Segmentation

Why Is Segmentation Important In eCommerce?

It encourages loyalty and ultimately increases conversion rates. In a competitive online environment, especially if we are talking about marketplaces, it helps to stand out and find a good fit for user needs.

Customer Segments Examples

Rely on these customer segmentation examples :

• Generation (millennials, Gen-Z);
• Geography (“Valid if purchased within the Sydney CBD area”);
• Life phase (new parents or retirees);
• Occupation (health tech programming specialists);
• Income level (luxury brands);
• Marital status (singles or married couples);
• Family size (families with multiple children);
• Hobbies/Interests (a subscription box for gardening enthusiasts);
• Fitness level (a workout app with plans for beginners or advanced athletes);
• Tech-savviness (less tech-savvy individuals).

Make it a principle to gather customer segmentation data and analyze it, improving the upcoming campaign.

The Benefits Of Customer Segmentation

It is easier for people to like and choose you because they feel understood, safe, and valued. They recommend you within their circle and come back to purchase more. You help users not waste time on myriads of offers, and turn gratitude into revenue.

Customer Segmentation Models

• Psychographic — attitudes, principles, interests, values. E.g.: Selling eco-friendly products to environmentally-conscious people;
• Behavioral — habits, product usage, or brand loyalty. E.g.: Offering discounts for returning clients;
• Needs-based — wishes, pain points. E.g.: Promoting meal delivery services to busy professionals who lack time for meal preparation;
• Benefit — advantages clients are looking for. E.g.: Advertising a phone with a strong battery to consumers who prioritize extended usage;
• Value-based — perceived value or willingness to pay. E.g.: Offering premium subscriptions for high-value prospects seeking enhanced features.