria, and the analysis of very large databases, BI systems that will be equipped with modules for automatic segmentation of clients are invaluable.</p>

<p><strong>Segmentation is the key to your company’s success&nbsp;</strong>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. Be warned – well-prepared segmentation is difficult. It should go beyond the templates that fit everyone and create groups based on individual criteria. If you put in the right about time and effort, you can reap huge rewards. Let’s see how others have done it.</p><h3>SwayChic</h3><p>SwayChic, an online store offering women’s clothing, challenged itself to increase revenues from existing clients with optimized email campaigns. After preliminary tests, the company divided its clients into segments based on collected behavioral data.</p><p>Among many indicators, the company chose two that they believed were essential to carrying out a successful campaign. The first was how the time the message was received influenced client behavior. They created three groups to which messages were sent at 5 AM, 10 AM and 5 PM. This made it possible to discover that in their case campaigns sent in the evenings are usually the most opened.</p><p>The second aspect was the shopping story. Here the sample segments consisted of people who in the past have made one purchase, three purchases or have not bought anything for a long time. This allows the company to differentiate a few non-active clients and address them with suitable campaigns to re-engage them.</p><p>The effect? The company carried out 12 optimized email campaigns to the appropriate client segments with these results:</p><ul><li>OR Increased by 40%;</li><li>CTR doubled;</li><li>profit from each campaign tripled.</li></ul><h3>Doggyloot – segmentation has no limits</h3><p>Doggyloot is an online shop for dog owners. Instead of sending campaigns to human customers, they are addressed to … pets, even sending them birthday greetings. Personalization is based on the dogs’ data, not their owners’. 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.</p><p>It is known that a Rottweiller needs different products than poodles. The offer of a huge bone will not work for a 5-pound dog. This simple procedure allowed an increase in the CTR in the group of owners of big dogs by 410%, compared to the CTR in campaigns dedicated to all dogs. An even better result was achieved by the campaign concerning dogs’ birthday greetings – here CTR increased by 750% and daily sales of products to selected breeds jumped by 16%.</p><h3>Johnny Cupcakes – quality counts</h3><p>Johnny Cupcakes – a confectioneries chain and the owner of an online store with T-shirts and accessories, had over 80,000 client email addresses. In their campaigns, each subscriber always got the same message and so it was not a very efficient operation. The owners realized that they needed to make tailored campaigns and so they began to collect information from social media profiles and used to it create customer segments based on common characteristics.</p><p>This simple step had these results:</p><ul><li>CTR increased by 42%;</li><li>conversion increased by 123%;</li><li>income from the campaign increased by 141%.</li></ul><h3>Eventful</h3><p>Eventful is a service that allows clients to search for and keep track of upcoming events, such as festivals, concerts, films, etc. Here segmentation was based on personalizing emails based on customer interest in a particular artist. They used information collected through cookies. This data was used to create a recommendations system based on demonstrated interests and preferences. In addition, they created a system of event notifications adjusted to visitor interests. These changes had the following results:</p><ul><li>reactivation of unused accounts increased by 400%;</li><li>OR increased by 26%;</li><li>CTR increased by 97%.</li></ul><h3>Intermix</h3><p>Intermix – This fashion store for women divided their clients into three 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:</p><ul><li>VIP – clients spending the most, following the latest trends in fashion;</li><li>Outlet customers – who are motivated to purchase by special sales;</li><li>Customers of certain brands – which are characterized by loyalty to specific brands, but also pay attention to prices.</li></ul><p>Using these three segments, they could send relevant messages with the right offers to the right customers. So the VIP group received invitations to exclusive events and meetings with designers, while the other group received a 30% or 15% discount. These actions&nbsp;<a href="https://synerise.com/10-solutions-for-your-online-store-that-will-increase-sales/">increased the store’s annual revenue&nbsp;</a>by 15%.</p><figure class="image"><img src="/uploads/eb1d4a9a8ed04155ad620d8e6877dab6.jpg"></figure><h3>See the results of segmentation for yourself</h3><p>Analyzing these examples, we can see that proper segmentation is the path of the increased sales. But do not forget that every business is unique and demands its own strategy. This means creating segments that are unique to the needs of a particular industry.</p><p>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 should have up to 5-7 conditions to be successful. Hence, it is important to include only the most important indicators that will draw the most important conclusions. In the process of the selection criteria, and the analysis of very large databases, BI systems that will be equipped with modules for automatic segmentation of clients are invaluable.</p><figure class="image"><img src="/uploads/6f3f299667f74039809bb1e32534dd52.png"></figure>

Segmentation presented as a visual pie chart with accumulated data

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Segmentation is the key to success. It allows you to better understand customers needs and select appropriate marketing activities. See how others have done it effectively.

How Segmentation Can Boost Your Profits | Blog | Synerise

How Segmentation Can Boost Your Profits

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<p>Synerise cooperates with Orange Polska, the market leader in mobile telecommunications, internet and data transmission, by supporting their digital transformation and providing customers with the best experience of using modern technologies. Synerise solutions help Orange acquire and retain satisfied customers, driving an increase in the share of digital channels in overall sales.</p>

<p>Building better customer experience and growth in e-commerce</p>

Case study

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<p>A high degree of flexibility, the possibility of implementing multiple omnichannel scenarios and fast time-to-market give the chain an advantage in digital channels.</p>

<p>increase in the average basket value when containing recommended products</p>

<p><strong>LEROY MERLIN implements digital innovation with Synerise</strong></p>

Retail case study

<h3><strong>Before you start</strong>&nbsp;</h3><figure class="image"><img src="/uploads/image_7e2283c8ea.png" alt="Blue squares, charts and client icon "></figure><p>The process should start even before the actual integration goes ahead. Take a closer look at your website and the <a href="https://synerise.com/papers/multi-modal-embedding-recommender">AI solution</a> you will be using, in order to know how to better plan the implementation.&nbsp;</p><h4><strong>1.&nbsp;&nbsp; Analyze products on the website&nbsp;</strong></h4><p>It’s a good practice to analyze product frames on the website. This will help you speed up the whole integration by preparing an appropriate product catalog (the source of e-commerce product stock). Pay attention to information about products that you already have on the website — maybe apart from the title and price there are some special labels like “eco-friendly”; stars with product ratings; special prices for club members, etc. After you define this, you will know what information should be included in the product catalog and so the frame with recommendations will visually fit the website layout.&nbsp;</p><h4><strong>2. &nbsp;Verify the website structure&nbsp;&nbsp;</strong></h4><p>You can also examine the website in terms of places to put recommendations. Areas like the home, product or category pages are obvious but perhaps there is a better space to add recommendations such as in the drop-down menu or on a landing page which describes one of the brands you sell? <strong>Each website should be analyzed individually to find the places where recommendations can be added to enhance the customer experience.</strong> It will also help you to plan the implementation because you will know how many campaigns will need to be prepared.</p><h4><strong>3. Obtain basic knowledge about the </strong><a href="https://help.synerise.com/ai-7-days/"><strong>AI solution&nbsp;</strong></a></h4><p>You will learn about any platform once you start using it, but it’s important to know earlier about the range of services it offers. You need to go deeper by getting to know the requirements of each AI product offered. That will indicate what you will need to prepare on your side, making it easier to better plan the integration. As a result, you will get an idea of what you should focus on to implement campaigns that you are planning, and what should be provided in the short and long term.&nbsp;</p><h3><strong>Integration</strong></h3><figure class="image"><img src="/uploads/image_9063727d97.png" alt="Product attributes like name, price, color, link, image, category, season"></figure><p>Since you already have a concept in mind of what you want to achieve, all you have to do is take action. Start by carefully planning the steps of the integration and providing events and a product catalog.&nbsp;&nbsp;</p><h4><strong>4. Add custom attributes in the product catalog&nbsp;</strong></h4><p>The <a href="https://help.synerise.com/developers/product-feed/">product catalog</a> is the source of information about your products, which should contain basic data like their titles, images, links and prices. But it’s recommended practice to add more attributes, which will provide more details about each product. Thanks to more detail, you will be able to filter your recommendations in a more advanced way. Those attributes can be universal, like ratings, or strictly connected to a specific industry, like seasons for fashion, or energy consumption in the home appliance industry.&nbsp;&nbsp;</p><h4><strong>5. Include unavailable products in the product catalog&nbsp;</strong></h4><p>If your website includes products which are currently unavailable or which can be bought offline only, add them to the product catalog anyway but with the information that they are out of stock. Then such products will not appear in the recommendation’s frame, but you will be able to show recommendations on a product page. In other words, you can recommend similar products which are available, and which may interest your customers and convince them to make a transaction.&nbsp;</p><h4><strong>6. Provide events as soon as possible&nbsp;</strong></h4><p>AI models need data to learn, so don’t wait with <a href="https://help.synerise.com/developers/web/event-tracking/">event integration</a>. Even if you have to enhance the product catalog (see previous point), provide events for better recommendations. The more of them you add, the more accurate the models will be. Another thing which may be helpful is the import of historical transactional events - it will also allow you to get more appropriate results faster.</p><h3><strong>Campaign implementation&nbsp;</strong></h3><figure class="image"><img src="/uploads/image_7c292b6ce4.png" alt="Zero page results showing recommendation on pages where customers don’t view products"></figure><p>Preparation is a crucial part of integration but now it’s time to finally put into practice the data you’ve provided and create campaigns. Let's look at how to do just that.&nbsp;</p><h4><strong>7. Give recommendations at every step of the customer journey&nbsp;</strong></h4><p>To enhance the customer experience, <a href="https://synerise.com/blog/perfect-customer-journey-based-on-ai-recommendations">add recommendations at every step of the customer journey</a>.&nbsp;</p><ul><li>Put <a href="https://synerise.com/blog/bestsellers-vs-personalized-recommendations">personalized recommendations</a> on the home page where customers will be displayed products best suited for them, instead of the same set of products for everybody.</li><li>When customers go to the categories page, show them personalized recommendations tailored to the current category, placed above or below the list of products.</li><li>On the product page, add similar or visually similar recommendations near the main information about the product.</li><li>When a customer adds a product to the cart, add cross-sell recommendations in the pre-cart pop-up to increase the cart value.</li><li>Finally, when customers get to the shopping cart page, add cart recommendations to interest them in additional products.</li></ul><h4><strong>8. Enrich pages where customers don’t view products&nbsp;</strong>&nbsp;</h4><p>You can also help customers by implementing personalized recommendations on pages where they usually do not see any products, like 404 pages, zero search results, empty carts, pages with campaign rules. This gives you more opportunity to attract customer attention with offers specifically tailored to them.</p><h4><strong>9. Go beyond the website&nbsp;</strong></h4><p>So far, we have covered recommendations for most places on the website, but you should go beyond this and use other touchpoints to promote recommended products. Use emails to send personalized offers when the user ends the session, offer complementary products after they buy something, or show similar products based on the last seen item. Send web push messages that link to a landing page with products chosen for the customer. Transfer personalized products to a remarketing platform so that your customers get better suited advertisements.</p><h3><strong>Effectiveness</strong>&nbsp;</h3><figure class="image"><img src="/uploads/image_7efd25046a.png" alt="Violet KPI icon from squares and triangles"></figure><p>Once your recommendation campaigns are up and running, you have to know how they perform. Being able to measure progress towards your goals is key. You should know how and what you want to measure, even in the implementation phase, to be sure you have everything needed beforehand.&nbsp;&nbsp;</p><h4><strong>10. Set your KPI&nbsp;&nbsp;</strong></h4><p>Decide what you want to check. Revenue? Conversion rate? Average order value? CTR? Be specific in your choice of indicators, limit the number of <a href="https://synerise.com/blog/how-to-choose-and-track-right-KPIs-in-marketing">KPIs</a> you choose to focus on and make sure that you collect all the data needed to count them. Set your goal and regularly <a href="https://help.synerise.com/docs/analytics/">check the results</a> so that you will be able to detect any anomaly.&nbsp;</p><h4><strong>11. Use a control group</strong></h4><p>How do you know if your KPIs are good? You should be able to compare them, but compare to what? To a different time period? A lot of conditions can influence results. To isolate one factor (recommendations) and measure it, you should create a <a href="https://synerise.com/blog/control-group-in-marketing-campaigns">control group</a> – randomly selected users who will not get any recommendations. Thanks to doing this, you will be able to compare two groups - people who see a recommendation and those who don’t. Based on that, you can check the effectiveness of AI campaigns.&nbsp;&nbsp;</p><h4><strong>12. Prepare A/B test&nbsp;</strong></h4><p>If you’re not sure which recommendation will be better on the product page - similar or visual recommendations - or you’re wondering if you should put the product frame higher or lower on the category page, you don’t have to guess. Just prepare an <a href="https://synerise.com/blog/ab-tests-your-way-to-read-customers-minds">A/B test</a>. After a selected time period, you can check the results of each campaign, including its CTR, revenue, number of transactions and products bought, conversion rate and more. Knowing which campaigns perform better helps you to make the best business decisions.&nbsp;</p><h3><strong>Cooperate</strong>&nbsp;</h3><p>The tips above will give you a head start but integration is a process, during which you will learn what can be changed, what else you need and what works best for your customers. With your business knowledge and the experience of the integration team who will support you, you will be able to truly elevate the experience of your customers. Remember, that cooperation is the key to success.&nbsp;</p><p>&nbsp;</p>

Shopping basket with AI icon and plus icon which represent AI recommendations in ecommerce

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Here’s what you should pay attention to in any AI implementation journey, in order to uncover the most value for your business. Check the best practices!

How to boost AI product recommendations in e-commerce - best practices! | Synerise

How to boost AI product recommendations in e-commerce - best practices!

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