Segmenting your customers is without doubt the key to increase conversion rate and customer lifetime value as well as keeping people engaged in buying your products. Thus, it is important to come up with a suitable customer segmentation strategy for your online business. Take a look at some of the best tips we have to execute an effective customer segmentation strategy:
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1. Follow a clear path
Map down your future business-related objectives, from small ones to broader, more ambitious goals. When you understand clearly what you want and need, your ability to develop and manage segments and strategies will be nurtured. If there is a stagnation of positive feedback from your strategy, you can always look back at your goals and reevaluate your segmentation.
2. Analyze data and experiment
Make sure to keep a record of any key activities from your customer segments, especially how your marketing performs on each group over time. You can analyze the given data and see what particular campaign is showing great influence on a segment and adopt that into your future tactics.
3. Categorize customers applying user status
In order to create stronger engagement between your store and the customers, users are recommended to monitor the customer journey. Being well-informed about user status (lapsed users, loyal users, etc.) will help you design better campaigns targeting a specific segment of people. Although this factor does not have to be a major characteristic, it can be used as a small leverage to make minor improvements in your marketing strategy.
4. Keep it moderate
Some advertisers make the mistake of dividing their audience base into too many groups, creating a cluster of confusion. Do not be too general, but also do not be too specific. Use the “three adjective rule” when you are categorizing: if the segment cannot be described precisely with three adjectives, you are doing it wrong. With just the right customer segmentation strategy, you will be able to draw valuable information and use that to your own advantages.
