“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” Jeff Bezos 

Customer segmentation in the context of ecommerce marketing is the method of utilizing customer data to prepare a customer group that has shared attributes in order to customize communication to say many things in different ways. In this customized communication, people believe their requirements and interests are addressed explicitly thus, they tend to respond better and be a high value to your business.

Here are some of the benefits that customer segmentation brings to ecommerce who incorporate it into their online marketing strategies:

Demographic Segmentation:

The fundamental ecommerce segmentation of your marketing efforts should be based on demographic data regarding your customers that you’ve collected. This might be: Gender;  In case you sell to both genders, make a distinctive male and female version of your newsletter. Age for example, where you can design a campaign of student discount focused for those who fall into the right age group. Location; for instance,  designing personalized campaigns to get people shopping offline such as ‘visit your local store’.

Higher Conversion Rates

When your marketing messages are relevant to the interests and circumstances of customer’s need, it is possible that they purchase from you.

Long-term Revenue From Customer Retention

Compared to retaining the existing customers, gaining new customers is more costly. That is why making your marketing contextual is a key driver of long-term profitability and also of improving each customer’s lifetime value (LTV) as much as possible.

What Factors Should You Consider When Identifying Customer Segments?

Sending customers the right message at the right time is what relevant marketing is all about. In order to adjust your messages of marketing according to diverse audiences, there exist numerous methods of examining your customer base from different viewpoints.

Here are some of the top ecommerce segmentation hacks for Profitable Customer Loyalty:

Provide Improved Support for High Revenue Customers:

In ecommerce, the saying “20% of your customers generate 80% of your revenue.” is absolutely true. You will surely have customers who hold a high value. Now, you let slip a big opportunity by treating these customers just as the way you treat every other customer. Your goal is to make these profitable customers feel esteemed. This can be done by offering them perks and advantages. So, with the measure of revenue, classify your customers and decide a percentage to whom these perks will be offered.

The value of a loyal customer – An Infographic 

Upgrade Shipping for High-Frequency Buyers

An important segment in the process of a customer’s decision making is shipping. If a customer sees the shipping unpropitious, it is highly likely that they will quit their shopping cart. Also, for the customers who often fix the orders, the cost of shipping is substantially eminent and instead of a direct discount, they will view higher value in receiving cheaper rates or advance shipping. Customer segmentation can come handy to trade the customer’s loyalty by providing shipping related incentives and getting your high purchase frequency customer. Decide a standard between a customer and a frequent buyer. It can be decided either order per month or per year. Then your customers can be classified by orders it will be easy for you to know which customers to incorporate in this segment.

Surprise Customers Who Open Emails But Don’t Purchase

While using an email marketing platform, the sellers possess a buyer list who are opening their emails but never respond to make a buying. Many a time either they wait for a particular time or they wait for a specific offer to buy. By providing these customers any form of incentive, they can be persuaded and encouraged to do shopping. These incentives can range from loyalty points, a discount coupon, or a complimentary gift. Instead of always waiting till the time they are emailed a discount, you have a huge possibility to transform them into a loyal and regular customer by encouraging them to join your loyalty program. You can go through the reports and analytics that are given by various email service providers to see which customer does always opens your email but never makes a purchase.

Incentivize Brand Promoters Using Net Promoter Score

Net promoter score (NPS), enables you to know the fact that how a customer will possibly be promoting your brand to others. Once a customer has done shopping from your ecommerce website, you can email them an NPS survey to fill out. Their answers can then be assessed and then you can take the next step respectively. On the other hand, you can also ask those who recognize themselves as promoters to assist you to expand the word. Email the customers your NPS survey a couple weeks after they are done with the shopping and depending on the nature of the customer;s answers,  classify them into various divisions. Your detractors are anyone who selected 0-5 and your promoters are 8-10. It’s as simple as that.

Remind Last Minute Purchasers to Buy Now

The majority of shoppers define a particular time they like to buy, chiefly during a holiday season or a long weekend. To place an order, it is possible that these last minute buyers will wait until the last possible moment but in order to reinforce them to do the shopping sooner, you can devise campaigns for these customers. Segment these customers and give them a promotion that terminates before your last promising date of delivery. This method will urge these segmented customers to repeatedly not wait until the last minute. And an additional reward can be provided by you if they pay higher than the average order value of that segment.

Gaining Customer Loyalty

The ultimate result of a customer’s excellent experience is loyalty. Relevant and personalized communication also an essential component of a good customer experience. The moment a customer is connected to your messaging on a personal level, the possibility of earning their loyalty is much higher. The segmentation tips mentioned above will provide you the opportunity that you require in order to begin building loyal, repeat customers!