E-commerce is growing at an amazing pace - and there is no sign that this will change any time soon. However, just having an online store is not yet a success. Perfect knowledge of recipients and their appropriate segmentation is of key importance. What are Customer Segments? And on what principles should customers be matched to particular segments?
Customer segmentation at a glance
Marketing is the art of reaching target customers, meeting their needs and thus generating attractive profits. Marketing activities are effective support for promotion and sales processes. However, in order for them to actually translate into real effects, they must be well thought out.
Customers have different preferences, desires, attitudes and value hierarchies that influence their paths and purchasing decisions. The best solution would be to approach each consumer individually. However, for purely practical and organizational reasons, this is not possible. Therefore, you need to look for other options that will allow you to maximally match the offer and marketing communication to the requirements of individual customers, and thus increase the efficiency of the company. Segmentation is crucial in today's marketing.
Marketing segmentation in other words, the division of clients into smaller groups according to strictly defined criteria. Customer segments facilitate making business decisions, and also allow you to conduct effective marketing activities tailored to individual groups. Consumers are allocated to specific groups on the basis of specific characteristics, behaviors, preferences and other values.
Criteria for customer segmentation
Depending on the needs, the nature of the market and the business profile of the company, customers can be divided into one of four categories. These are the factors:
- geographical - e.g. countries, voivodships,
- demographic - e.g. age, family size, gender, income, occupation,
- psychographic - e.g. personality and lifestyle,
- behavioral - e.g. purchasing preferences, customer purchasing path, including the tendency to succumb to bargains, status, frequency of shopping, attitude towards the product.
Customer segments in e-commerce
Every e-commerce company has access to a huge amount of information about its customers. Unfortunately, rarely consciously uses this knowledge in practice - which is a huge mistake. A detailed analysis of customers can translate into real benefits. Customer research and appropriate segmentation allow you to better understand their behavior, needs, motivations and purchasing patterns. Thanks to this, the company can:
- conduct more effective, more tailored marketing activities - incl. SEO or v Google Ads,
- create personalized marketing messages,
- rationally dispose of the advertising budget,
- improve return on investment and conversion rate,
- influence positive customer feedback,
- improve customer satisfaction.
How to isolate customer segments in an online store?
Detailed customer analysis can translate into real benefits.
Entrust it to us, use the acquired knowledge in practice and enjoy the results.
Customer segmentation strategies in e-commerce
According to the Consumer Culture report, as many as 70% customers are inclined to make a purchase in a given online store if it presents values that are close to them. This valuable information can be used in psychographic segmentation, which consists in identifying the values, lifestyle, interests and hobbies of the recipients. Segmentation according to these criteria allows you to understand why customers buy in a specific store and choose certain products.
Where to find psychographic data about clients? First of all, the customer's purchase history should be traced. In addition, it is worth using research, surveys and interviews with clients. Social media are also a real mine of knowledge about consumers.
The second strategy for creating customer segments in e-commerce is to divide them based on the channel from which they came - e.g. from Google search engine, advertising banners, influencer links or e-mail marketing. Particular attention should be paid to the behavior of individual consumer groups - what purchasing behaviors they present, what are their motivations, etc. The analysis allows you to properly optimize your marketing activities in various communication channels, which may translate into an increase in the conversion rate.
An important segment of customers are people who browsed the store's offer, added products to the cart, but for unknown reasons at the last minute changed their mind about the purchase. Research shows that up to 70% are consumers abandons baskets shopping, i.e. does not carry out transactions despite a prior willingness to purchase. In order to reduce this phenomenon, it is necessary to distinguish this group and implement appropriate marketing solutions. One of them is dynamic remarketing, i.e. personalized ads reminding you of abandoned products. As part of marketing activities aimed at "lost" customers, it is worth using e-mail marketing.
The e-shop customers can also be divided into:
- disposable - they only shopped once,
- economical - they often do shopping, but for small amounts,
- discount lovers - they only buy when there are promotions,
- undecided - they browse the store often and for a long time, but rarely buy something,
- "Trendy" - they come back to the store when there is something new,
- loyal - they often return to the store.
One-time customers should be offered related products, and those who are economical and those who like discounts - attractive discounts. Undecided ones can be encouraged with positive opinions of satisfied customers, and the "fashionable" ones should be informed about new products on an ongoing basis - by means of push notifications or e-mail messages.
The most important customer segment is the loyal group. Regular customers are the most valuable for the company. They allow you to generate profits in the long term, and thus help the company to maintain financial liquidity. Regular customers should be regularly informed about new offers, presented with product recommendations based on their previous purchases and bestsellers in the form of targeted ads, for example on social media. It is also good practice to offer customers additional discounts or other benefits (e.g. free delivery) to be used on subsequent purchases. Doing so increases conversion.