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eCommerce Segmentation

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How do use a data-driven approach to optimize your eCommerce store for incredible results.

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eCommerce Segmentation

  1. 1. ECOMMERCE SEGMENTATION How to use a data-driven approach to optimize your eCommerce store for incredible results. Chris Lema, VP of Products, Liquid Web
  2. 2. Most stores track & talk averages.
  3. 3. What it looks like on your store… What it looks like in real life… Purchases: 2,360 Total Revenue: $160,570 Customers: 2,108 Lifetime Value: $76 Avg. Order Value: $68
  4. 4. What if you stepped away from averages? 32 Customers had Average Order Values of $195 (instead of $68). 210 Customers had LTVs of $185 (instead of $76).
  5. 5. If you want revenue growth, you need to get hyper-focused on segmentation.
  6. 6. Everything on this homepage suggests they’re targeting women. What happens when I click and browse the men’s collection? Nothing.
  7. 7. It’s the journey that matters. Everystepandclickthatacustomermakestellsyousomething abouttheirintentionand,moreimportantly,aboutthemselves.
  8. 8. Would you treat someone who comes to an article, then to your product, cart & checkout differently than someone who comes directly to your site, searches, finds and adds product to cart but never checks out? Sure you would. Organic buyers are more valuable than researchers.
  9. 9. The point of segmentation is to figure out not only your various segments but your most profitable ones – so you can target them with better designs & better messaging.
  10. 10. Look for the 5% that will drive your revenue growth! 3X THE NORMAL AOV 17% OF TOTAL REVENUE5% OF CUSTOMERS
  11. 11. SOME SEGMENTS TO CONSIDER
  12. 12. First Purchasers – customerswhohavemadeasinglepurchase Big Spenders – customerswhoseAOVisinthetop10% VIP Shoppers – customersinthetop10%basedontheirspend Most Active Customers – customerswhohavemade3ormoreorders (<2%ofcustomers,whobringin24%ofrevenue) Coupon Lovers – customerswhousedacouponforpurchases Cart Abandoners – peoplewhodidn’tfinishtheirtransactions
  13. 13. We suggest stores check out Glew.io It provides all of these segments (and more) automatically out of the box. Included in our Standard Managed Woo Plans.
  14. 14. With or without Glew, the trick is tagging your customers in an Email/CRM system like ConvertKit, MailChimp, ActiveCampaign or AgileCRM. You can use their integrations, or a solution like WP Fusion.
  15. 15. WithWPFusion,youcan tagcustomersbasedon orderingspecificproducts. AndwithtoolslikeBeaver Builder,youcandisplay itemsbasedontheirtags.
  16. 16. HERE ARE SIX THINGS YOU CAN DO WITH THESE SEGMENTS
  17. 17. Change the homepage based on customer tags or onsite behavior. After browsing the men’s t-shirt collection (3 clicks), the homepage was completely transformed to show me ads and options for men instead of the default women’s selections.
  18. 18. How? Right Message Monitoring clickstreams is easy with RightMessage and allows you to change just about anything, based on the segment.
  19. 19. Just a Little Information Helps Notice how we can adjust the hero image without being explicit. Noise Cancelling Bluetooth
  20. 20. Bring your best products to the top. If a Big Spender or VIP shows up to your store, you could change the sort order easily. /?orderby=price-desc
  21. 21. Introduce “Lite” Pressure People who browse a lot, Researchers, need a little incentive to make a purchase. “60 others are viewing this property right now.” “74% booked. Rooms are selling out fast.”
  22. 22. Deliver Coupons “Just in Time” Customers who are Coupon Lovers can be triggered with coupons based on what they put in their cart, or captured as they’re leaving the store. Check out Ahoy! https://useahoy.com/
  23. 23. Reconnect with Cart Abandoners Everyone tagged as a Cart Abandoner represents free money! Use tools like Jilt to create multi-part campaigns to bring them back. Liquid Web’s Managed WooCommerce plans come with Jilt.
  24. 24. Share the Love w/ Repeat Buyers This is a ConvertKit Automation. It basically monitors purchases and then updates a custom field. When “Total Purchases” is 0 and an order comes in, it changes it to 1. It keeps doing this until it updates to 3. Then it adds a Repeat Buyer tag. That’s when another automation can go out with a special coupon, based on a new tag (Repeat Buyer) being added.
  25. 25. YOUR MOM WAS WRONG: YOU SHOULDN’T TREAT EVERYONE THE SAME.
  26. 26. CHRIS LEMA LIQUID WEB

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