No two customers are alike, but certain groups of customers may be similar! Particularly if your online business involves ecommerce or the selling of products, customers may group into specific buying patterns. This may be based on what they purchased, the typical dollar amount that they purchased, how often they purchased, or even other data that you've collected from your website such as interests or hobbies that they have or share.
Why Segment by Customer Behavior?
The more that you know, the more you can craft a message or offer that is likely to convert for your users. For example, if you run a website that sells makeup, you may have a large group of users who have identified themselves as users who like to purchase eye makeup in "warm" colors. You may know this through their purchasing history or via information that they provided in their user profile. You may have another group of customers who have identified themselves as users who like to purchase eye makeup in "cool" colors. Rather than sending one email to both groups of users simply recommending eye makeup, sending two separate emails will yield better results. In the email to users who like "warm" colors, feature products in that color palette. In the email to "cool" color users, feature those colors. You'll get better results because you'll show each customer what they want to see based on their customer behaviors.
Another example of how to effectively segment users by customer behavior is to segment users by their typical purchase amount on your website. If you place a hundred dollar offer in front of customers whom you know do not spend more than twenty dollars per transaction, you are unlikely to receive a high response to your offer. However, if you put a twenty dollar offer in front of customers who regularly spend more than a hundred dollars per visit at your website, you are likely not maximizing the profits that you could gain by advertising to that audience. By segmenting your email marketing list by the average amount that users spend, you can put offers in front of them that are not only likely to convert but also likely to maximize the revenue spent.
Best Practices for Segmenting Your Email List by Customer Behavior
As we noted earlier, stay organized! You can most likely come up with dozens of ideas and ways to segment your email marketing list by customer behavior. However, if you bite off more than you can chew, you'll soon find yourself overwhelmed with data and unable to tell which strategies are most effective with your users. Create a systematic plan. Then track what works and what doesn't and repeat the segments that have proven most effective.
Also, keep data up-to-date. A user with a history of one type of purchase may change to a different type of user as lifestyles, age, and other factors change. In order to ensure the best response to your list segmentation, query fresh data each time you segment a list.
Finally, don't be afraid to experiment. Your industry or market segment may have unique customer behaviors that make an "off-the-wall" list segment make sense. Anything is worth trying once!