Only 40% of marketers think they have their marketing in place. If you are part of the other 60%, this article is exactly what you need. Read on to know all about behavioral segmentation and how it can help you create a driving growth. It’s time to stop being spammy, stop throwing money on every single user and stop burying your head in the sand.
Must have Segments to Optimize your eCommerce Marketing
1. Benefits sought
What is it that the users are looking for in a product? What benefits do they seek out for? For example, while buying a toothpaste, what qualities do users look for? Is it the whiter teeth. is it the cavity-fighting qualities, is it stronger gums or fresher breath? What you need to realize is, people, seek varied benefits from the same product.
Let’s take shampoo, for instance, every user users a different shampoo according to their needs, some use anti-dandruff, some use it to make their hair silkier, some want to make their hair smell like lavender and so on. This behavioral segmentation also gives you a glimpse at the problems they are trying to solve by buying the products. You get one more step closer to knowing them better. The point here is to identify what they are looking out for and segmenting them accordingly. This makes sure that the offers you send out are relevant, thus increasing the chances of them transacting.
NIVEA segmented users according to benefits sought like -UV protection, beauty care, creams according to different skin types has made them tap the right spot. This has made NIVEA Sun, provide the right value proposition to the users and is in the number one spot in the UK.
2. User activity
Keeping track of the pages the user visits and the number of times that they visit will give you an idea of what they prefer to browse. The clicks will tell you what interests them, the categories that they usually go through if they add to cart or add to the wish list first or do they directly proceed to purchase. You can also keep track of the products that they click on and if they choose to see the recommended products as well. Where do the users usually drop off? Does price have a role to play in this, if yes how would they respond to a discount offer?
All this data helps you in retargeting users effectively with behavioral segmentation. You can segment them based on their activities. Slip in a discount for the products in the cart, inform them about the availability of sizes they were looking for, etc. You can also make use of behavioral segmentation to target them according to the cards they use during a transaction and provide them with offers accordingly.
For example, PUMA identified customers who were on the verge of becoming inactive and targeted customers who did no transactions in 9 months. They observed users purchase history, assigned different discounts according to their previous purchases and received a 4% CTR by implementing behavioral segmentation.
3. Purchasing behavior
The shopping behavior of a user might depend on external factors as well, such as the changes in the weather and the money they have in their wallet. At the beginning of the month when the salaries are deposited in the bank accounts, there is a higher chance of users converting quicker.
Users are usually ready to splurge during festive seasons, weddings, birthdays, especially if they have to gift something. Check what products do they usually purchase, if there is a pattern to it and how much are they are willing to spend.
Another behavioral segmentation can be based on the time of purchase. Some users are willing to make a purchase right away as soon as a new product that they like is added. For example, when a new model of the iPhone is launched, some users buy it the very same day. While the others might take time, analyze, read the comments, check the ratings and then make a purchase. This assures you that even if you don’t have a great sale the first day, few users will take their time to convert.
4. User status
Users need to be segmented in the stages that they are in. Are they a new user or have they been with you for quite some time now? You need to treat users differently based on the stage they are in. You could actually create drip campaigns to attract new users and share all that they might have missed.
Behavioral segmentation can also be done based on heavy user, light user and zombie user. Heavy users are usually loyal users who depend on you when it comes to an online purchase. A light user is someone who would buy something when an occasion arises; usually an event-based purchase. Zombie users are those who have created an account but have transacted once or twice, or not gone ahead with a purchase at all. All these users should be targeted differently with different messages.
Amazon had experimented by showing different prices to different users according to the users’ status. Dynamic pricing was primarily adopted to give loyal customers better deals. Behavioral segmentation for them not only increased trust but also increased loyal customers.
I agree that it is a lot of work. No one said it was going to be easy. But once you are done with these segmentations, you will start seeing amazing results. To achieve excellence in marketing, behavioral segmentation is a must. You might have to break your head, but it, in the end, it will all be worth it. I promise.