As your business scales, segmentation is the only way to continue offering a stellar, personalized customer experience. Maybe you’ve come to the conclusion that some of the businesses you serve have different needs than others. Whatever your reason may be, it’s an important step for all growing businesses. Not only is it important for meeting customers’ specific needs, it also offers an opportunity to gain a lot of information on each segment’s buying behavior, allowing you to build better business, marketing and sales strategies for your business as a whole.
You’ve got a lot of work ahead of you as you identify your key segments and opportunities with each. As you settle in to the nitty-gritty of the details, keep in mind these three Do’s and one Don’t to ensure you and your customers get the most out of segmentation.
Do: Set goals for each segment.
Average order size, quarterly sales, or time spent interacting with content may need to improve, and you’d probably like your visitors to abandon fewer carts. What are the metrics you anticipate from each segment? Create a list of clear objectives you expect to see in each—and no, listing minimize expense while expanding profit is not specific enough. Goals should always include a timeline and measurable metrics, so that success is achievable. Knowing what you want and expect from each segment early will help you decide where to focus your resources once you begin marketing and selling to slices of your customer base.
Do: Shape how visitors interact with your site and products
The whole point of segmentation is to help visitors to your website along their buying journey. Make sure that by applying segmentation to your customers’ online experience, you are guiding each to their best product or solution. Then take one step further and offer them the perfect add-ons or upgrades. If you’re not suggesting solutions to the needs they haven’t even discovered yet, you are likely missing opportunities.
Do: Reflect on the insights gained from segmentation
Okay, we’ve jumped ahead a bit here. But once you have decided on your segments and have redesigned your e-Commerce site to reflect that, your job isn’t done. There will be tons of data ripe for the picking on the buying behaviors (or lack thereof) available, if only you take advantage of it. Collect the right data, and then use it to identify your most and least profitable segments. Which portion of your customer base has the most untapped potential for growth?
DON’T: Let segmentation be an afterthought.
In for a penny, in for a pound. Take the time and do the research to ensure each segment has its own clear-cut and unique definition. You may end up with segments that have similar needs, but if the reason they need that item is completely different, or if they’re going to use it for completely different reasons, then each will interact with your site differently. Whether that difference is a positive or a negative is up to you.
Segmentation can and should result in a better, more personalized experience for your customers and in an invaluable source of detailed information about your customers’ buying habits by segment. By executing the division with care and precision, you and your customers will both end up with more of what you want—smooth transactions and happy buyers.