The Fast Lane
Discover the world of AI-driven shopping optimization and fast-track your way to increased conversion rates, AOV, and customer loyalty. Explore expert insights on e-commerce personalization, merchandising, site search, and more.
Marketing3 Customer Segmentation Strategies to Grow Your eCommerce BusinessAccording to a Redpoint Global study, 64% of consumers prefer purchasing a product from a brand that knows them, and 34% say they would spend more on that brand. This means that if you implement customer segmentation strategies carefully, it can help you grow your eCommerce business. By dividing your customers into demographic, behavioral, or psychographic segmentation, you'll have a deeper understanding of your customers' preferences and behaviors, which in turn can lead to increased sales and customer satisfaction. What Is Customer Segmentation? Customer segmentation is the process of dividing your customers into groups based on shared characteristics, such as demographics, behaviors, and psychographics. This way, you can create audience segments and use tailored strategies that are more effective at reaching and engaging your target audience. The process typically involves several steps: Collecting customer data through surveys, tracking website behavior and purchase history, and analyzing customer reviews.Performing a statistical data analysis through machine learning or AI to identify distinct customer groups and create unique segments.Creating targeted marketing strategies with product offerings designed to appeal to each segment's unique interests and needs. » Find out effective ways eCommerce personalization helps your business 1. Demographic Segmentation Demographic segmentation groups customers based on similar demographic factors such as age, gender, income, location, and more. When using this strategy, you can start by collecting data through customer surveys and website analytics like Google Analytics or your Shopify Dashboard. This can help identify specific trends and preferences. Depending on the segment, you should consider different aspects to improve your approach: Age: Different age groups have different purchasing habits and needs.Gender: You can use personalization to create targeted, gender-specific marketing campaigns based on need and desire.Income: Matching your product offerings to your target audience's income bracket can help improve sales. For instance, if your customers are in a higher bracket, you might offer luxury products and emphasize product exclusivity and quality.Location: You can create campaigns that cater to customers' unique needs in different regions. For example, an eCommerce store selling winter jackets can create targeted marketing campaigns for customers living in cold areas. Bright Minds: Age is Not Just a Number Bright Minds, a toys and books store, leverages demographic segmentation visually based on different age groups. Since the majority of the products are for children, dividing them up into age-appropriate groups helps for more seamless browsing. This can boost customer confidence and satisfaction with the store, which can improve sales. 2. Behavioral Segmentation Behavioral segmentation allows you to create targeted campaigns and personalized experiences by grouping customers based on patterns such as their purchasing habits, browsing behavior, and customer loyalty. Some ways to optimize this strategy include: Analyzing purchase history This can help identify which products or categories are popular, which customers make frequent purchases, and which customers have a high average order value.Tracking customer purchase journey Customer browsing behavior can indicate which products or categories customers are interested in but have not purchased. This data can be used to create retargeting campaigns.Measuring customer loyalty You can track how frequently customers make purchases, how long they've shopped with you, and their general engagement with loyalty programs. This can also help you identify and tackle hiccups that bust brand loyalty. Fragrance Buy: Smells Like Loyalty Fragrance Buy, a beauty and cosmetics store, offers an extensive loyalty program. This includes: Earning points, which they call "sprays".Multiple integrated ways of earning points through referrals and social media.An array of point redemption options, from free shipping to discounts. Social media inclusion can increase reach and customer engagement across multiple channels, which can translate into more sales and customer loyalty. The business's strategy is effective since businesses that leverage loyalty and rewards programs tend to generate revenues around 2.5 times faster than those that don't. Plus, VIP tiers further instill a sense of reward for customers, as the tier doesn't downgrade once you've achieved it. » Learn about the convergence between AI, eCommerce, and an optimized experience 3. Psychographic Segmentation Psychographic segmentation divides customers into groups based on their personality traits, values, interests, and lifestyles. This strategy can help you understand your customers' intent and preferences even better. Then you can create more effective marketing campaigns and improve your overall site search experience. Here are some tips to consider with this method: Conduct surveys and focus groups to gain insights into customers' personality traits, values, and interests.Analyze social media data to understand customers' lifestyles and interests.Create customer personas based on psychographic characteristics to better target marketing efforts. Princess Polly: Live That Influencer Lifestyle Princess Polly, an online fashion business, curates clothing and accessories that lean into lifestyle preferences, particularly those of online influencers. The store strives to deliver "key seasonal trends to fashion-obsessed Millennials", so they tap into this market's psychology by letting their customers shop according to influencers. Customers can easily browse products recommended by their favorite influencers, allowing them to effortlessly emulate the lifestyle they want. This then also doubles as social proof. The Fast Way to Grow Your eCommerce Business In eCommerce, customer segmentation allows you to understand and engage with your customers more meaningfully. By identifying commonalities among different groups and creating targeted marketing campaigns that speak directly to their interests, you can improve sales and customer satisfaction. Customer segmentation can also highlight your attention to consumer needs and preferences, which can improve long-lasting customer relationships. » Need to optimize? See these top eCommerce apps to optimize customer experience
Marketing4 Ways Social Media Marketing Drives Consumer BehaviorSocial media marketing, or social commerce, has the potential to drive consumer behavior thanks to the growing number of active users. According to DataReportal, around 4.76 billion people worldwide use social media. By using the right social media channels, you can create an emotional connection with your customers to influence and encourage purchases and brand loyalty. To help you tap into this potential, here are four strategies you can try. 1. Make Consumers Aware of Your Brand Social media can help foster brand awareness and increase visibility across multiple platforms and through various online formats. However, the intense competition for attention can make it tough to get noticed. Some options include: Leverage Influencer Marketing Social media influencers can help boost brand exposure and promote your business. Try to identify influencers that match your niche audience and leverage their creativity and authenticity to grow your brand. For example, the fashion brand Princess Polly partners with influencers on Instagram to promote their products. By featuring the brand's products in curated looks and sharing them with their followers, these influencers can help increase Princess Polly's brand awareness and attract new customers. Launch Hashtag Campaigns Hashtags are another effective way to drive brand awareness via social media. Use a combination of popular, trend-based, and niche-based hashtags to maximize the visual discovery of your content. For instance, premiere shopping and lifestyle brand CURATEUR uses hashtags that can help create a brand identity that's easy to discover online. Ensuring your content is easy to find across platforms can help boost reach and sales. » Check out the top eCommerce apps to optimize customer experience Create Viral Content Creating viral content like videos or memes can generate significant buzz around your brand. When content is shared by thousands, if not millions, globally, it has the potential to increase brand exposure and recognition. BarkBox, a dog products subscription service, regularly shares animal-related memes on its social media pages, creating a strong brand identity and keeping its followers engaged. 2. Influence Consumers' Purchasing Decisions Social media can play a crucial role in swaying customers' preferences toward a particular product or brand. By offering product information and social proof, brands can create a more informed and confident buyer. Consider the following strategies: Display Customer Reviews & Ratings Potential customers can read real feedback from others who have already purchased the product. This can create a sense of trust and credibility and lead to increased conversion rates. For example, the handmade jewelry brand Made by Mary frequently features customer photos and reviews on its Instagram page, showcasing its products in a relatable way. Offer Exclusive Discounts Offering exclusive discounts or promo codes to social media followers can be a powerful motivator for purchase. By providing value to the audience, brands can increase engagement and loyalty. For instance, fashion brand Steve Madden uses Twitter to promote exclusive discount codes for its followers, creating a sense of urgency and excitement among them. » Looking to try AI? Learn how AI can improve conversion rates in eCommerce 3. Build Brand Loyalty Among Consumers Brand loyalty is a key driver of profitability. Customers who exhibit loyalty choose your products or services repeatedly and also advocate for your brand, often recommending it to others. Here are three strategies to help you build brand loyalty: Create Personalized Content Personalization can demonstrate an understanding of customers' unique needs and preferences. Brands can personalize content by collecting data, such as: DemographicsInterestsOnline browsing behaviors Stitch Fix, an online personal styling service, collects data on its customers' preferences, style, and fit and then uses it to provide personalized clothing recommendations and styling advice. This personalized experience helps build long-lasting customer relationships. » Find out why product recommendations need merchandising Reward Loyal Customers Offering exclusive discounts, early product access, or special promotions are some effective ways to show appreciation for loyalty. For example, Fragrance Buy, an online fragrance retailer, gives its loyal customers points ("sprays") for specific actions they complete, which can be redeemed for discounts on future purchases. This gives customers a sense of exclusivity and encourages them to continue shopping with the brand. Increase Direct Online Engagement Social media engagement boosts loyalty by making customers feel valued and heard. Brands that respond to comments and feedback show that they care about their customers, fostering trust and appreciation in return. A great example is 401 Games. This game and toy brand offers helpful and friendly responses on Twitter when customers reach out. This can help boost sales as customers feel valued and informed. 4. Encourage User-Generated Content From Consumers User-generated content (UGC) can be highly effective as it adds authenticity and depth to a brand. When existing customers create content about a brand, they humanize it and provide real-world context for products and services. To encourage UGC, consider taking the following steps: Run Social Media Contests & Challenges These campaigns can encourage customers to share visuals of themselves using your products and create a buzz around your brand. Consider using branded hashtags for contests, as they can make it easy for customers to find and share your UGC. Energy drink brand V, for example, asked customers to show their transformation after sipping a V energy drink using the branded hashtag. The brand then featured some of the best UCG on its own Instagram account, highlighting the impact of its product on real people and encouraging others to try it. Share User-Generated Content on Your Own Channels This is a smart way to increase engagement and add social proof to your brand. Woolery, an online fiber arts brand, excels at this strategy. By sharing customer photos on its Instagram story, Woolery diversifies its content and increases engagement because it showcases real people's creations using its products. Plus, by adding these images to a pinned highlight reel, anyone can view it at any time. Get More Insights into Your Consumers' Behavior Using built-in social media tools and metrics, you can gather valuable data on customers to inform your marketing campaigns. Here are a few tactics to try: Analyze social media metrics to track engagement, reach, and other key performance indicators.Conduct surveys or polls on social media to gather feedback from customers.Leverage audience segmentation to create audience groups and tailor social media content according to each group's preferences. By leveraging these strategies, you can enhance the customer experience and get more conversions for your brand. » Discover how to tackle eCommerce hiccups that bust brand loyalty Post and Share the Fast Way With social media, you can engage with your audience quickly and easily. Because customers expect more from the brands they support, including personalization, social media is a flexible platform to accommodate their growing and ever-changing needs. Effective social media marketing strategies can help you achieve better brand awareness, conversions, customer loyalty, and engagement. Leveraging social media creatively can help your brand stand out from competitors and reach more potential customers.
MarketingGet Inspired: 5 Email Remarketing Campaign Ideas That Really WorkDid you know that almost 70% of eCommerce shoppers abandon their carts? But email remarketing campaign ideas can successfully work to fix this and help you get inspired. Also referred to as email retargeting, this strategy involves sending personalized emails to customers and leads who have become inactive. It can be a successful tactic to recover lost sales. For instance, a study shows that cart abandonment emails led to a 24.87% conversion rate. So, let's look at five remarketing email campaign ideas you can try today. 1. Abandoned Cart Reminder An abandoned cart strategy is essential to reeling in shoppers who never finished the checkout process. When you do it right, an abandoned cart email can remind customers of what they're missing and entice them to complete the purchase, increasing your sales and conversions. Here are some tips for crafting an abandoned cart email: Use persuasive copy that shows personality.Leverage email marketing tools like Klaviyo.Include product images.Create a sense of urgency.Give a clear call-to-action (CTA).Send in a timely manner—ideally within 24 hours of abandonment.Include customer reviews for the item(s). Let's look at an example. Food 52 sends a short and sweet abandoned cart reminder. It has a light and casual tone, showing a photo of the item that's in the shopper's cart to remind them of what they were looking at. The CTA button takes them straight to the cart to finish checkout. 2. Win-Back Campaign A win-back campaign is a type of retainment remarketing email that aims to "wake up" and re-engage an inactive customer (typically someone who hasn't made a purchase in 3 to 6 months). These emails usually draw the customer back in with a special offer, promotion, discount, or simply a reminder of what's on offer. If you do it right, you can boost your sales, increase your customer lifetime value (CLV), and improve customer experience. Some tips include: Try sending between 3 to 6 emails, spaced out every 1 to 3 days.Create a sense of urgency for them to act now.Be direct and concise.Offer a clear CTA for their next steps.Use branding and imagery, including product photos. In this example, beauty brand Aillea sends a friendly, broad win-back email to an inactive customer, encouraging them to browse more products. This method can also utilize personalization, as you can use the customer's interests based on previous purchases. 3. Post-Purchase Upsell Upselling is an extremely valuable eCommerce merchandising technique for growing your average order value (AOV) and overall revenue. Post-purchase upselling involves suggesting an "upgrade" from what a customer has just purchased. Your approach should be methodical. In your upsell offer, consider products that are related to the most recent purchase. To send a great post-purchase upsell email, you can use these tactics: Try including the upsell offer in the customer's order confirmation email.Personalize the recommendations based on the user's purchase history.Use a simple, clear CTA.Include discounts and special offers to sweeten the deal.Add social proof for the recommended products, like customer reviews.Include visuals like branding and product images. For instance, viral men's hygiene brand Dollar Shave Club takes advantage of the period right after a purchase, offering to toss more items into the customer's package before it's shipped. » Want to know more? Find out the benefits of upsell and cross-sell personalization 4. Limited-Time Offer A limited-time offer can cover any type of occasion, from a holiday sale to a product launch celebration to a "just because" personalized special offer. The important factor is that you're prominently showcasing the value and the expiring time period of the offer so customers know exactly what to expect. For a strong limited-time offer, check out these tips: Be clear about the offer and how long they have to buy.Use standout graphics and colors to illustrate the offer.Include visuals like branding and product photos.Create a compelling CTA.Personalize the offer to your customer base if possible. In this example, Targus, a computer accessory online store, uses bright CTAs to highlight what the offer is (15% off), where to purchase, and how long the offer is available ("Today"). Also, with a clear copy ("limited edition"), the brand also implies a sense of exclusivity, which can encourage conversion. 5. Product Recommendations With the help of sophisticated algorithms, personalized product recommendations can be tailored to better match shoppers' intent. This strategy uses customer behavior data, like browsing and purchase history, as well as data from other customers with similar habits. Here are some ways to use customer data to fuel product recommendations: Suggest similar products to those already purchased.Show an additional product that's frequently bought together with a recent purchase.Highlight the most popular and best-selling products.Break up the most popular products per specific category.Push top-selling products based on lookalike audience segments.Remarket products recently viewed by the consumer. Take the fashion brand Princess Polly as an example. This brand suggests items that are similar to ones you've viewed or purchased, plus extra items you can purchase to "complete the look". This encourages additional purchases and shows personalized attention, which can help boost retention. » Learn why personalization for large audiences through anonymous data works Fast-Track Your eCommerce Sales If you're trying to find new ways to captivate customers, these email remarketing campaign ideas may be the tools you've been looking for. When you thoughtfully re-engage your current leads and customers who have gone stagnant, you can help create long-lasting relationships. This, in turn, can boost sales, customer retention, and the overall success of your business. So, why not try these ideas?