Segmentation is an easy way to ensure you are sending the right message and promotions to the right people on your list.
We wanted to provide you with a quick list of segments that you can easily create to drive more revenue. Here is a look into five key segments with a visual guide to building each one, along with some suggestions around promotions and purchase data needed for each.
1. High Average Order Value with Low Recency: This segment will help you drive promotions and messaging those big spenders that have not made a purchase recently.
Note: Windsor Circle provides customer scoring for recency, frequency, order values, and more.
2. Free Shipping Segmented Promotions: Don’t give the same shipping promotions to everyone. You can segment using Average Order Value or Average Amount Spent to discover how much to ask each group to purchase before providing free shipping. You can also add this offer to those who have used past free shipping coupons to purchase.
For example you can create two different segments: one for free shipping with a $100 order, and the other offering free shipping with a $50 purchase.
3. Gift Buyers: Use the date range of key gifting holidays and/or add gifting products into segments to find the people to send gift specific promotions and seasonal messaging to. The example below uses gifting date ranges around Christmas, Valentine’s Day and Mother’s Day.
4. High Frequency Buyers with Low Average Orders: This is your segment that you know may not buy much at once but comes back often. Push promotions encouraging small extras and deals with basket size incentives.
This is how it is built, again using customer scoring:
5. Attachment Product Buyers: This is your group that has bought specific products that have a variety of attachments and combo items. An example would be a segment for those who purchased a TV and use promotions for HDMI cables, speakers, entertainment systems, video games, etc.
For more on segmentation we have a number of resources available:
- Top Holiday-Driven Retail Segments Part 1 and Part 2
- The Power of Segmentation
- Guide to Segmenting Your Customers
- 2.7x Revenue from Segmentation