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Segmentation is The CRO Secret For eCommerce

Segmentation is The CRO Secret For eCommerce

Need to optimise your eCommerce store?

Win by segmenting your users

In the physical world when selling your products to different people you generally speak, act and offer different points of value. But how do you do that online, when you can’t see the person? How can you offer the right product in the right way to the right person? It’s definitely a skill but it can be done…in the CRO space, we have a secret weapon.

Segmentation.

Building a profitable eCommerce business is a hard task there’s no denying it. Just think about all that mass data and overwhelming piles of site metrics, which makes it hard to keep on track and distinguish which customer information is useful.

This raises the question; how should you present your website to different types of customers while still being relevant? Well, even though eCommerce is one of the most difficult branches, it also has the most opportunity in terms of increasing conversion rates! Welcome to customer segmentation…

What is Segmentation

Wikipedia defines segmentation as “dividing a broad target market into subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.”

So, in essence, a segment is a group of people with common needs that respond similarly to a marketing action. You need to be able to describe a segment through their attributes and behaviours. Why? Because you can’t approach all your customers in the same way. Nobody is the same…you are not your neighbour and he is not his mother.

How Do You Execute Website Segmentation

A lot of experts talk about segmentation but generally, the first question asked is how you should start segmenting? Well… there are several cool ways to segment your users.

1st Party data
This is YOUR data. That means, ALL of your data. From behaviours, actions, interests demonstrated across your website or CRM data.

3rd Party data
This is data, like profiles of users, you can buy from other websites. The data is generated on other websites and often aggregated from other websites.

Customer Personas
With the collected data you can delve deeper through using heat-maps and click-tracking. This leads to greater insights as it shows where customers look on the website, what attracts them and what aspects they glide over and don’t interact with.

By combining these in-direct and direct insights from your customers enables you to really understand them. From here, you can start building your customer personas.

Once you have segmented your customers into personas you’ll be able to test your findings with A/B tests. Make sure to target the specific characteristics of your personas by testing the areas below.

By understanding your customer personas will allow you to make your site more relevant to your different customers’ needs, interests and motivators. As such, your website will be able to cater to the varying requirements of your entire customer base and not simply one individual.

The Process of Website Segmentation

This may sound like a lot of work and a huge journey before you have your winning solution however there are only 5 steps involved to set you up for success, they are;

  1. Segment your users through generated data
  2. Identify what segment has a problem or an opportunity area.
  3. Develop a solution for the problem or capitalise on the opportunity
  4. Run a series of tests for that specific segment
  5. The test with the highest increased conversion is the winning solution!

It’s as easy as that! Just follow these steps and you’ll be well on your way to buying that Ferrari you’ve been dreaming of as you are now a winning CRO expert!

Self Segmentation

By providing options for users to self segment, you are pulling traffic further into the funnel and providing relevant pages where they are more likely to convert. Self-segmentation not only provides the individual with relevant content but gets them interacting with your site.

The Value Of Segmentation For Your Business

All CRO experts love segmentation for a reason. It has so many points of value for every eCommerce business. By pinpointing that specific segment you want to reach, you will add value to that segment.

As a result of this targeted approach, you can expect to see an improved User Experience of your website, which will lead to more loyal and repeat customers and finally a higher Conversion Rate which is the ultimate goal. So, how could you not love segmentation?

Contact Conversion Kings to find out more about segmentation strategies for your business.

                           

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