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ECommerce Segmentation

chrislema
April 05, 2019

ECommerce Segmentation

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

chrislema

April 05, 2019
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Transcript

  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

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  2. Most stores
    track & talk
    averages.

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  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

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  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).

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  5. If you want revenue
    growth, you need to
    get hyper-focused on
    segmentation.

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  6. Everything
    on this
    homepage
    suggests
    they’re
    targeting
    women.
    What
    happens
    when I click
    and browse
    the men’s
    collection?
    Nothing.

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  7. It’s the journey that matters.
    Every step and click that a customer makes tells you something
    about their intention and, more importantly, about themselves.

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  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.

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  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.

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  10. Look for the 5% that will drive
    your revenue growth!
    3X THE NORMAL AOV
    17% OF TOTAL REVENUE
    5% OF CUSTOMERS

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  11. SOME SEGMENTS
    TO CONSIDER

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  12. First Purchasers – customers who have made a single purchase
    Big Spenders – customers whose AOV is in the top 10%
    VIP Shoppers – customers in the top 10% based on their spend
    Most Active Customers – customers who have made 3 or more orders
    (<2% of customers, who bring in 24% of revenue)
    Coupon Lovers – customers who used a coupon for purchases
    Cart Abandoners – people who didn’t finish their transactions

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  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.

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  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.

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  15. With WP Fusion, you can
    tag customers based on
    ordering specific products.
    And with tools like Beaver
    Builder, you can display
    items based on their tags.

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  16. HERE ARE SIX
    THINGS YOU CAN
    DO WITH THESE
    SEGMENTS

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  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.

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  18. How?
    Right
    Message
    Monitoring clickstreams
    is easy with RightMessage
    and allows you to change
    just about anything,
    based on the segment.

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  19. Just a Little Information Helps
    Notice how we can adjust the hero
    image without being explicit.
    Noise Cancelling
    Bluetooth

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  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

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  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.”

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  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/

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  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.

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  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.

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  25. YOUR MOM WAS WRONG:
    YOU SHOULDN’T TREAT
    EVERYONE THE SAME.

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  26. CHRIS LEMA
    LIQUID WEB

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