The Best of Personalization & Segmentation
! May 4, 2017 | E-commerce tips | 1 |. The Best of Personalization & Segmentation!

Segmentation and personalisation – marketers often get them confused.

But they’re not marketing buzzwords that can be used interchangeably. They’re two very different marketing strategies.

We take at look at what segmentation and personalisation are, describe how they differ and explain the benefits of each.

Segmentation is about groups. It’s about the marketer breaking down their target audience into smaller clusters of people. These groups or segments are made up of people who share similar characteristics. Here are just a few examples of the types of characteristics you could use to segment your market:

  • Demographics – age, gender, occupation or income.
  • Sales funnel stages – awareness, evaluation, purchase, loyalty.
  • Personas – aspects of people’s characters or circumstances that can be used to create realistic representations of key audiences.

    Personalisation enables you to deliver marketing messages that are only relevant to the individual.

    It’s often designed to look like a one-off personal conversation between a customer and brand.

    The ability to deliver unique messages improves the effectiveness of your marketing. Pretty much every marketing metric can benefit from personalisation: conversion rates, website bounce rates, average order values, cost per acquisition, and customer lifetime value.

    Additionally, personalisation works in real-time. While you might have rules in place to move people from one segment to the next, (e.g. moving from the ‘awareness’ to ‘evaluation’ sales stage), personalisation reacts to the now. A website powered by personalisation would react and change in real-time based on the real-time browsing behaviour of a visitor.

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