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| 10 Easy Ways to Segment E-Commerce Customers |
1: Cart abandoner
2: Coupon lovers
3: High spenders
4: One time
5: Slifty shopper
6: Faithful customers
7: Indecisive customers
8: Ebook subscribers and newsletter readers
9: Registered browser
10: By customer location
1: Cart abandoned
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| 10 Simple E-Commerce Customer Segmentation Strategies to Increase Sales |
The-Cart-Abandoners
As the name implies, this is a group of customers who couldn't complete their purchase after adding one or more products to their shopping cart. They are a tough group that you need to approach to encourage them to return to your website to complete the checkout process.
Many customers abandon their carts due to interruptions, but many do not buy after looking at shipping costs or realising that the item may not meet their needs.
Sending a "comeback" email to everyone doesn't complete the task. Customers need to be grouped based on their level of interest and product.
You can use this background information to create a custom message for each segment. For example, you can add a link to a related product in your email to provide more options.
2: Coupon lovers
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| 10 Simple E-Commerce Customer Segmentation Strategies to Increase Sales |
Advertising for Coupon Lovers-Photo Provider: Not High Street
Many online shoppers follow brands on social media platforms for the giveaways and coupons they offer. This customer group only purchases products if they are available at a discounted price. Despite the hassle, you can turn the tide and use their actions for the benefit of your business.
Filters available customer data based on filter criteria such as "Used Coupon". Tweak your selection by further filtering the data based on the number of orders placed using the coupon. These filters help you know if the number of orders matches the number of redeemed coupons.
Once you have this information, go back to the blueprint and create a discount for this selected customer group. When making an offer, the goal is not to reduce the value of the product, but to increase the number of orders from customers.
This strategy helps us stay competitive and secure a consistent number of customers, especially during off-peak seasons.
Also read: Use discount pricing strategies to make sales
3: High spenders
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| 10 Simple E-Commerce Customer Segmentation Strategies to Increase Sales |
Special Ads for High Consumers – Photo Provider: Tidio.com
Every e-commerce store has a group of customers who spend thousands of dollars on their products than the average customer. This group makes regular purchases or places large orders once every few months or weeks.
These help the e-commerce store grow because they generate more revenue than other customer segments. Your goal should be to develop a way to handle them well to hold them.
Marketing emails and offers you send to them should show that you are grateful for their loyalty and contribution to the growth of your brand. Make your shopping experience as memorable and smooth as possible.
All customers who spend more than their average customer lifetime value (CLV) belong to this group. You can narrow your selection by setting multiple revenue thresholds that exceed the CLV. The next step is to please them with incentives such as:
Gift wrap
Add a special surprise to your delivery package
Providing early access to new products
Special warranty and maintenance
Express or free shipping
Special value packs and bundles
Dedicated customer support team to facilitate the shopping experience
4: One time
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| 10 Simple E-Commerce Customer Segmentation Strategies to Increase Sales |
Advertising for new customers – Photo provider: ThredUp
One Time is a customer who has purchased your product only once. Use the database "primary" filters to identify them. This is one of the easiest customer groups to find customers and seduce them to place more orders. You need to do the following:
Product cross-sell and up-sell to them
Impress your brand with a powerful content marketing strategy
Must be purchased to create and participate in unique games related to new products that you may be interested in
Carefully request a review of the first product in exchange for a discount or coupon for your second purchase
Announcement of new products based on seasonal changes
To get the best results from this segment, take the time to research the market before implementing any of the above strategies.
5: Slifty shopper
The success of an e-commerce store depends on how well you understand the shopping habits of your target customers. Unlike large consumers, who spend thousands of dollars on a single shopping order, frugal shoppers buy only the products they need at a particular moment.
They have a budget and try not to exceed it when shopping.
The highlight of this customer segment is the ability to predict when they will return and shop. For example, if you know that a bag of dog food lasts only 3 weeks, you can send a reminder after 3 weeks.
Special ads for frugal shoppers – Photo courtesy of Nasty Gal
Identify this customer segment by filtering the available customer data based on the above, low, or near several customer lifetime values, or the total revenue generated by the customer.
This segmentation provides a list of customers who have purchased a particular product but are enthusiastic about not overusing it.
Below are five possible tactics to help you perform this form of segmentation without sweating.
It continuously monitors the product cycle and sends incentives such as discounts 1-2 days before the estimated repurchase time elapses. Comprehensive cohort/retention analysis helps you know when they are likely to come back.
Offer discounts on bundles of related products
Providing new information about products and trends related to needs and preferences
Use your wishlist to create discounts for lasers
Request feedback
Also read: Top 8 social media strategies that every e-commerce store needs to implement
6: Faithful customers
Special Ads for Faithful Customers – Photo Provider: DSW Shoe Brand
Having a constant flow of loyal customers is the dream of every entrepreneur. These customers drive the growth and sustainability of their e-commerce stores by providing a stable revenue stream.
They trust your brand and its products. Therefore, they come back and buy regularly. They are also likely to recommend your product to their friends, family, and colleagues.
More importantly, they interact more often with your business and therefore have a clearer understanding of your products, pricing and giveaways than any other customer.
Due to their unique shopping behaviour, they have more orders and shopping sessions than the average customer.
Do not twist. Faithful customers are not always in the category of high spenders. The latter can visit the store and buy some expensive products and will not come back for months or even years.
Maintain their interest in your store and the products you sell.
Create a unique reward points program for them
Send secret offers/discounts not available to other customers
Includes automatic reorder option/resubscription option
Prompt for input when creating a new product
Actively request their feedback after they shop friendly to continue to meet their needs
Offer a discount hierarchy based on the number of orders
7: Indecisive customers
Indecisive customers are not sure if your product will meet their needs. They spend time browsing your online store but rarely buy. You may find that they spend time chatting with support or abandon the cart after packing certain products.
Use filter options such as session count and order count to identify them. The number of sessions can be as high as 7, and the number of orders can be as low as 3 or 2. This all depends on your niche and the goals you want to achieve.
-Indecisive-Customers
Message Targeting Indecisive Customers-Photo Provider: Tidio.com
Help them decide to convert.
Provides more information about the product, including different models and sizes available, more photos of the product captured at different angles, etc.
Emphasize unique selling points (USP), exchange and return policies, and shipping
Incorporate social proof into marketing emails
Create a wishlist to make it easier to find the product that suits your interests
Read more: How e-commerce businesses turn organic traffic into valuable leads
8: Ebook subscribers and newsletter readers10 Simple E-Commerce Customer Segmentation Strategies to Increase Sales
Advertising for the new subscribers-Photo provider: David Jones Online Store
Content marketing is one of the guaranteed ways to convey the intended message of an e-commerce store and the products it offers.
If you've invested time and thousands of dollars in creating content, you'll want to know who takes the time to read it.
Tag your eBook and newsletter subscribers to see how often you read and order your content. This information helps you understand how your content influences your purchasing decisions.
Do they buy after reading the newsletter about recently launched new products?
Get more sales from eBook and newsletter subscribers.
Send the latest information on new patents, features and new products
Create interesting, engaging, fresh and concise content that is not only informative
Subtly include products in your content to avoid compromising the sales and credibility of your online store
Give them a special offer
Encourage them to continue reading your content by providing insider tips, consultations, and other forms of value related to the products they are most interested in.
9: Registered browser
Customers are likely to generate more leads than you by using newsletter subscriptions, wish lists, pop-up ads, and coupon giveaways.
You need to take action and start making money from all registered browsers.
This customer group visited your website and browsed various sections. One of the simple segments is to set the filter to a large number of website visits such as 5. The filter should be 0 or 1 depending on the company you are running.
The advantage of this form of e-commerce customer segmentation is that they are interested in your brand. If I wasn't interested, I wouldn't have completed the registration process or downloaded the PDF product information document.
-Registered browser
Advertising for customers who are already interested in the brand – Photo provider: The North Face
Encourage them to shop for the first time in your store.
Create great content about your product, post it on your blog, or email it.
Give a special discount to the first order
Remarket to them based on the categories and products they saw
10: By customer location10 Simple E-Commerce Customer Segmentation Strategies to Increase Sales
As mentioned earlier, geographic segmentation is paramount when selling seasonal products. Don't bother your customers by sending offers for off-season products or by not meeting the climatic conditions of the location.
When creating a promotion, consider all customer locations for best results. Lifestyles and cultures vary from place to place. Understanding them will ensure that you show the utmost respect for their beliefs and customize your marketing campaign accordingly.
Harvey Nichols, a well-known UK store, is a good example of a company that sends the following print ads to customers in Islamic countries during Ramadan. Understanding the religion and culture of our customers has helped companies gain significant traction in these countries.
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