Customer segmentation methods for targeting your e-commerce audience

Over 80% of global customers have shopped online for at least once. Large enterprises and startups alike, addressing customers for effective e-commerce strategy is far from a one-size-fits-all project. Website visitors can come from a wide range of traffic sources and have vastly different shopping behavior and characteristics.

The top-notch way for an e-commerce business is to boost conversion rates is to build robust and productive relationships with the audience. Using your existing web analytics report, you can segment your customers based on certain criteria to customize the brand experience to their wants, needs, and concerns.

The internet has completely revolutionized the way customers interact with brands. Customers have come to expect a personalized experience, but it's not so easy marketers still have a long way to go.

Customer segmentation allows marketers to define their audience and focus on valuable customers while pitching in distinct prospects. As opposed to creating an effective marketing strategy with a broad application, this customer segmentation can help gear your efforts to specific groups sharing similar characteristics, since narrower targeting leads to more ROI.

Let’s look at some important customer segmentation types to take into account when optimizing your e-commerce platform.

Behavioral Targeting

Behavioral segmentation classifies buyers based on the way they respond to your e-commerce platform. This is a case that requires an in-depth research over time. There can be many factors that come into play when a consumer is making a decision. These factors determine consumers’ individual and collective on-site behavior, which needs to be analyzed. Then customers have to be segmented by their traits, preferences and past behavior. Some of the fundamental forms of behavioral segmentation include:

•    Sought out benefits
  
•    Purchase Occasion
  
•    Product Usage
•     Perceptions and beliefs
•    Brand Loyalty
  

Psychographic Targeting

This concept is based on the interests and opinions of consumers. It jumps into the personality of the customer and customizes the e-commerce platform to the type of person they are. Psychographic segments are some of the most important measures you can use to individualize your marketing strategy and even can even perform a significant part in how you design your e-commerce website.  Breaking customer insights into meaningful groups based on the choices they make are remarkably valuable in determining a message that will resonate with them on a deeper level.

Psychographic segmentation can be divided into a few factors:

•         Lifestyle
  
•         Values
  
•         Personality
  
•         Social Class
  
•         Activity, Interest & Opinion (AIO)
  

E-commerce businesses face a lot of challenges. The good news is that POFI TEC is equipped with a lot of great tools and techniques to analyze customer behavior, segment them neatly. Get a FREE Consultation with our experts.