Tired of cart abandons? Can’t figure out who your most valuable eCommerce customers are?
Meet eCommerce segmentation - where you activate your most profitable visitors.
This is your magical marketing spell to identify that 1 to 5% of customers, who contribute up to 95% of your revenue. That’s because eCommerce segmentation is based on valuable market insights.
You get to study your unclassified users to group them under proper market segments. In addition, you also get to understand your buyer personas and analyze the collected data to curate successful stories out of your marketing efforts.
In this blog, I’ll enlighten you of all the eCommerce segments you need to create to get the best value out of your marketing campaigns.
Table of Contents
1. eCommerce Site Visitor Status Segment
Not all your visitors login to your eCommerce store to browse your products or make a purchase. While some eCommerce stores allow visitors to purchase products even without logging in, some would not.
So, irrespective of the login model you have for your visitors and customers, you need to create this site visitor status segment.
Your loyal visitors and new visitors ought to be treated according to the value they yield to your eCommerce business. So, if you are able to track the visitor’s behavior each time they visit your online store, then you would be able to render personalized user experiences.
To create this segment, I want you to log in to your Ingage account. Head to the Segment module and set the eCommerce attribute as Site Visit and Login, as shown in the image below.
This will help you create two different segments - one of those who log in to your site and the other would comprise your visitors.
2. Transaction Status Over A Period Segment
Your customer who has bought something from you some time back might be tempted to try something new if you could give him/her a promo code.
So, keeping track of who has purchased something or otherwise is a great way to run timely marketing campaigns.
To create this segment, you need to add Transaction filters.
The transaction duration can be on or after or before a specific date. Or it could also be between a range. You can either use union or intersection rules to define this transaction duration.
So, once that is set, you can go ahead and create your segment. And here is a simple use case on how you could use this segment.
For those who have remained dormant in the specified duration, you can send out a coupon. And to those who have been lively, send them a curated list of relevant products.
3. Customer Segment with High Cart Value
If you would run a data audit of your customer transactions, you would notice folks who have really high cart value, besides those adding average and low fiscal benefits for your eCommerce store.
Sometimes, these high spenders might just make 1% of your customer base, but they can give you value as high as the bottom 50% combined.
Now, you really don’t want to miss personalizing their experience, do you?
To optimize their experience to the fullest, you can create segments of who spends more, average, and less.
You can do this by creating customer filters on the Ingage segment module.
Here’s an example of how you could get started with customer cart value segmentation.
If you’d notice, I have set the condition to create three segments, keeping the basket value as the theme. So, those who spend more than 5000 currency value could be your high-value customers. And those spending between 3000 to 5000 would be your average customers, and those below 3000 would be your least valuable customers.
4. Location-Based Customer Segmentation
Thought location-based segmentation was only for your brick-and-mortar chains?
Well, geolocation is as good for your online stores. Because this is key to figure out which location is most interested in your products.
You can then leverage this valuable insight to introduce additional products that your local audience would love to buy. In addition, this will help you promote your rain jackets to your Alaskan customers instead of your Floridan customers :)
5. Customer Segment Based on Traffic Source
Are your eCommerce store visitors coming from Google search results? Or from your Google paid efforts? Or from your social touchpoints?
Well, understanding the source of traffic can help you discover how one segment differs from another in terms of shopping behavior and buying patterns.
To create this eCommerce segment, you can add Page Url filters.
In the ‘Input Value’ filed you can enter the Url. Then, create as many segments as you would need by adding the criterion and run the segment.
6. Customer Segment Based on Device Type
Mobile-first experiences are no longer a nice-to-have, rather a must-have feature. And believe it or not, mobile visitors already are responsible for over a quarter of total web traffic.
So, it’s vital that you analyze how your desktop users behave differently from mobile and tablet users, and vice-versa. After all, screen size does influence browsing and purchasing behavior.
Now, to create a segment based on the device your customers are using, Ingage has an eCommerce filter.
Set the attributes to Platform and create segments when they are equal to mobile, desktop, and tablets.
7. Gender-Based Customer Segmentation
You never want to send maxi gown product recommendations to your male customers!
That’s precisely why Ingage offers you the capability to create male and female customer segments.
Using this demographic segmentation, you can custom tailor your marketing messages and engage your male and female customers.
8. Customer Segmentation on Special Events
Running offers and wishing your customers on their special days such as birthdays and anniversaries can get them to bond with you emotionally.
In Ingage, even without creating a segment for those customers celebrating their special days, you can run automated personalized journeys.
But this is a two-stage process.
First, log in to your Ingage account and create a campaign. Then head over to the Journey Builder and start with the automation.
Here, you are basically starting with the Special Event trigger. You can run it daily, so that when the trigger fires, your e-mail campaign would be delivered.
When the mail is delivered or opened (you can set your choice), you can wait for your customers to avail of your offer. In case, the desired event does not take place, you can send a belated email campaign as a means of reminding your customer to leverage the advantage.
If they complete a transaction, great! If not, you can end the journey and hope for better results the next time.
9. RFM Intelligent Segmentation
RFM/RFV segmentation stands for recency, frequency, and monetary/value. This segmentation helps you understand your customers’ shopping behavior, primarily by analyzing the last purchase they made, the number of purchases they made in a time frame, and the amount they spent each time.
However, note that you must never run a recency segmentation alone, apart from frequency and monetary, and vice-versa, to discover your high-value customers.
I’ll tell you why.
Let’s say that you run a value segmentation. You get a list of customers. But what if amidst the lot, some users were only one-off customers and never came back?
They can’t be your most valuable customers, right?
If that’s the case, you might ask me how to actually find them, isn’t it? Well, Ingage has a feature called an intelligent segment, that allows you to discover your most valuable and churning customers.
You merely have to click the buttons to get your RFV segmentation. It’s as simple as that with Ingage.
But I don’t want you to remain in the dark as to how you actually discover your most valuable customers.
So, your most valuable customers are those who are frequent, spend enough, and keep coming back to you. From the pictorial perspective, the users who fall in the intersection of the Recency, Frequency, and Value sets, are your highly valuable customers.
And here’s a heads up! If you want, you can still run segments to discover your frequent customers, recently bought folks and those whose cart values are high. For there are still different ways to endorse segment engagement.
It’s just that, running these separate segments wouldn’t help you determine your most valuable customers.
Other than that, you can surely go ahead and create these individual segments for better engagement and move them towards the intersecting set of RFV.
10. New Customer Segmentation
You certainly want to say hello to your new customers and give them reasons to continue doing business with your brand.
In fact, this should be your first step in dividing shoppers according to the customer lifecycle stages (also known as the customer journey stages) with your brand. This way, once you create your core new customer segment, you can then dig deeper to understand if they are one-time shoppers, or if they could become potential customers, and so on.
So, here’s how you segment your new customers.
Go to the segment module on Ingage, and set the customer attribute filter to ‘Total Transactions’. Let the equality condition be set to 1. This way, you’ll be able to handpick all those customers who’re your newbies.
11. Repeat Customer Segmentation
How do you define your repeat customers? Well, they are folks who have already purchased with you before.
So, these are the new customers who have decided to come back and continue doing business with you.
Again, within the repeat customer segment, you can create micro-segments that target repeat customers who have purchased twice or repeat customers who’ve disappeared.
The latter disappearing segment is your at-risk customers and you can create a churn segmentation, combine these folks so that you know how to re-engage them with your brand.
With Ingage, discovering your repeat purchasers is basically a sub-segment of your RFV core segmentation. Since your repeat customers have the potential to show customer loyalty, you can use the approach below to configure the repeat customer segmentation on Ingage.
12. Loyal Customer Segmentation
Your loyal customers are similar to your repeat customers, except that they are way more active. These customers are those who regularly and consistently engage with your brand, offers, emails, and campaigns.
At this point, I want you to note that your loyal shoppers can be categorized into low and high spenders. So, you’d want to segment them and run engagement marketing campaigns.
Let’s see how you could do this on Ingage.
You have to enable both Customer and Intelligent Segment to segment customers by high and low-spending loyalists. Then, you can set the necessary filter by first setting the RFV to loyalist.
To get the micro-segments, you can define the ATV values and get your segmentation.
13. Cart Abandonment Segmentation
It’s hurting to admit that on average across all industries, 69.57% of eCommerce store owners struggle with cart abandons. The worst thing? Amongst the mobile users, who contribute to a quarter of the world’s web traffic, 85.65% of mobile device users abandon their carts.
Now, there could be a lot of reasons attributed to this loss. But to even get to the point of analyzing where you’ve gone wrong, well, you need to segment your cart abandoners.
And here’s how you do this on Ingage. Enable the E-commerce segmentation and set the attributes to the add cart event.
Then, head to the journey builder and choose this segment. While defining the automation, you have to wait for an event to occur. And let that event be a transaction.
So, if there is a transaction for this created segment, then you a thank you email campaign along with up-selling and cross-selling promos. On the flip side, if your customer hasn’t made any changes for over a day, or any time you set as the threshold for making this transaction, you can launch friendly reminder emails and nudge your customer to look at his shopping cart.
14. Churn Intelligent Segmentation
Customers who are churning are those who are slowly ceasing to do buy from you. They might move from being a loyalist to a moderate and then eventually disappear.
Oftentimes than not, retailers struggle to identify churn in its inception stage. So, most of the time, you realize that churn has taken place only when your bottom line starts dwindling.
For this reason, Ingage measures the churn from slow to medium, and high. Those who are churning highly are your high at-risk customers. [Translation: Delay further, you lose them to your competitor!]
To create your churn segmentation, enable Intelligent Segment and set the attribute to churn. Then define the churn condition to high, medium, or low.
15. Thrifty Customer Segmentation
Your thrifty customers are those price-conscious folks who are very careful about how much they spend on your products. You can track them by monitoring their on-site behavior.
Some examples of these thrifty shoppers include those who browse for discounted products. It could be folks who you re-engaged with a discount code. Then, it could be those customers who sort the product lister page using the low-to-high price filter.
You can create your segment by defining two rules. One, to capture customers clicking on your products and the other to track whether that’s a discounted product or not. You can do this by specifying the product category.
16. Products Clicked Segmentation
Sometimes, you might have curious visitors. They might as well look about everything in your eCommerce store, but not advance towards a purchase in recent times.
Now, this type of visitor behavior is an opportunity indicator. Their activity on your site shows that they are interested in your products. So, you can create a segment for those of your customers who browse your products. Then, put them on an automated product recommendation journey.
But how do you find these customers?
Well, you can set the filter to their previous purchase date being 45 days ago. Along with that, set their last active session to a week ago. This filter will help you segment curious customers, showing a high potential for buying your products.
17. Coupon Loving Customer Segments
Does your marketing strategy involve coupon campaigns?
Boy, you need to check if you have coupon lovers among your customer base. Because there are probably some customers who only with a coupon and never pay the full price.
While it’s natural for you to get annoyed with these customers, there’s a redeeming option to simulate more orders from these coupon lovers.
To catch these customers, you can go to Ingage, and set the transaction attribute to a true value for the coupon. Then, you can set your customer attribute data to one total transaction value.
You can also set the total number of transactions equal to the number of coupons you’ve sent out. Rinse and repeat this segment and you’d find the lot that loves to buy only with your coupons.
You can then run your coupon campaigns only for this segment, and for the rest, cut it back. So, the basic idea is to keep the sales coming from the price-sensitive segment while also not devaluing your products with constant promotions.
Your customers are all unique. While you can’t change their purchase behavior, you can certainly find ways to engage them with your brand by creating these eCommerce customer segments.
Render unparalleled customer experiences with the aforementioned segmentations on Ingage!
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