In eCommerce, segmentation involves dividing the sum of your customers/visitors into more manageable groups based on who/what/where they are.
First, understand why segmentation (and its more algorithmic sibling, personalization) works:
- are overloaded with marketing messages and somewhat intimidated by the amount of products available.
- have less and less patience to process all the information coming at them from multiple channels.
- when shopping online, typically want to quickly find the right product, fast.
- will take their business elsewhere if they don’t see compelling content and products.
Segmentation is a critical step for providing your visitors with relevant content (like products, language or UX experience). The segmentation approach helps consumers move smoothly from product discovery to purchase.
Segmentation divides consumers into groups or target markets based on different criteria or categories, such as:
- Demographic: gender, age, income, language, location, etc.
- Behavioral: impulse buyers vs. people who research products for months before purchasing, for example
- Technological: type of device the consumer is using (mobile, desktop, tablet).
- Firmographic: information about the visitor’s company/organization – this is especially useful for B2B eCommerce.
- Transactional: what a consumer bought in the past.
- Psychographic: people’s different values and beliefs.
40% of consumers would provide personal data in exchange for more tailored experiences (Accenture).
In this example from Dynamic Yield, you can see the different types of information used to segment: User Type, Device Type, Country, Weather Conditions, Lifetime Value, Objective.
Once the segment has been created, the next step is to determine which kinds of content the members of this segment will see when interacting with your eCommerce platform and channels.
So … where do you get this data and how do you create segments? Well, that’s when you call the experts. To get started with segmentation, increase average order value and raise value per session, get in touch with our eCommerce Consulting + Advisory Service team.
Written in collaboration with Chiara Fumagalli, Absolunet’s Digital Personalization Expert.