Audience segmentation is the process of dividing website visitors into subgroups based on a common set of characteristics such as behavior, psychographics, demographics, and customer type. Visitor segments are the fuel that drives marketing analysis, testing, optimization and personalization efforts. These targeted groups allow marketers to see what and who is driving the end-result.
There are many ways to segment visitors. Standard segments can include dimensions such as geo-location, traffic sources, devices and page views. More advanced examples for eCommerce could include:
- Visitors who purchased when presented with discounts greater than 10%
- Visitors who viewed, purchased, and added-to-cart from specific brands
- Visitors with more than 10 product page views per session
- Visitors with order values greater than the average order value (AOV)
- Visitors exposed to coupon banners who did not use a coupon code
Audiences can also be segmented by weather, which helps eCommerce brands with seasonal product catalogs ensure they are selling relevant clothing to the right users.
Behavioral segmentation is essential to helping marketers understand and respond to on-site behaviors, such as how frequently an audience interacts with certain elements of a website and their interest toward what is being offered. It is also crucial in identifying and engaging visitors that drive the most revenue per user, which is often a tiny percentage of a site’s overall visitors. This becomes especially important in A/B testing, as running segmented tests allows you to gain insight on how high-value customers react to the experiences you’ve designed across your website.
By dividing your website’s visitors into segments, you can offer unique experiences that are tailored according to proven and relevant needs. Doing so will help you improve the user experience and maximize opportunities for conversion.