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Don’t Know How To Segment Customers? 6 Customer Segmentation Strategies Only For You!

Team Argoid
By
Team Argoid
• 
3 min
customer segmentation strategies


Planning your marketing strategy, without knowing your customer segments, is like driving a car blindfolded. The ultimate goal of every marketer is to target the right group of audiences, and customer segmentation is the very first step. 

With targeted customer segmentation, eCommerce stores can reach out to customers with similar needs, interests, and pain points. This article will help you understand the 6 eCommerce customer segmentation strategies that marketers must know! 

Let’s dive in! 

What is eCommerce Segmentation? 

Customer segmentation in eCommerce is quite simple to understand. It is about dividing your customers into groups based on their preferences, needs, pain points, and expectations. Having dedicated customer groups will make it easier to plan marketing strategies and campaigns that resonate with the customers’ needs. 

Even a few years ago, the concept of eCommerce customer segmentation was absent. Businesses would aimlessly market their products and services to anyone and everyone. The result was poor customer acquisition. Most promotional emails would be irrelevant and go straight to Spam. 

But things are changing now. With 36% of shoppers seeking personalized experiences from retailers, it is obvious that eCommerce personalization is here to stay. Online retailers can easily live up to customers’ expectations by incorporating simple customer segmentation strategies. 

Let’s look at these customer segmentation strategies in the next section. 

6 Sure-fire eCommerce Customer Segmentation Strategies for Online Stores 

According to Yieldify, loyal customers are 8.5 times more likely to convert than new customers. While I’m not saying that eCommerce stores should not focus on customer acquisition, it is also true that creating more and more loyal customers can also boost conversion rates significantly. 

And how do you create loyal customers? 

By segmenting them into appropriate groups and offering them exactly what they want. Here are some easy yet effective strategies to build eCommerce customer segments. 

Segment customers based on their cart abandonment habits 

The customers who keep abandoning their shopping carts after adding one or two products will come under this category. Customers falling in this category fail to complete checkout for multiple reasons. These cart abandoners are costing your business big time, and you must find an approach to redirect them to their shopping carts. 

Pain points of this segment 

  • High additional charges 
  • High shipping charges
  • Forced checkout option 
  • Single payment gateway

Solutions 

  • Sending crisp abandoned cart emails, text messages as reminders 
  • Offering coupons and special offers 
  • Creating urgency with one-time offers 
  • Offering guest checkout option 
  • Providing multiple payment gateways 
cart abandonment emails
Source 


Want to explore more on abandoned carts and the strategies to convert them? Read our ultimate cart abandonment guide

Keep the one-time shoppers in the same segment 

There are some customers who have purchased only once from your store. These are the customers who are already familiar with your store, the quality of your products, and the pricing. Unlike cart abandoners who are difficult to convert, this is one easy segment. All you have to do is convert them with the right set of strategies before they forget about your store. 

Pain points of this segment

  • Unavailability of relevant products 
  • Forgot about your brand 
  • Found your products overpriced 
  • Your eCommerce store is filled with outdated items

Solutions 

  • Personalized product recommendations to reduce time on searches 
  • Relevant cross-sell/up-sell recommendations 
  • Creating a unique brand-specific messaging and reach out to the one-time customers through social media 
  • Offering occasional/seasonal discounts on all products 
  • Restocking your store from time to time with new trends 

Distinguish the coupon and special deal lovers 

A great eCommerce customer segment can be the coupon lovers. Many customers enjoy unlimited special deals, coupons, and giveaways from eCommerce stores. They only buy from online stores when the products are available at discounted prices. The best way to target these customers is through exciting coupons, discounts, and offers. 

Pain points of this segment

  • Purchases only when there is an offer going on 
  • Financial constraints 
  • Prefers discounted prices 

Solutions 

  • Developing a coupon strategy to target this customer segment 
  • Filtering available customer data based on terms like “use a coupon” 
  • Match the number of orders with the number of coupons redeemed to identify these customer groups 
  • Create discounts specific to these customer groups 


coupon code
Source 


Identify the indecisive customers 

There will always be those indecisive customers who are never sure about what to buy! They will spend hours searching for ideal products but hardly buy anything. After adding a few items, these customers either interact with chatbots or abandon their carts. The best way to target them specifically is to build a segment around them. 

Pain points of this segment 

  • Too many options lead to confusion 
  • Lack of personalized product recommendations 

Solutions 

  • Getting a 1:1 personalized recommendation engine like Argoid that displays relevant recommendations at the very first scroll 
  • Writing highly converting cart abandonment emails with suitable product recommendations. 
  • Preparing transparent shipping and return policies 
  • Incorporating social proofs within emails to win customers’ trust 

Want to know more about eCommerce recommendations and how they can improve personalization? Read our blog on 15 Product Recommendation Examples

Create customer segments based on the satisfaction level 

Another great way to segment your target customers is based on their satisfaction levels. All of your customers don’t have the same level of satisfaction. If you group them according to their respective satisfaction levels, it will be easier for you to figure out the best strategies to impress those customers. 

Pain points of this segment 

  • Different user experience leads to different levels of customer satisfaction. 
  • High dissatisfaction rate 
  • Lack of personalization leading to low CSAT score 

Solutions 

  • Start tracking each customer that purchased from your store. Find out their level of happiness and notice if that leads to repeat purchases. Based on this evaluation, you can create an eCommerce customer segment and plan to increase repeat purchase rates. 
  • Don’t forget your unsatisfied customers. Keep track of the poor ratings and negative comments to track down the unhappy customers. Build a segment around them and start acting. You can plan customized emails, discounts, targeted chatbot messages, etc., to add value to these customers. 
  • You can run CSAT surveys too. Ask relevant questions to the customers after each purchase to understand their satisfaction level. Then plan your strategy accordingly. 

Create customer segments based on their purchasing pattern 

eCommerce stores often make the mistake of neglecting their existing customers. A survey shows that existing customers are 50% more likely to try new products. This indicates that eCommerce stores should focus on the purchasing patterns of the existing customers and build segments focused on them. Satisfying your existing customers should be your top priority, as pursuing them for repeat purchases is much more cost-effective than acquiring new customers. 

Pain points of this segment 

  • Absence of personalized product recommendations 
  • High product price 
  • High shipping costs 


free shipping pattern
Source 


Solutions 

  • Getting a product recommendation engine that offers personalized suggestions on different eCommerce website pages, including product page, cart page, and home page. 
  • Offering occasional discounts planning loyalty programs for the existing customers to ensure that they purchase from your eCommerce store again and again. 
  • Offering free shipping from time to time to ensure that your existing customers don’t have to pay high shipping charges and they can enjoy a seamless shopping experience. 

Formed your segment already? Here is the next step… 

Have you successfully planned your customer segments? The next step is to offer a high level of personalization with a product recommendation engine. A recommendation system can help you to achieve: 

  • 1:1 personalization for each customer segment 
  • High conversion rate and retention rate 
  • Real-time, highly converting product recommendations 

Want to know where you can get it all? Talk to our experts right now! 

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