What is eCommerce Segmentation?
Imagine walking into a boutique you frequent and having one of the staff members greet you by name and show you new clothes since your last visit.
The staff gets to know your taste in dresses (your favorite colors, sizes, and styles) and recommends some for you.
How would you describe this whatsapp and digital marketing experience? Exciting, right?
These experiences are exactly the same as what we encounter at our favorite restaurants, boutiques, local shopping centers, and more.
The question now is how do weE-commerce StoreThere was little to no physical contact?
This is where eCommerce segmentation comes in.
E-commerce segmentation means grouping customers based on specific criteria in order to better understand and serve them.
You can improve the shopping experience and customer loyalty by segmenting your customers.Event Management PlatformA useful tool for tracking your progress and staying organized while segmenting.
This article will introduce nine e-commerce segmentation techniques to increase customer loyalty and provideA tailor-made experience.
Let’s get started.
1. Upgrade shipping for high-frequency buyers
Do you have regular customers who shop at your store? If so, how do you compensate them for their frequent purchases?
You simply cannot afford to lose such customers as you will lose brand evangelists and orders.
To avoid this, reward frequent buyers with upgraded shipping , offer lower shipping rates specifically for them, etc.
This improves theirShopping ExperienceAnd give them more reasons to stay loyal.
How to segment them
Determine the number of orders and revenue required to qualify a customer as a high-frequency buyer. It could be a customer who buys 10 units per month or $2,000 worth of products per month. Once you’ve decided, rank the customers who fall into that range.
2. Provide high-end support for high-income customers
57%of consumers say good customer service is critical to brand loyalty.
In other words, three out of five customers will become loyal to your brand if you provide good customer service.
If your customer service is terrible, people will leave and give you bad reviews. And you can’t risk losing customers who bring in a lot of revenue doing and emails is especially because of bad service.
So, prioritize your top customers when it comes to customer support. You can do this by offering fast product delivery, extended return policies, quick responses, etc.
How to segment them
Sort customers by lifetime revenue (total spend) and create support tiers based on total spend.
4. Cross-sell based on customer purchase history
Cross-sellingIs the act of promoting additional products to your customers. The recommended products must be related to the products that the customer buys or has bought.
For example, it makes sense to cross-sell shaving cream to a customer who buys razor blades. But there is little chance of success in cross-selling baby toys to the same customer.
McKinsey believes that cross-selling canIncrease profits by 30%If executed properly.
You can use an email marketing platform to cross-sell. That is, you can send and automate cross-sell emails to your customers.
You can also add phrases like “ People also bought ” and “Best picks for you ” in your thank you email.
Amazon does this very well:
How to segment them
Sort customers by product category and purchase history.
Cross-sell them products from the same product category.
You can also sort customers by specific products and create marketing campaigns to cross-sell them.
5. Incentivize Brand Promoters
If you have customers like your friends both online and offline, then congratulations. This shows that you provide them with excellent service.
But don’t stop there. Reach out to your brand promoters and incentivize them. Set up a referral program where customers can earn rewards any time they recommend someone to your business.
You can also incentivize them through gift cards, coupons, discounts, gifts, and more.
How to segment them
Sort brand promoters byNet Promoter resource data Score(NPS). NPS allows you to survey your customers to determine how likely they are to tell others about your brand.
It uses a pointer scale of 1 – 10. Customers who score 5 or higher are likely to be brand promoters.