Why Should You Use Customer Segmentation to Grow a WooCommerce Business

Marketers have long believed that maximum outreach is the best marketing strategy. The more people exposed to your marketing, the more effective it is. The goal is to capture the attention of as many individuals as possible in the hopes that some might become customers. This approach works, up to a point, but wastes plenty of time, effort and resources. Most of the people reached find themselves presented with a product that doesn’t fit what they’re looking for, and so only a tiny percentage become customers.

A highly targeted marketing addresses this key issue, with “customer segmentation” as its backbone. Instead of adopting a “one-size-fits-all” approach, companies group customers into segments with common features. The segments can then be reached via personalized marketing campaigns, increasing campaign effectiveness and reducing marketing costs.

In this blog post, we’ll discuss how using customer segmentation to grow a WooCommerce store can give your business a leg up. We will use Growmatik to practice some of the examples. Growmatik is a Cross-channel Marketing platform for WooCommerce. It collects user data in 3 touchpoints (website content, email and popup), makes segments out of them with 50+ behavioral attributes and then uses them to personalize your marketing content for every segment seamlessly across all 3 channels.

What is customer segmentation?

Customer segmentation involves organizing your customers into categories based on demographics, loyalty, behavior, and other key factors. Separating your customer base into smaller groups allows you to target each group with a more personalized and relevant message and marketing strategy. This ultimately increases customer conversion, which in turn increases the efficiency of your marketing campaigns.

Why are so many professionals onboard about customer segmentation? The answer is simple—it allows you to personalize every step of the customer’s journey. And that personalization pays off.

What are frequently used segmentation factors

A few key customer segmentation strategies can work for any kind of business. Each business interacts with potential customers that share certain traits and can be categorized according to those traits. The most common are as follows:

Demographic: Demographic data includes personal details such as age, company affiliation and gender.

Geographic: Geographic data pinpoints the customer’s location, whether on the country, city, or neighborhood level.

Behavioral: Behavior data catalogs how a customer interacts with your online business, as well as common behavior patterns. This kind of data is essential when examining customer loyalty and engagement.

Why customer segmentation matter?

If you are trying to reduce wasted money and effort in marketing, using customer segmentation to grow a WooCommerce store is a great option for you. By improving the way you target customers, you’ll start to notice your costs decrease even as your performance increases. Some of the main benefits of customer segmentation are as follows:

Make use of the personalization

Personalization is perhaps the number one reason to implement customer segmentation. Every business aims to build a relationship with its customers, but how can that be achieved without learning more about the customers themselves? The info you need can be found via customer segmentation.

Growmatik allows you to utilize customer behavior to personalize your website content, email and pop-ups.

Execute upselling and cross-selling more effectively

Most people don’t enjoy being blatantly targeted by marketing, especially blind marketing campaigns that have little to do with their needs. Marketing campaigns that present customers with related or complementary products that add value to previous purchases, however, can enrich the customer’s experience. Whether it’s a book similar to one they’ve just purchased, or an essential accessory for their new device, customers are much more likely to spend money on something that is relevant to them.

There are countless ways to make the perfect offer, but all the ideas in the world can’t take the place of accurate customer segmentation. Data on your customer’s shopping history, behaviors and activities can all help you create campaigns just for them.

Fully-automated upselling and cross-selling campaigns are all included within the Growmatik framework. Did your customer just buy a new gaming platform? Why not upsell them the best controller for their gaming pleasure?

To do this in Growmatik, go to the People page and use a customer’s purchase history to craft a new segment. Filter for Purchase item, choose the product and save your new segment. On the same page, click Send email to segment. Once you open a new dialog, you’ll notice this new segment is assigned to a condition. Just select Send email as your action to create the rule, and voila!

Drive more ROI

Marketing nowadays is all about being relevant. Making the right offer to the right customer, rather than blanketing the internet with generic advertising, is the key to finding and keeping customers.

No matter how catchy your slogans are, the message you send with generic campaigns may just not be what prospective customers are looking for. Continually bombarding your audience with irrelevant messaging ultimately hurts both your image and customer loyalty.

Alternatively, presenting your customers with relevant offers and personalized messaging can be achieved through segmenting your customer base via behavior and demographics.

Send your most loyal customers an appreciation email – complete with a branded freebie—thanking them for their support. To reactivate inactive customers, try sending them discount coupons to encourage them to come back and buy!

Retain customers more effectively

If you know more about your customer’s behavior and preferences, you can better meet their needs. Over time, using customer segmentation to grow your WooCommerce store will allow you to turn information into an improved customer experience, complete with personalized communication and relevant messaging. All of this will, of course, improve your relationship with customers in the long run.

Many businesses reach their subscribers via a weekly or monthly newsletter, but the content of this messaging tends to be the same for every customer. What if it were possible to send each customer a personalized newsletter, addressing them by name and offering them content based exclusively on their preferences? Chances are, this kind of newsletter would turn a lot more heads.

Unveil market opportunities

Segmentation also allows businesses to identify their ideal target market and concentrate their efforts and resources accordingly. Once the customers and sales data are segmented, however, the business makes a surprising discovery. While some segments are declining in sales, others are steadily growing!

Armed with this new information, the brand can shift its strategy, moving its efforts away from the failing segment to focus on the growing one. Ultimately, refocusing on the ideal target will bring about an improvement in sales and help the company find its market niche.

What are the essential customer segments for WooCommerce?

Customer segmentation to grow a WooCommerce store can involve any of the following groups:

  • High-value customers
  • Cart abandoners
  • Coupon lovers (customers more likely to purchase with coupons)
  • Inactive customers
  • Loyal customers
  • Indecisive customers
  • Newsletter readers

Wrap up

The tools of customer segmentation can help you build this ideal customer-business relationship by helping you provide personalized and relevant content to each and every customer. Every customer wants to be heard!

To properly segment your customer base, you need software like Growmatik that can handle large amounts of data. Growmatik allows you to employ dozens of filters to group your users into segments, and then target those segments with personalized website content and email blasts.

We’d love to hear more about your results with customer segmentation as well. Have you experimented with it? What worked and what didn’t?


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