Screen Shot 2017-04-27 at 1.09.32 PM

Segmenting Your Shoppers For Higher-Value Customer Acquisition

Internet Retailer recently published an article called “The Knowledge Gap” in their April 2017 issue. The article discussed how today’s top retailers are able to deliver more personalized messaging and gain an edge over their competitors in terms of how they acquire, communicate with, and retain customers through marketing efforts. By segmenting their customer base early-on in their shopping journey, these retailers can better identify which prospects are close to making a purchase and are demonstrating signals of actionable intent, and can use their marketing budgets more effectively to target this specific group of people and drive more conversions.

The problem that most retailers face today (with the potential exception of Amazon, an ecommerce giant that isn’t necessarily strapped for marketing cash in the way other brands are) is determining how to make the best use of a limited marketing budget while still driving revenue and growing their business. A decent number of retailers will use their marketing spend equally across all prospects, and send the same content and introductory messaging to every new customer regardless of the unique actions they’ve already taken with the brand. As a result, a decent amount of these retailers’ marketing budgets go towards campaigns that ultimately fall on deaf ears, as they’re being sent to prospects who have shown little to no interest in the brand.

How can retailers manage this problem? Internet Retailer reported that the most successful ecommerce brands – most notably Amazon, as well as Overstock (a brand known for selling surplus merchandise at below-wholesale prices) – set themselves apart from other retailers by collecting and analyzing customer data at every step of the buying journey, including those very early moments that indicate whether or not a prospect is likely to engage long-term. Using behavioral data, Amazon and Overstock were able to segment their prospects into those who were demonstrating signs of future engagement and those who weren’t, and then use the bulk of their marketing spend towards these higher-value shoppers (who would be more likely to eventually make a purchase) – a method that we at Zaius wholeheartedly agree with and put at the core of our solution.

Remember that in order to get the most traction out of every dollar spent on acquisition, marketers need to be thinking about which prospects are most likely to become loyal shoppers with high customer lifetime values. The key is being able to leverage behavioral data in your marketing strategy to understand which prospects are showing more deliberate signs of interest, and then putting the bulk of your efforts towards nurturing those prospects – since they’ll be more likely to eventually become loyal, and are most likely to pay it back in the long-term. But in order to engage those prospects, marketers need to segment them and understand who will be more receptive to receiving brand messaging.

Customer segmentation is one of the best ways to target higher-value shoppers at the acquisition stage. When you segment your customers based on early signals of intent, you can not only better identify what each group of customers wants, you can determine which segments of customer will be more worth your time and effort when it comes to email campaigns. By using your limited marketing resources intelligently, you can still grow your new customer audience and drive ROI by reaching out to the kinds of customers who are actually likely to respond to your efforts and engage in a meaningful way.

The more you learn about what those higher-value segments look like, the more you can reach out to other prospects who are demonstrating similar behaviors and signals of intent. (Facebook and Google’s lookalike audiences are a great tool for this.) If you’re making sure that customer data is at the forefront of every decision you make, you’ll be better able to reach customers in a uniquely personalized way with the kinds of messages that speak to their unique needs. And when you can speak to their unique needs, you’re in a position to generate more loyal customers by better understanding their lifecycle stages and targeting them accordingly.

To learn more about our marketing platform, Zaius, and how you can segment your shoppers for more targeted marketing, visit our website – or reach out to us directly at or at 877-658-2570.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email