Wouldn’t it be the epitome of ease if we could just reach out to our whole market in a collective gesture and attract every single customer the same way? Unfortunately, that’s not how the market works. Every market has extremely different customer variations and each customer has distinct shopping behaviors, demographics, and lifestyles. And each of those factors needs to be addressed separately! In the eCommerce world, customers have even more diverse characteristics.
So how do you segment the market in an organized manner for sustainable marketing strategies? We’ve broken it down for you in a simple guide. Here are the different ways you can segment your online market.
Buying habits of females can be different from males, especially in the fashion industry, and older shoppers probably have more traditional tastes than the youth and millennials do. Thus, gender and age are considered significant differentiating factors in the market. Geographics are also important considerations, particularly for product-shipping purposes.
As a fact, the top 1% purchasing customers generate around 50% of the revenue. So knowing your top customers is a substantial step. You can segment them as Top Dollar Spenders or as those with the Most Orders. This way, you can target them directly to retain them with rewarding programs, special offers, referral programs or for other marketing purposes.
Visiting customers require different treatments according to their corresponding characteristics. A new or prospective customer needs gripping marketing material while a one-timer needs incentive such as promotions to switch to being a repeat purchaser. Loyal customers cannot be addressed the same way as any of the aforementioned groups. Thus, it is smart to target each of those as an individual segment with its own needs and requirements.
Activity and Frequency
How active a customer is as well as the customer’s buying frequency speaks volumes about who that customer is. Activity can be logged through a ‘last 30 days’, ‘last 6 months’ or ‘last year’ basis. If the customer is inactive, that too should be addressed differently through email reminders or promotions. Buying frequency is a trend that can be tackled so that the period of time between one purchase and another can be shortened, leading to more frequent purchases.
Here is a sample of how Revamp CRM allows you to segment your customers easily and efficiently.
Revamp CRM not only gives you the smartest tool to help you segment your customers in easy steps. It also automatically segments your customer data base into different segments based on shopping behavior (New Customers, Customers With One Order, Repeated Customers, Inactive Customers, Customers With Abandoned Carts and much more..)
Monitoring the customer’s response to your marketing efforts will help you, not only increase your most effective forms of marketing but also understand which marketing efforts appeal to which segments. Do you get more clicks from emails rather than from ads on social media? What are your emails’ open rates?
Customers with Abandoned Carts
Just as inactive customers require special treatments, customers with abandoned carts offer huge potential for retention and need to be targeted effectively. In fact, this segment is incredibly more prospective than attracting new customers. Customers with abandoned carts are already aware of your business, have searched your directory and have highlighted their preferences when they added products to their carts. They’re one step away from a purchase and you can urge them to it through discounts.
Product Category of Interest
One of the final and incredibly promising prospects for a segment is the product category of interest segment. This is important because it shows you the customer’s lifestyle. Based on this, you can direct more product recommendations as well as know your customers better.
These segments can overwhelm just as they can serve great purpose. To better manage your segments, Revamp CRM software offers an all-inclusive platform that breaks it all down for you, helps you monitor statistics as well as take action. Understand each segment’s size, its contribution to total revenue and directly target it through this comprehensive tool that will revamp your business.