The continuing rise of big data provides retail marketers with seemingly infinite ways to segment their customers at a micro level, and to target their campaigns and messaging accordingly.
By getting too granular, however, marketers risk missing the bigger picture: behavioral trends that separate—and, in some cases, unify—the bargain hunters, decisive in-and-out buyers and impulsive window shoppers. A new study from HookLogic, "Target Your Online Shoppers More Effectively," drills deeply into three "mega-segments" to reveal segmentation tips that marketers can't afford to ignore.
"Today your customers are really your only source of competitive advantage, and those customers have more choices than they've ever had before," said Forrester Research analyst Emily Collins. By leveraging customer data, you can ensure that your in-site navigation, promotions and follow-up campaigns are tailored to each mega-segment.
The two dominant mega-segments are the careful shopper who conduct exhaustive research before making a purchase (46 percent of consumers) and the efficient shopper who isn't particularly swayed by deals and coupons (41 percent). The remaining 13 percent identified as "window shoppers."
Savvy marketers have always played to customer aspirations, but segmentation empowers brands to break away from a uniform approach to their prospects. As the report details, each mega-segment has its own distinct online shopping process. Concise descriptions and streamlined navigation may be essential for speed shoppers, but the same approach can have a negative revenue impact on deliberative customers who'd prefer to see all their options on the table.
As for when a sale is made, the study found that the same promotional campaign can have dramatically different results across the categories. For example, while research-oriented customers are likely to be influenced by related items and future incentives, efficiency-driven customers would rather stay focused on the benefits of the product they're purchasing.
It's important to note that consumers don't stay rooted in one mega-segment forever. A customer's pre-purchase behavior for a new dress may be completely different than her pre-purchase behavior for a computer. "Target Your Online Shoppers More Effectively" helps marketers recognize how behavior shifts across key verticals, including health and beauty, clothing and electronics.
Read HookLogic's "Target Your Online Shoppers More Effectively" and start turning online browsing into online buying: