Author: Franz Malten Buemann

 

 

Hypersegmentation in eCommerce is a trend that is likely to dominate the market for a long time. 1:1 segmentation allows you to create customized offers for each recipient on a massive scale. This has an impact on both in-store revenue and CLV of its customers. How exactly can you apply hyper-personalization to different types of eCommerce? Here are 5 examples of super advanced and turbo effective segmentations.

 

We’ve known about the need for segmentation in online businesses for quite some time. Research shows that 80% of consumers are more likely to purchase from brands that offer personalized experiences. Segmentation leads to 3 to 5% increase in returns on promoted sales. Surprisingly, a whopping 42% of marketers don’t segment and only 4% segment with multiple data types.

 

Segmentation v Hypersegmentation

 

Hypersegmentation is, to quote Capgemini’s definition, the advanced and real-time customization of offers, content, and customer experiences on an individual level. How is this different from simple segmentation? Segmentation as we know it typically involves dividing a larger audience into small groups of people who have something in common. Hypersegmentation goes beyond simple criteria and rigid segmentation frameworks. It focuses more on creating ultra-accurate, sometimes even single-person segments that match the needs of your audience in real time.

 

Source: Capgemini Consulting

 

As such, it allows for a shift in marketing perspective. Instead of preparing a rigid framework and waiting for people to fit into it, marketers can follow and flexibly adapt to consumers’ needs in the marketing version of „here and now.”

 

For more on hypersegmentation, read:

Top 10 mind-blowing statistics about hyper-segmentation you have to know in 2021>>

[New Feature] AI, no-code Hyper Segmentation>>

 

5 super advanced segmentations for 5 different eCommerces

 

The world of eCommerce is beautiful and diverse. Each branch has its own specifics and its own way of approaching customers. What works well for a pet store (repetitive purchases from a similar category, returning customers) may no longer be good for a DIY store (larger purchases, often one-offs). Therefore, your segmentation system will vary depending on your brand, assortment, industry and many other factors. Below you will find an overview of 5 very effective segmentations for different eCommerces.

 

Example #1 For online pharmacy

 

Disclaimer: I will refer to the Polish market of online pharmacies. The law regulations may vary in different countries.

 

Characteristics: Pharmacies, including online pharmacies, are subject to marketing restrictions. In Poland, these restrictions are regulated by pharmaceutical law. As a result, online pharmacies have severely limited opportunities for paid promotion. The content presented can be either educational or informational. Therefore, a strong emphasis in online pharmacy promotion is placed on SEO content, content marketing, social media activities and community building around the brand. Additionally, in Poland, prescription drugs can be sold online, but they can only be picked up at a stationary pharmacy.

 

Fun fact: Those who buy pharmaceutical products online are more often women (41 percent of them indicated buying this type of goods compared to 27 percent of indications among men), people over 50 years old (44 percent compared to 16 percent for the 15-24 age group) and with higher education (46 percent compared to 21 percent among people with lower education) – according to the Gemius report “eCommerce in Poland”.

 

Segment: Woman from Krakow who have spent a minimum of 500 PLN (110 €) in the last 3 months

 

Targeting groups with a high probability of purchase is the essence of hypersegmentation. Additionally, gathering information that can be used in legally permitted marketing efforts is a perfectly appropriate practice. What’s more, RFM segmentation data can be used to navigate towards micro-conversions within segments.

 

Uses data from areas such as: 

 

RFM
transaction analysis
geolocation data (declarative or from GPS)
gender detection

 

It is effective because: When it comes to pharmacies, gender recognition is of twofold importance. First, women are more likely to buy pharmaceuticals in online pharmacies. Often they buy them not only for themselves – in many Polish families it is women who play a nursing role and it is them who buy pharmaceuticals for children, partners or seniors.

 

Secondly, many products are designed for ailments related to biological sex, and a considerable number of preparations are also related to gender.

 

Location is useful if you have stationary points where you can pick up prescription drugs. On the other hand, information on the amount spent on medicines (especially when compared to average spending per individual – 313.8 PLN, or about 69 €*) places this person in the segment of high-spenders.

 

Making a purchase within the last 3 months is also a clue. Supplements and pharmaceuticals are products that are used regularly. So the segment will include active customers who have purchased products for a fairly high sum and have been using them for some time.

 

Actions: This portion of information is an excellent foundation for performing a variety of marketing activities, even with legal restrictions. These will include:

 

a campaign informing about the possibility of shopping at a physical location in a given city,
progressive profiling (collecting information about ailments),
content marketing activities combined with SEO based on interests,
educational lead nurturing,
post-visit remarketing (dynamic emails),
cross-selling.

 

What’s next? The categories of selected products are worth noting for further segmentation. This will help both in selecting appropriate educational cycles and designing content that may prove interesting for this group of recipients. Another behavior worth investigating is cross-channel attribution and last click attribution. It may help in further distribution of content to similar female customers.

 

Example #2 For Home & Garden eCommerce

 

Characteristics: The Home & Garden and DYI industries have specific buying patterns. In case of professionals, purchases are frequent, large and highly seasonal; in case of amateurs and people renovating their own living spaces, purchases are infrequent, often one-offs with a high up-selling potential. Thus, it is important to identify buyers’ needs well and to divide them into segments, within which further groups can be distinguished. 

 

DIY stores offer a wide range of products of various brands and price ranges. You should take care of loyalty and good consumer experience. There is a chance that for the next bigger purchase they will choose a store that provides them with a lot of convenience and a good offer.

 

Segment: Users who buy once a year for low amounts mainly in brick-and-mortar stores but visit the website often, interested in products from the category Roofs

 

People who visit the site but buy stationary often look for inspiration and the best bargains online. Sometimes they perceive the world more kinesthetically than others. There is nothing wrong with that. Instead of changing their behavior, just embrace this shopping model and focus on building their loyalty among this segment.

 

Uses data from areas such as: 

 

RFM
segmentation rules
transaction analysis

 

It is effective because: People who make small purchases once in a while can actually become regular, paying customers. They already trust your store, sometimes they just need encouragement and guidance.

 

Actions: Identifying people who are likely to become returning, loyal customers with a high CLV is half the battle. There is a whole list of activities that can help in this process. It includes, but is not limited to:

 

implementation of a loyalty program,
implementation of progressive discounts (depending on the frequency of purchases),
preparation of campaigns with recommendations based on interests,
sending an educational cycle for people interested in the Roofs and related categories.
Launching an automatic win-back scenario,
Building a scoring model based on activity.

 

What’s next? Harness your knowledge of a particular customer’s interest category so you can add cross-selling and upselling to your efforts. AI and Machine Learning-based recommendations along with predictions on communication channel and purchase probability can be helpful. Systematic, consistent education and following changes in customer behavior should have the desired effect of increasing loyalty and CLV. It’s also a good idea to track in-store conversions, which a loyalty program and customer card can help with. Offline purchases can then be exported to the system as external events.

 

Example #3 For FMCG eCommerce

 

Characteristics: Online hypermarkets offer, like their offline counterparts, rapidly consumable products. Shopping in such places is characterized by high repetition and regularity. Very often customers keep buying the same products over and over again. This does not mean, however, that target groups are not evolving. Often online shoppers are willing to try new products from their favorite categories or add products from weekly deals to their shopping carts.

 

Segment: Woman in her mid-30s, buying frequently for small sums, with no mobile app installed

 

Just because someone buys little doesn’t mean they aren’t a good customer. Sometimes such frequent “small amounts” can guarantee steady income at quite a decent level. What’s more, this type of buying is compatible with the FMCG industry, which offers products that need to be constantly restocked in the household.

 

Uses data from areas such as: 

 

transaction analysis
segmentation rules
RFM
SALESmanago Mobile

 

It is effective because: Segmenting audience groups by frequency of purchase and amount spent (RFM) has a proven track record of high effectiveness. Additionally, it allows you to move individuals between segments to those who spend the most on a monthly, quarterly and annual basis. It is worthwhile to regularly check which group fits these criteria and develop strategies to move as many people there as possible.

 

Actions: Depending on which RFM segment is most profitable for your store, it makes sense to consider how you can move that customer to a more profitable group. At the same time, it is a good idea to take care of their comfort level by taking into account their current habits. To this end, you can use:

 

loyalty program,
progressive discounts,
upselling,
activities aimed at micro-conversions in RFM segments.

 

What’s next? If it’s profitable for the customer to remain in the segment, you should reinforce that customer’s shopping habits. However, if small changes will make her part of a more profitable segment, it is worth preparing scenarios aimed at modifying her purchase behavior, e.g. increasing shopping frequency or cart value.

 

Upselling and purchase reminders at regular intervals are good practices to follow. You can also include an incentive like a progressive discount.

 

Additionally, encourage the customer to install the app and join the loyalty program, if only to complete her profile with a new set of behavioral-transactional data.

 

Example #4 For eCommerce with kids’ products

 

Characteristics: Children grow and use up products quickly. Moreover, children’s stores are subject to seasonal changes. They are associated with weather changes that force different behaviors. Therefore, these stores are characterized by high dynamics of change, which requires very precise targeting.

 

Segment: A woman, mother of two boys aged 3-5, who shops most often on a mobile app, who has not added any products to her cart in 3 months despite regular visits to the app

 

When a baby store offers products for children of all ages, parents often bond with the store for years. Keeping up with a child’s growth and needs is key to maintaining good, long-term relationships with shoppers.

 

Uses data from areas such as: 

 

segmentation rules
RFM
SALESmanago Mobile
declarative data

 

It is effective because: The first and most important information is the one concerning the age of children. Psychomotor development is very much connected with it. It will influence both the toys, books as well as the clothes and accessories chosen by the parent.

 

Information about the gender of children will be important in the case of parents who select one type of toys and clothes for girls and another for boys (not everyone does it, but it is quite common practice).

 

The fact that the customer is active in the app and frequently buys from it (although not recently) suggests that there has been a change in her life. Before the customer goes off the radar for good, it’s worth running a campaign to get her to buy again.

 

Actions: There are a number of activities that can help you win the customer back. Among them, it is worth mentioning: 

 

win-back,
funnel-based segmentation,
inactivity alerts,
Web and mobile application personalization.

 

What’s next? Lack of purchase activity despite visiting the app can mean many things – from changes caused by boys growing up, to a shift in living situation, to a temporary store switch caused by a competitor’s sale. Observe the effectiveness of your win back campaign and run it comprehensively, across different channels.

 

Example #5 For pet store eCommerce

 

Characteristics: Pet stores have a very clearly divided assortment (animal species) and an extensive category tree (food, grooming, accessories, etc.). The same products are often purchased at similar intervals (food, supplements, grooming supplies).

 

Segment: Users subscribed to the newsletter who bought a product(s) for their dog for the first time

 

Every adventure starts somewhere. Hence, as the first segment, I suggest first-time shoppers who have purchased for their pet and subscribed to the newsletter.

 

Uses data from areas such as: 

 

transaction analysis
segmentation rules
available communication channel

 

It is effective because: Those who have made a purchase and signed up for the newsletter have already taken the first steps leading to a relationship with the brand. Additionally, they have also provided general information about their pet. This is a good starting point for completing more detailed Zero- and First-party data and also for starting the lead nurturing cycle.

 

Actions: Such a segment can be used to launch the following activities:

 

upselling,
progressive profiling (gathering information about the dog’s breed, weight, age, etc.)
lead nurturing (proper care of the dog),
tailored product recommendations on the website.

 

What’s next? Gaining more and more detailed information about customers and their pets allows you to tailor your content and offers even better. Consider implementing loyalty programs and subscriptions, e.g. for pet food, for regular customers and run activities based on the specifics of taking care of a particular animal (taking into account its size, reaction to changes in seasons, life expectancy and changing needs). This could be the basis for expanding hyper-personalization, where the end result would be directing the message not only to owners of large dogs, but directly to Mark, the caretaker of a 30-kilogram young Golden Retriever Cheerio, or Sophie, the caretaker of a 73-kilogram St. Bernard Daisy who is about to give birth to puppies.

 

Effective segmentation in eCommerce – a few words to conclude

 

To effectively segment customers in eCommerce you do not need advanced technical knowledge. A key part of the process is to precisely define the goal, identify the characteristics of the recipient group and to correctly select the segmentation criteria. Predefined segments, the use of AI and prediction can help you experiment with audience groups and create advanced and highly effective segments tailored to the nature of any eCommerce.

 

If you want to work on segments in your eCommerce, take SALESmanago for a 30-day test drive.

 

Be sure to share the results of your experiments in the comments!

 

*According to a survey conducted by the BioStat® Research and Development Centre, in February 2020 an average Polish household spent around 273 PLN on drugs, supplements and other medicines. According to the Central Statistical Office, the average household in Poland at that time consisted of 2.61 persons. 273 PLN/2.61=104.6 PLN. Over a time horizon of 3 months, the average spending on drugs per person is therefore 104.6 PLN*3=313.8 PLN

You’ve launched your business and, with it, your website. Now you want to start driving more traffic to your site and build your brand salience.
You’ve likely heard of that popular and mystical tool — search engine optimization (SEO). And I’m willing to bet you’ve discovered that having good links to your site is one of the top three factors that will increase your page rank on search results.
So now you just need to get a bunch of backlinks out there, right? Easy enough.
Depending on your industry, scaling your linking efforts sufficiently to meet or beat the competition can be challenging, especially if you work for a small or medium-sized business (SMB).
Perhaps your competitors are industry giants with far more financial resources and personnel than you. Perhaps their size isn’t the issue, but they have found ways to generate a prodigious amount of links every month. So you may be tempted to generate as many links as you can, no matter where or how.
But wait. It turns out that not all links are created equal. And focusing on link quantity rather than link quality can hurt you more than it helps. So you need to learn how to create high-quality backlinks at scale.
Here are a few tips for building a portfolio of high-quality links to your site that will improve your business’s visibility.

How to Create High-Quality Content Worthy of Backlinks
There’s an old saying that “Content is king”, and it remains as true today as when it was first uttered by none other than Bill Gates.
But, just as with your backlinks, content must be high-quality to make a difference. And that means that your website must have relevant, authoritative and engaging content to make it worthy of backlinks.

The better your content, the more likely you will generate organic links rather than having to create your own backlinks.

For SMBs that have neither the time nor the personnel to build useful content internally, there is a cost-effective solution: freelance content writers. Of course, freelance writers do come with costs. Indeed, you can expect to pay as much as $45 an hour or more for highly experienced, quality content creators. However, experienced freelancers are a good investment, as they are extremely efficient, and you can often get useful content quickly.
1. Create Relevant Content
When creating content, think about its probable lifespan. Content about an issue that will fade from your audience’s consciousness quickly will have limited effect on your backlinking strategy. So, you should take into account how long your content will remain relevant to your prospective audience.
Can you easily update content to reflect changes rather than simply letting the content expire? Updating content reinforces your expertise and is a simple way to create new content with little added effort.
As a general rule, you should review your content frequently to make sure that it remains relevant or valuable and repair or replace broken links.
2. Become an Authority on a Business-relevant Topic
It’s a simple fact that people like to cite experts. Authoritative, well-crafted content sets you up as an expert in your field. Other writers will create more organic links to your content, and you may even get opportunities to insert quotes into different pieces, allowing you more opportunities to build backlinks.
Building relationships also helps build your expertise. Working with reporters or industry organizations can reinforce your status, and when the time comes that they need a source to cite, they can call you.
Never underestimate connections within your own company, as these relationships help you extend your reputation. They also keep you informed about company activities that may serve as unexpected linking opportunities.
Protect your reputation and the effectiveness of your backlinking strategy by monitoring who links to your content. Links from less reputable sites or, worse yet, from spam sites will hurt all of your efforts.
3. Use Visuals or Videos in Your Content
The attention span of the average internet user is relatively short and getting shorter all the time. So your content needs to grab their attention. And that means using visual hooks to catch the reader’s eye and break up the monotony of long pages of text.
Images, infographics, and videos create reader engagement with your content, increasing the likelihood that they will follow your backlink cues. Well-crafted images also draw the reader further in by providing them with summaries and overviews of your content. But choose your visuals carefully: Stock photos, for instance, will be much less impactful than unique images that directly relate to the material.
Because you will want the same from others who link to your content, make sure to properly attribute the sources of any images or video you use from other sources.
4. Reuse Your Content
No matter how you created your content, you invested resources to do so: researching, writing, creating graphics, and more. Make the most of those resources by repurposing your existing content. It is infinitely less costly and time-consuming to modify content for other uses than to create entirely new content from scratch.
There are many ways to reuse your existing content. For example, did your research uncover data that you didn’t use but could be helpful for another piece? Could you take a slightly different approach to an issue building on what you have already created? Did you produce graphics that you can post on your social media accounts? 
Keep in mind that repurposing content does not mean just dumping the same piece in several locations. You still need to create unique, high-quality content that is more than a verbatim repetition of existing content. But you can certainly increase your efficiency and speed of content creation by leveraging your existing efforts.
Yes, SEO Matters
For high-scale quality backlinking endeavors, the more you know about SEO, the better. Most search results are never clicked, and the likelihood that a user will click through to your page if you are not in the top three search results is negligible.
However, if you can manage to get in the top three positions, your odds increase drastically. The top result will get clicked 30% of the time, compared to 15% for the second and 10% for the third.
Keywords are still an essential tool for increasing your page rankings when they are properly used. And as you increase your page rank by incorporating frequently used keywords, you increase the likelihood that others will create links to your content.
While not directly tied to scaling your linking efforts, you should ensure that you have properly secured your site. Site security is always an essential task for any business to maintain the business’s reputation and client base. And because cybercriminals are now using company SEO efforts as an attack vector, as you scale up your backlinking efforts, you must remain vigilant for attempted exploits.
Building an effective linking strategy involves more than just getting as many links as you can from anywhere at any time. It requires the thought and effort necessary to create content people will see as worthy of their links. But the businesses that make the investment in high-quality content will find it pays off.

Welcome to Breaking the Blueprint — a new blog series that dives into the unique business challenges and opportunities of Black business owners and entrepreneurs. Learn how they’ve grown or scaled their businesses, explored entrepreneurial ventures within their companies, or created side hustles, and how their stories can inspire and inform your own success.
Leadership is comprised of a combination of skills business leaders leverage to lead entire companies.
Whether you’re the VP of Marketing or informally viewed as a leader within your team, it’s vital as a leader that you know how to help others achieve a common goal.
Here, we asked Black business leaders across a variety of industries what they’ve learned about leading a Black-owned business. Keep reading to learn what they had to say.

1. Know Your Numbers
“Know your numbers,” says Kimberly Bryant (@6Gems), Founder & CEO of Black Girls Code, whose mission centers around a very big number: Empowering 1 million young women of color, ages 7-17, “to become innovators in STEM fields”, by 2040.

Knowing your numbers is key to measuring the growth of your business and securing investments.

Bryant recommends “[understand] your reach, customer conversion metrics, revenues, and expenses front to back.”
Hiring a professional is also highly recommended, but doesn’t negate a business leader’s responsibility to “understand the intricacies of your business finances. This will help you lead and drive your organization forward through storms and triumphs.”
2. Strengthen Emotional Intelligence
During the growing pains of any business, it becomes increasingly important for leaders to manage their emotions.
“Emotional intelligence will make or break your leadership journey with your team and clients,” says Sherrell Dorsey (@sherrell_dorsey), founder of TP Insights, a newsletter on Black founders and innovations that has grown into investigating and reporting on Black tech trends, stories, and breaking news.
Black business owners are subject to harsh and even humiliating experiences fueled by racism and sexism on top of the everyday challenges of building a business.
When the work gets frustrating and tempers run hot, Dorsey cautions, “It’s a life-long journey to learn the art of mastering ourselves to navigate challenging times and lead when we feel the weight of the world, but exercising that EQ muscle will shape our forward trajectories when we invest in it frequently and ruthlessly.”
The Harvard Business review backs this up, with emotional intelligence accounting for “nearly 90 percent of what sets high performers apart from peers with similar technical skills and knowledge.”
3. Practice Self-Care
One way to build emotional intelligence is through self-care — as the common saying goes, “Always put on your own oxygen mask first.”

As a long-time serial entrepreneur and industry leader, Wayne Sutton (@WayneSutton), founder of The Icon Project — a company that addresses mental health and professional development needs for Black & Brown men in the tech industry — says, “You need to practice self-care to be emotionally prepared to lead others,” says Sutton.
It’s hard to show up for others when you’re struggling to show up for yourself. All too often, this can lead to stress, exhaustion and burnout. Take the time for yourself in order to excel as a leader.
4. Be Relentless … With Your Calendar
André Blackman (@mindofandre), is the Founder & CEO of Onboard Health, a specialized executive search and talent advisory firm dedicated to building an equitable future of health. Backman encourages being “relentless with your calendar around creating buffer/space for thinking.”
Time is a precious resource we can never keep or replenish. Which is why it’s important to know where your time is going and to make time for yourself. To make sound decisions, leaders need space for reflection and deep thinking. That’s hard to do on a full schedule.
“While tackling fires, writing emails, and providing customer or client results are sometimes necessary, having time for yourself to process and look ahead is essential,” urges Blackman.

5. Ask Big, Bold & Expansive Questions
Tony Robbins once said, “The quality of your questions determine the quality of your life and business.” This quote rings true for Felecia Hatcher (@FeleciaHatcher), co-founder of the Center for Black Innovation, a research think tank building equitable pathways to rid Black communities of innovation deserts.
Hatcher is no stranger to both asking and receiving big, bold questions. This is why she encourages Black business leaders to get into the habit of doing the same with their team — and themselves.
“We must ask big, bold and expansive questions to ourselves and the people around us.” From these questions can emerge “insights [that] will help inform your best next moves.”

You may be the leader, but you don’t have all the answers. By asking “big, bold, and expansive questions”, you can find the possibilities with your team.
Leadership starts with taking care of yourself, your team, and the business as a whole. The lessons in leadership these Black-owned business leaders have shared is just the tip of the iceberg and a great starting point for others to apply right now. Practicing these tips now can improve your leadership for the long run.

submitted by /u/marilynsmith521 [link] [comments]

submitted by /u/Tattynurmi [link] [comments]