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Over the decades, traditional customer segmentation strategies have given way to a multifaceted approach that transcends mere demographic attributes.
Marketers now wield advanced tools and technologies that provide a treasure trove of behavioural data and insights. This data delves deep into customer behaviour patterns, offering invaluable insights into preferences and actions.
Behavioural targeting, the focus of this article, empowers marketers to harness and interpret this data, enabling a profound understanding of their customer base. Through this article, we will explore how behavioural targeting works, complete with illuminating examples.
What is Behavioural Targeting?
Behavioural targeting is a marketing strategy used commonly in digital marketing and advertising. The method leverages data relevant to users’ browsing habits and behaviours, such as the frequency and duration of visits, search terms used, pages visited, and interactions with ads and buttons.
Why Behavioural Targeting is Important
The short answer is that a customer segmentation strategy without the appropriate behavioural targeting strategy is just grouping a bunch of people with some common traits.
1. Precision and Personalisation
Behavioural targeting allows marketers to move beyond broad demographics and focus on individual users’ specific actions and interests.
By analysing a user’s online behaviour, such as browsing history, search queries, and interactions with your website or app, you can precisely tailor your marketing messages.
Let’s say you’re selling outdoor gear.
With behavioural targeting, you can differentiate between a casual browser and a potential customer who has repeatedly searched for hiking boots, read camping equipment reviews, and added items to their shopping cart.
By recognising these behavioural cues, you can personalise recommendations and promotional offers, significantly increasing the chances of converting the visitor into a customer.
When your marketing messages align with a user’s interests and preferences, it creates a more enjoyable and relevant interaction. This not only improves the chances of conversion but also builds loyalty.
For instance, if a visitor to your travel booking website frequently searches for flights to tropical destinations, sending them exclusive deals on beach resorts and travel packages will demonstrate that you understand their desires. This, in turn, builds trust and makes them more likely to choose your platform when booking their next vacation.
3. Efficient Resource Allocation
One of the most significant advantages of behavioural targeting is its ability to optimise marketing budgets.
You can allocate your resources more efficiently by focusing your efforts on users who have demonstrated interest in your products or services. This means you’re less likely to waste valuable ad spend on disinterested audiences, resulting in a higher return on investment (ROI).
Imagine yourself as a fashion eCommerce store selling a wide apparel range.
Without behavioural targeting, you might run generic ads to a broad audience, hoping to catch the attention of potential buyers.
However, by analysing user behaviour and identifying those who frequently visit the “Women’s Activewear” section, you can focus your ad budget towards this specific audience, increasing the likelihood of generating sales.
Types of Behavioural Targeting
1. On-Site Behavioural Targeting
As the name suggests, on-site behavioural targeting happens within a particular website or app and is generally used for website/app personalisation.
It involves collecting data about how visitors interact with a platform’s content, such as the pages they visit, the products they view, the time spent on each page, and even their mouse movements and clicks.
Ads and the relevant content are presented to the users aligned with their previous activity on that site. By doing this, brands can obtain higher user engagement, lower cart abandonment rates and longer time-spent on site/app.
2. Network Behavioural Targeting
Network behavioural targeting expands its scope beyond a single website. It involves tracking a user’s online behaviour across multiple websites and platforms, often with the help of third-party data providers or advertising networks.
By aggregating data from various sources, advertisers can create a more comprehensive user profile, enabling them to deliver highly personalised ads and content to individuals as they traverse the internet.
However, recent developments like the introduction of GA4 and increased privacy regulations, like Apple’s App Tracking Transparency (ATT) framework and GDPR, have placed limitations on cross-app and cross-website tracking.
This doesn’t mean network behavioural targeting is dead and should be buried, though. It just means marketers should adapt by leveraging GA4 for user-centric data, focusing on first-party data, diversifying targeting methods, and prioritising compliance and transparency to navigate this changing landscape effectively.
How Behavioural Targeting Works
Behavioural targeting is a sophisticated method of tailoring content and advertisements to individual visitors’ preferences and behaviours.
1. Data Collection and Analysis
At the core of behavioural targeting lies the meticulous gathering and analysis of user data.
The data collection step involves systematically collecting various user interactions, such as browsing history, search queries, and online purchases. Subsequently, advanced analytics tools dissect this data, extracting valuable insights and patterns that reveal user preferences, interests, and behaviours.
Due to the latest restrictions on third-party cookies, as aforementioned, marketers are now focusing their attention on first-party data collection.
2. Segmentation
With a treasure trove of data at hand, marketers employ customer segmentation techniques to categorise users into distinct groups based on their shared characteristics and behaviours.
This process allows for the creation of user profiles or segments that reflect specific interests, demographics, or online activities. By segmenting their audience, marketers can tailor their messaging and advertisements to each group’s unique preferences and needs.
3. Data Application
The culmination of behavioural targeting occurs in the application phase. Here, the insights gained from data collection and segmentation are put to work.
Marketers strategically design and deliver personalised content, advertisements, and offers to individuals within each segment. This level of personalisation ensures that users receive messages that resonate with their interests, ultimately leading to more meaningful interactions and higher conversion rates.
Jumpstart Your Behavioural Targeting Journey
Harnessing the power of user data can be a game-changer for your marketing efforts. But where do you begin?
Segmentify: Your Path to Effective Behavioural Targeting
Segmentify is a leading solution that empowers businesses of all sizes to supercharge their marketing strategies through data-driven insights and personalised engagement. Here’s how you can get started:
Data collection made simple: Segmentify’s user-friendly platform streamlines the process of data collection and analysis. With its intuitive tools, you can effortlessly gather and interpret user interactions, gaining a profound understanding of your audience’s behaviours and preferences.
Effortless segmentation: Creating precise audience segments is a breeze with Segmentify. The platform’s segmentation capabilities enable you to categorise your users based on various criteria, ensuring your messaging is finely tailored to each group’s interests and needs.
Personalised campaigns: Once you’ve segmented your audience, Segmentify empowers you to craft highly personalised campaigns across multiple channels, including email, website, and more. You can significantly enhance user engagement and boost conversion rates by delivering content and offers that resonate with individual users.
In-depth analytics: With Segmentify’s robust analytics tool Segmentify Analytics, you can track the performance of your behavioural targeting campaigns with precision. Monitor what’s working and what needs improvement, enabling you to optimise your strategies and achieve even better results.
Incorporate Segmentify into your marketing toolkit, and you’ll be on the path to creating impactful, data-driven behavioural targeting campaigns that resonate with your audience.
Don’t miss out on the opportunity to connect with prospects, keep your customers engaged, and elevate your marketing efforts to new heights. Contact Segmentify today and experience the transformative power of behavioural targeting for yourself. Your audience is waiting to be engaged in a way that’s both meaningful and effective.
Editor’s Note: This article was originally published on November 19, 2021, and was updated for accuracy and comprehensiveness on September 13, 2023.
Having been over what behavioural segmentation is, its benefits, and the 5 most important behavioural segmentation examples every marketer should know, it is now time to get to know the types of online shoppers you’ll encounter and how to convert them.
This, dear marketer, is how behavioural segmentation helps you—by letting you get to know customer types intimately.
This article will introduce you to the types of online shoppers you’ll encounter out there in the wild wild web (and the Segmentify dashboard), explain their most prominent characteristics and tell you all about the best ways to convert them.
Active loyals are the backbone of your customer base, regularly making purchases from your online store. In other words, they are your ideal customer segment.
Characteristics of Active Loyals
Regular customers: Active loyals frequently and regularly visit your website or use your app. They are familiar with your products and services and have placed multiple orders from you.
High trust level: Their previous experiences have left positive impressions, establishing trust in your brand.
Highly engaged customers: Active loyals are more likely to open your emails, follow you on social media, and join loyalty programs. They actively engage with your brand beyond just making purchases.
How to Best Target and Convert Active Loyals
Loyalty programs: Implement and promote a loyalty program that offers exclusive discounts or early access to sales to active loyals.
Personalised recommendations: Leverage their purchase history and browsing behaviour to provide personalised recommendations. This increases the chances of them finding the products they want and making additional purchases.
Exclusive previews: Provide active loyals with sneak peeks of upcoming product launches or sales. Make them feel special by granting them early access to instigate their interest.
2. Big Spenders
Big spenders, often referred to as high-value customers, are the crown jewels of any online business. These customers consistently make substantial purchases, and their willingness to spend more sets them apart from the average shopper.
Characteristics of Big Spenders
High order value: Big spenders consistently place orders with a high monetary value, often spending significantly more than the average customer.
Frequent purchases: They don’t just make large one-time purchases; they return to your website or app regularly, maintaining a steady flow of orders.
Large baskets: Big spenders tend to fill their shopping carts with multiple items, making each transaction a substantial investment.
Appreciate quality: These customers are discerning and value quality over price. They are willing to pay a premium for top-notch products and exceptional service.
How to Best Target and Convert Big Spenders
Cross-selling and upselling: Capitalise on their propensity to purchase by suggesting complementary products or upgrades. Highlight the added value they can receive by considering related items or higher-end alternatives.
Loyalty program: Implement a tiered loyalty program that offers escalating rewards based on their spending levels. This can include cashback, gift cards, or exclusive access to limited-edition products.
Engagement and feedback: Actively engage with big spenders through surveys, feedback forms, and personalised thank-you notes. Show them you value their opinions and are committed to meeting their expectations.
3. Loyals at Risk
Loyals at risk represent a unique challenge for online retailers. These customers have shown loyalty to your brand in the past, but their recent inactivity raises concerns about their continued patronage.
Characteristics of Loyals at Risk
Previously loyal: They have a history of making multiple purchases from you, which indicates a level of trust and appreciation for your brand.
Recent inactivity: It has been a while since they have made a purchase, and their engagement with your brand has dwindled. They may have temporarily switched to competitors or lost interest.
Potentially interested: Since they were once loyal customers, they will likely still be interested in your products or services.
How to Best Target and Convert Loyals at Risk
Segment and prioritise: Analyse your loyals at-risk segment to identify those with the highest potential for re-engagement. Focus your efforts on this group with more aggressive retargeting strategies.
Email marketing: Implement personalised reactivation email campaigns specifically tailored to this segment. Remind them of their past positive experiences with your brand.
Retargeting ads: Utilise retargeting ads on platforms like Facebook and Google to display relevant products or promotions to these customers when they browse the internet.
4. Churn Candidates
Churn candidates, despite having made purchases in the past, have gone an extended period without engaging with your online store.
Characteristics of Churn Candidates
Previously interested: Churn candidates have a history of making purchases from your online store, indicating that they were once interested in your brand.
Extended inactivity: These customers have refrained from making any purchases for a significant amount of time, which differs based on industry and company.
Fading engagement: Their engagement with your brand, such as opening emails, clicking on ads, or visiting your website/app, has sharply declined or ceased altogether.
How to Best Target and Convert Churn Candidates
Reactivation campaigns: Similar to loyalty at-risk customers, design personalised email campaigns tailored to churn candidates. Highlight the value of your products or services, and offer incentives or discounts for their return.
Timing and frequency: Be strategic in your communication and avoid excessive contact that might annoy them. Find the right timing and frequency for outreach based on your knowledge of their previous interactions.
Remarketing ads: Use remarketing ads on various platforms to keep your brand in front of churn candidates. Display relevant products or promotions to rekindle their interest.
5. One-Time Shoppers
One-time shoppers, as the name suggests, are customers who made only one purchase. While they may have initially engaged with your brand out of curiosity or need, the goal is to transform this solitary transaction into a long-lasting relationship.
Characteristics of One-Time Shoppers
Single purchase history: One-time shoppers have made just one transaction on your online store, suggesting initial interest but not yet a proven loyalty.
Varied motivations: Their motivations for making that single purchase vary widely, from seeking a specific product to exploring your brand or taking advantage of a limited-time offer.
Untapped potential: Since they’ve already demonstrated an interest in your products or services, one-time shoppers have the potential to become loyal customers if effectively engaged.
How to Best Target and Convert One-Time Shoppers
Post-purchase emails: Send personalised follow-up emails after their initial purchase, expressing gratitude and inviting them to explore other products or categories they might be interested in.
Educational content: Share educational content through blogs, articles, or video tutorials related to their purchase. This not only adds value but also keeps your brand on their radar.
Personalised recommendations: Utilise personalised recommendations and dynamic bundles to introduce them to complementary or related items. Showcase the value of additional purchases to enhance their initial buying experience.
6. Richie Riches
Richie riches are elite customers willing to pay a premium for high-end, top-quality products and exceptional service. They want nothing but the best.
Characteristics of Richie Riches
Deep pockets: Richie riches have significant disposable income and are not constrained by budget limitations when making purchases.
Luxury lovers: They are drawn to luxury and premium products with unique features, superior craftsmanship, and exclusive branding.
Exceptional service expectations: This customer segment expects a level of service that matches the premium nature of the products they purchase, from fast and secure shipping to personalised assistance.
How to Best Target and Convert Richie Riches
Curated exclusive selection: Ensure your online store features a curated selection of high-end products that align with the preferences of richie riches. Highlight luxury brands, limited-edition items, and unique offerings.
Cross-sell customisation options: Offer customisation options for certain products, allowing them to create unique items that align perfectly with their tastes.
Image source: Cartier
Loyalty programs: Create a VIP loyalty program specifically for richie riches, offering them exclusive perks, such as priority access to sales, concierge services, and generous rewards.
7. Lost Customers
Lost customers have not interacted with your brand in a long time and are now considered churned.
Characteristics of Lost Customers
Extended inactivity: Lost customers have not engaged with your brand, made purchases, or interacted in any meaningful way for a significant duration.
Former engagement: These customers were once actively involved with your brand, indicating a previous interest in your products or services.
Lack of recent interaction: Whether it’s due to competition, changing needs, or other factors, lost customers have effectively fallen off your radar.
How to Best Target and Convert Lost Customers
Customer segmentation: Segment lost customers based on their previous behaviour and purchase history. Create personalised re-engagement strategies for different segments to maximise effectiveness.
Personalised outreach: Utilise data to personalise your outreach. Mention specific products they previously showed interest in or highlight new offerings that align with their past preferences.
Get feedback: Send surveys or feedback requests to understand why they became inactive. Use their insights to make improvements and address any concerns they may have had.
8. Waiting First Order
These are customers who haven’t made their first purchase yet. In other words, they have shown interest in your brand but have not yet taken the leap.
Characteristics of Waiting First Order Customers
No purchase history: Waiting first order customers have yet to make any purchases from your online store, making them a vital segment for conversion.
Shown interest: They have shown initial interest in your brand, products, or services, often through signing up for newsletters, browsing your website, or adding items to their cart without completing the purchase.
Potential to convert: Since they have already demonstrated some level of interest, there’s potential to nurture their loyalty and convert them.
How to Best Target and Convert Waiting First Order Customers
Abandoned cart recovery: Implement cart abandonment email flows for those who added items to their cart but did not complete the purchase
First-purchase discounts: Offer exclusive discounts or promotions for their first order. Make the deal enticing enough to encourage them to take that initial step.
Progressive customer profiling: Gradually gather more information about these customers as they interact with your website and app. This helps you segment them more effectively for future behavioural targeting.
9. Discount Seekers
Discount seekers, also called bargain hunters, are opportunistic customers who are always looking for a good deal.
Characteristics of Discount Seekers
Price sensitive: Discount seekers prioritise getting the best possible price for their purchases above all else.
Constant deal hunting: They actively search for promotions, coupons, and discounts, both online and offline, to save money on their purchases.
Low levels of loyalty: They are willing to switch brands or stores to secure a better deal, making them relatively less loyal to any one brand.
How to Best Target and Convert Discount Seekers
Subscription discounts: Offer subscription services with a discounted rate for recurring purchases. This not only appeals to their budget-conscious nature but also fosters loyalty.
Social proof: Display reviews, ratings, and testimonials from satisfied customers who found value in your discounted products. This can boost their confidence in your brand.
Bulk discounts: Provide discounts for bulk purchases or bundles. This strategy can incentivise them to buy more while saving more.
10. Bulk Shoppers
Bulk shoppers are repeat customers who love to buy multiple units of the same product in a single transaction.
Characteristics of Bulk Shoppers
Volume-oriented: Bulk shoppers prioritise buying products in larger quantities to ensure they have an ample supply on hand.
Repeat customers: They are repeat customers who regularly return to your store for the same product or a limited selection of items.
Value-driven: These customers often seek cost savings or convenience in buying in bulk, which can vary from household essentials to items they use frequently.
How to Best Target and Convert Bulk Shoppers
Bundle deals: Create dynamic bundle deals that combine complementary or related products, encouraging bulk shoppers to explore additional items while saving money.
Reorder reminders: Send automated reorder reminders based on their purchase frequency to simplify the replenishment process.
Personalised recommendations: Use their purchase history to recommend related products that complement their bulk purchases.
Harness the Power of Behavioural Segmentation with Segmentify’s Smart Segments
Segmentify’s Smart Segments, a result of extensive experience in personalisation and conversion optimisation, revolutionise how you understand and engage your customer base. Powered by robust AI algorithms, it automatically categorises customers into meaningful segments, enabling you to harness each group’s potential fully.
Image source: Segmentify
Beyond segmentation, Smart Segments equip you with crucial metrics for every segment, including customer lifetime value (LTV), risk rate, activity ratio, and next order probability.
Armed with this invaluable data, you can craft tailored campaigns that resonate with each customer segment’s unique characteristics and preferences, all while focusing on repeat purchases to bolster customer lifetime value and strengthen your brand’s market presence.
Understanding the nuances between valuable and less valuable customer types empowers you to deliver a brand experience that not only satisfies but also captivates, resulting in a higher number of repeat purchases.
What is behavioural segmentation? What are its benefits? And perhaps a more pressing matter, what are the must-know behavioural segmentation strategies and examples for every marketer out there?
This article will answer all of these questions swarming around your head. You just sit back and relax.
Behavioural segmentation divides customers and users into subgroups based on behavioural patterns and tendencies.
In other words, behavioural segmentation delves into the behavioural characteristics of users, encompassing factors such as their awareness of, attitudes toward, usage of, preferences for, and responses to a product, service, promotion, or brand.
Enhanced precision in targeting: Behavioural segmentation empowers you to tap into the nuances of customer behaviour, enabling you to direct your marketing messages strategically.
Personalised customer experiences: One size doesn’t fit anyone. You can establish a personal connection with each individual by identifying your audience’s unique needs, desires, concerns, and message preferences. This enables you to present relevant offers and suggestions that are more likely to resonate and lead to conversion.
Cost-efficiency: Behavioural segmentation enables you to allocate your marketing budget strategically by targeting your most interested, engaged, and valuable audiences. This eliminates wasteful spending on cold leads and disinterested parties, maximising your ROI.
Measurable results:Tracking key metrics within each behavioural segmented campaign empowers you to take informed actions and continually improve your marketing strategies. This iterative approach can lead to better results over time.
Increases brand loyalty: Customers who feel valued and special are likelier to remain loyal to your brand. Building customer loyalty not only increases customer lifetime value but also boosts overall revenue for your business.
5 Behavioural Segmentation Examples You Should Know
Here, we delve into comprehensive insights about 5 potent behavioural segmentation examples that warrant your consideration for optimising your marketing strategy:
1. Purchasing Behaviour
Segmenting customers based on their purchasing behaviours is a widely adopted approach in behavioural segmentation.
This behavioural segmentation strategy involves categorising customers according to their buying habits and transaction histories, enabling companies to anticipate the behaviours most likely to lead to a purchase or conversion.
Behavioural segmentation based on purchasing habits can be explained in 4 distinct categories:
Complex decision-making: Customers falling into this behavioural pattern are deeply engaged in their decision-making process due to its complexity and significance. The purchase journey tends to be lengthy and involves extensive product research. Products under consideration often exhibit substantial, distinctive differences.
Variety-seeking: Variety-seeking behaviour emerges when customers engage in low-risk decision processes in their daily lives. The consequences of their purchase decisions have minimal impact on their daily routines, allowing room for experimentation and diverse purchasing behaviours within repetitive buying cycles.
Dissonance reduction: This scenario resembles complex decision-making but with a twist. The decision remains essential, but the products being compared lack significant differences in their features. These products or companies are generally very similar, leading customers to typically favour the one with the lowest price.
Habitual purchasing: Habitual behaviour typically arises from personal preferences or strong brand loyalty. The products being compared usually share similar features, and the decision-making process is not intricate or highly involved. This category often reflects customers’ consistent loyalty to a specific brand or product.
2. Spending Habits
Behavioural segmentation based on your audience’s spending habits can provide invaluable insights for enhancing your marketing campaigns’ performances. This method entails considering various aspects of customer spending behaviour:
Shopping mode: Distinguishing between online and in-store shopping preferences.
Promotional sensitivity: Identifying the discount seekers.
⚡️ Pro tip: Constantly targeting non-discount seekers with personalised discount campaigns would be a strategic mistake.
Let’s illustrate for clarity. You have a gamification campaign, a Spin the Wheel game, with different discount prizes in each slice. You should not waste this on non-discount seekers.
Targeting the discount-seekers with this kind of gamification campaign will get you more conversions. Because they’re always actively looking for deals.
Understanding how your customers allocate their resources, where they choose to spend, and when they do so can significantly enhance your marketing strategy.
This behavioural targeting optimisation maximises the utility of your existing resources and capital while ensuring that customer awareness and engagement remain top priorities.
3. User Status
Behavioural segmentation based on how much a user interacts with your brand, website, or app is also a great way to get to know your audience.
Understanding and catering to each user status segment’s unique needs and behaviours is crucial for a well-rounded marketing approach that maximises user engagement and satisfaction.
The most common user status segments are:
Non-users: They have never engaged with your product or service. You should focus on educating them and generating initial interest.
Potential users: Potential users have shown interest or are in the early stages of considering your product. You should nurture their curiosity and guide them towards conversion.
First-time users: These are individuals who have recently started using your product or service. Your goal should be to provide an exceptional experience to ensure they become repeat users.
Regular users: Regular users are loyal customers who frequently engage with your website and/or app. You should focus on retaining their loyalty, enhancing their experience, and encouraging continued engagement.
Former users: Former users, or churn customers, have previously interacted with your product but are no longer active. You should identify the reasons for their departure and entice them to return.
4. Customer Journey Stage
A customer’s journey unfolds through several distinct stages, each offering valuable insights for marketers:
Awareness: In this initial phase, customers are identified based on their initial interactions with a brand. By analysing these early interactions, you can determine which customers are potential prospects worth pursuing.
Engagement: The engagement phase includes customers eager to learn more about the brand, its services, and its values. Segmenting customers based on their engagement levels and responses helps identify effective strategies, products, or campaigns that drive conversions and foster customer loyalty.
Evaluation/Consideration: Following successful engagement, customers enter the critical phase of considering their purchase decisions. Breaking down this phase lets you pinpoint the paths leading to successful conversions.
Purchase/Conversion: Segmenting users according to their purchasing behaviour enables you to measure the effectiveness of all sales channels, as discussed earlier.
Post-purchase: A brand’s journey with the customer is incomplete even after a successful purchase. Tracking post-purchase behaviour allows you to create segments based on user actions and develop strategies to optimise after-sale loyalty efforts efficiently.
Throughout this journey, marketers gather a wealth of data, each phase characterised by unique traits such as traffic patterns, operational efficiency, and cost consumption.
Analysing this data empowers you to craft consumer-specific and journey-specific marketing strategies, ultimately boosting conversions at every stage. Moreover, it facilitates the identification of phases that require further development, enabling you to allocate budgets more effectively, tailor messages, and send notifications that resonate with customers at different stages of their journey.
Identifying and nurturing loyal customers is paramount as they often contribute the most substantial share of your revenue. Not only do they generate repeat business, but they also tend to increase the average order value (AOV), benefiting your bottom line.
To maximise the impact of loyalty-based customer segmentation and make other customer segments more like your loyal customers, consider integrating it with other technical approaches such as customer journey and user status.
Combining aggregated customer data from various segmentation methods can provide valuable insights into customer loyalty.
Once you’ve identified your audience’s loyalty boundaries and their specific needs, here are some considerations to enhance their progression to the next loyalty level:
Analyse what factors contributed to their increased loyalty and at which stage of the customer journey this occurred.
Determine the most effective ways to engage and impress your most loyal customers.
Evaluate which aspects of your brand are compelling to loyal customers and which areas need improvement to nurture further loyalty.
Enhance Landing Page Personalisation with Dynamic Content through Segmentify
No two website visitors or app users are identical.
Segmentify’s advanced algorithms recognise and categorise visitors based on their unique behaviours and actions. Leveraging this valuable data, Segmentify utilises behavioural segments to personalise landing pages with tailored banners, products, and content carefully selected to engage and resonate with each visitor.
The ability of our algorithms to distinguish between an Argentina soccer fan and a France supporter can make all the difference in creating a meaningful user experience.
And when it comes to personalising landing pages, incorporating videos is the icing on the cake.
Consider this: The human brain processes visual information a staggering 60,000 times faster than text. By welcoming visitors with landing pages featuring personalised animated content, you initiate their journey along the sales path more swiftly.
This approach forges a stronger emotional connection with your brand, facilitating a faster and more engaging interaction.
Don’t hesitate to contact us for more information on how Segmentify can revolutionise your landing page personalisation. We’re here to answer your questions and help you tailor your marketing strategies for optimal results.
Editor’s Note: This article was originally published on September 14, 2021, and was updated for accuracy and comprehensiveness on September 7, 2023.
Google is sunsetting its A/B testing and web experimentation tool, Google Optimize and its larger enterprise version, Optimize 360, on September 30, 2023.
This change has left users seeking a Google Optimize alternative to continue their experimentation programs.
We’ve already reviewed everything you need to know about Google Optimize sunsetting and what it means for businesses.
Now, let’s look at the five best Google Optimize alternatives to help you with your transition. We’ll cover AB Tasty, Optimizely, VWO, Kameleoon, and Zoho PageSense.
Why You Need to Switch to a Google Optimize Alternative
First and foremost, Google Optimize and Optimize 360 will not be available after September 30, 2023.
Since Google does not have an Optimize replacement in place at the moment and likely will not have one in the near future, you’ll need to find an alternative, independent A/B testing tool to ensure the continuation of your experimentation program.
Having independent A/B testing tools is critical for Proof of Concept (PoC) processes, as executing PoC is a crucial step for any organisation before committing to a technology solution.
As you consider shifting towards a new customer engagement solution or transitioning from manual approaches to automated strategies, the PoC phase assumes a central role. And using an independent third-party tool during PoCs ensures objective, reliable and accurate results.
That is why Segmentify leverages third-party A/B testing tools during its PoC periods.
This strategy enables us to demonstrate the genuine potential of our platform within an actual operational context. It gives you a clear vision of how our technology harmonises with your marketing objectives and KPIs.
5 Google Optimize Alternatives
Here are some Google Optimize alternatives you should look into:
AB Tasty
The first of Google’s suggestions, AB Tasty, offers a low-code approach to A/B and multivariate testing.
The experimentation tool also lets you personalise website content with the same package.
Pricing: AB Tasty offers a quote-based pricing plan, which might be discouraging for people and brands who want to know what they will pay upfront.
Optimizely
With Optimizely, you can “test your way to perfection”.
Optimizely, which has been around for over 10 years, is a widely favoured low-code experimentation tool for running A/B and multivariate tests.
Google has also formally declared plans for a more seamless connection between Optimizely and GA4 down the line.
Pricing: Optimizely uses a quote-based pricing model. They’re also offering a one-time-only special discount for Google Optimize customers.
VWO
Another one of Google’s suggestions, VWO, allows for A/B testing and experimentation without needing intricate technical knowledge.
There’s, however, a drawback.
Website experimentation and mobile app experimentation are offered as different packages.
This means you’ll have to pay more if you want both experimentation tools. And considering that most traffic comes from mobile, VWO might not be for marketing teams with limited budgets.
The discontinuation of Google Optimize will not affect Firebase, Google’s mobile platform for A/B testing and experimentation. However, it is always prudent to anticipate future changes. Exploring other options for mobile A/B testing tools may be a good idea.
Pricing: They have a free website A/B testing plan. However, the free plan only includes A/B testing. If you want the multivariate testing, you’ll have to opt for the PRO package, which costs $739 per month.
Kameleoon
Meant for enterprise-level customers, Kameleoon offers web, full stack, and feature experimentation in a single platform.
Kameleoon has native, two-way integration with GA4, enabling you to effortlessly incorporate segments from GA4 into your tests developed with Kameleoon.
Pricing: Kameleoon offers quote-based pricing. Additionally, brands transitioning to Kameleoon from Google Optimize will benefit from a free setup service and a waived licensing fee for the initial month.
Zoho PageSense
Zoho PageSense offers a variety of tools for tracking, analysing, optimising, and personalising your website.
Zoho PageSense tools are designed to help you understand what’s working on your site and how visitors interact with it.
Aside from optimising content, it enables you to assess the impact of pop-ups, forms, and dropdowns for their effectiveness.
Pricing: Based on a website’s monthly visitors, the price range is €30-780 monthly.
Farewell, Google Optimize
With Google Optimize approaching its sunset date, it’s essential not to delay selecting its replacement. While numerous A/B testing alternatives are available, not all will align with your specific requirements.
Assess your current Optimize usage, highlight key features, and identify desired enhancements. By thoroughly researching and evaluating your needs, you can confidently discover the optimal tool for enhancing visitor satisfaction and achieving better outcomes.
Ready or not, Google is pulling the plug on its testing platform on September 30, 2023.
You, dear reader, and other Google Optimize users are probably left wondering what this means for your business.
What happens to your experimentation program once Google Optimize and Optimize 360 are gone? Or how can you choose the best Google Optimize alternative?
This article will help you understand everything you need to know about the discontinuation of Google Optimize and why such unbiased third-party tools are critical for PoC processes.
Key Takeaways
Google Optimize and Optimize 360 will not be available after September 30, 2023.
Google is working on providing an A/B testing solution in GA4; however, it’s highly unlikely that it will be available by the time Optimize is gone.
Businesses using Google Optimize and Optimize 360 must find alternative third-party testing tools, since these are vital for ensuring objectivity and accuracy during PoC processes.
What is Google Optimize and Google Optimize 360?
Google Optimize is a free web optimisation platform offered by Google. The platform is developed for running A/B, multivariate, and redirect tests to optimise conversion.
Google Optimize 360 is the paid version of Google’s optimisation tool. It is an enterprise-level tool with advanced features and dedicated support from Google’s optimisation team.
When is Google Optimize Sunsetting?
Google Optimize and Optimize 360 will no longer be available after September 30, 2023.
Why is Google Optimize Sunsetting?
Google has decided to sunset Google Optimize 5 years after its initial launch because it lacks “many features and services that the company’s customers need and request”.
According to Krista Seiden, a former employee on the Google Optimize team, Google plans to incorporate A/B testing features into GA4. However, we may have to wait longer than September 30 for that.
16/ Google has said they are excited to bring more A/B testing to GA4, but what this actually means remains to be seen.
My hope is that Google will build in some of the Optimize functionality directly to GA4, but I suspect this will not be ready before the Sep 30th sunset.
Whether you were using Google Optimize or Optimize 360, here’s what’s going to happen after Google pulls the plug on Optimize:
You won’t have access to the platform: Experiments can continue until September 30; any experiments still active at that time will be terminated.
You need to download your historical data: You won’t be able to access past experimentation data after the sunset date.
GA4 will soon be compatible with other testing tools: Google is working on making integrations between GA4 and third-party testing tools possible. Although, there’s no definitive timeline given.
You’ll need to find an A/B testing tool: There is no guarantee that Google will replace Optimize. To ensure the continuation of your experimentation program, you’ll have to find a Google Optimize alternative.
Firebase A/B testing will not be affected: Google’s mobile A/B testing and experimentation platform will not be impacted by Google Optimize’s discontinuation—for now.
Segmentify Uses Independent Third-Party A/B Testing Tools During PoCs to Ensure Unbiased Results
A Proof of Concept (PoC) is a pivotal stride for any organisation before fully committing to a solution. As you contemplate transitioning to a new customer engagement solution or upgrading from manual methods to automated strategies, the PoC process takes centre stage.
The PoC is an initial gauge of how well the solution’s technology aligns with your business goals. This step serves as a valuable opportunity to assess the potential Return on Investment (ROI) that our solution can bring to your business, solidifying its suitability for your unique needs.
Segmentify leverages third-party testing tools to ensure the PoC results are unbiased and accurate.
This approach allows us to showcase the true capabilities of our platform in a real-world setting, providing you with transparent insights into how our technology aligns with your marketing goals and KPIs.
With innumerable promotional emails vying for your audience’s attention, how do you ensure that your message not only gets noticed but also sparks genuine interest?
The answer lies in email personalisation.
Tailoring your emails to your audience is absolutely essential for achieving outstanding results in your email marketing efforts. It’s vital to ensure that your emails strike a chord with your readers to maximise their impact and precision.
This article will unravel the benefits of personalised emails, share real-world email marketing campaigns by renowned brands and explain why they work.
Key Takeaways
Generic emails are passé. Craft campaigns that treat each subscriber as a unique individual, addressing their preferences and behaviours.
Whether you’re starting small or aiming big, personalised emails can be tailored to suit your brand’s goals and customer expectations.
Personalised communication isn’t just about immediate gains. It’s a way to build lasting relationships and foster brand loyalty.
What’s a Personalised Email?
A personalised email is a targeted marketing communication sent to an individual tailored to their preferences, behaviours, and characteristics.
Instead of sending the same generic message to a broad audience, personalised emails leverage data to create and deliver content that resonates with recipients on a personal level.
Without much further ado, let’s dive in and examine the benefits of personalised emails:
1. Cost-Effectiveness
Crafting personalised emails might seem resource-intensive at first glance, but the returns on investment (ROI) can far outweigh the costs. Compared to traditional mass emails, where a one-size-fits-all approach is taken, personalised emails yield higher conversion rates, making them a cost-effective choice in the long run.
To increase your reach, investing in this field will help you reach more people, such as email services that will help you build your email list for a fee. With this investment, it is important to keep your ROI in mind as there are better strategies than investing in this heavily to start with. However, in the long run, having a targeted email list will go a long way in converting contacts to sales.
2. Higher Open Rates
Many people who receive brand marketing emails in their inboxes say they delete them without opening them. People say they treat the “Promotions” folder in their Gmail accounts as spam and will not open any email stored under it.
Is it as simple as putting “Dear [First Name]” in the subject lines? While this strategy can boost your open rates by around 40%, more steps should be taken to increase the open rates with further personalisation.
In addition to personalising the subject line, it is essential to make the subject line give information about the email’s content.
Touching base on your customer’s activity on your website is essential in this regard. For example, a subject line that says “Dear [NAME], you might be interested in leopard print handbags.” will ensure that you are addressing the right person and their interests regarding their shopping behaviour.
The biggest takeaway is that when an email resonates with the recipient, they are more likely to open it. By tailoring the subject line and content to suit the individual’s preferences and needs, personalised emails can experience notably higher open rates.
3. Improved Click-Through Rates
A benchmark by Bluecore on emails reports a 139% increase in click-through rate (CTR) for personalised emails. In addition, repeat customers are more likely to continue shopping, while converting first-time buyers is more complicated.
This benchmark shows us that personalised email content is a must if you want to increase your CTR. This increase in CTR can only be achieved by accurate content and product recommendations in the email’s content.
Platforms such as Segmentify, where AI engines directly process the users’ website activity to display the products or content they are more likely to be interested in, help create the ultimate personalised email communication.
An example of the case is the most prominent in price-drop products. When customers go through your catalogue, they most likely see the prices, note the products they are interested in, and wait for the price to be more affordable for their budget.
An email that includes these products both in the content and the subject line of the email means that these customers you have not converted before will open the email, see the products they saved and click on them as they are on discount. This will help massively with the CTR and ensure that the visitor is converted into a customer.
4. Increased Conversion Rates
Building a personalised network of emails means that your customers will start to create a bond with your brand as they will notice that everything you are sending over is personalised to their liking. This means that your emails will stand out from the crowd when it comes to being personal to one customer, accurate to their preferences, and showing them what they might be interested in.
As mentioned before, having the right personalisation tool that will do all of this for you without any effort means that you will be converting more people into customers who might not even have bought a single product from you before, as well as keep customers coming back for more in the long run.
A person who sees a cookie-cutter email you send them might need to click on the products in it. However, a person that is sent an email that shows them what they were or are still interested in will capture their attention. This attention-grabbing email, in turn, will bring the customer back to the store and get them a step closer to a purchase.
In an email, try to show a person interested in baggy clothing, skinny jeans. You will not only ensure they will not get back on the website, but they will also ignore future emails, which show the importance of accurate customer profiling and targeted advertisement in capturing and keeping customers.
5. Better Return On Investment (ROI)
The combination of increased open, click-through and conversion rates results in an improved ROI. When your marketing pounds are invested in reaching the right people with the right message, the returns become substantially more attractive.
As email marketing is expected to reach a revenue of $11 billion by the end of 2023, the piece of the pie you will have can either be small or large depending on your choosing the strategy, the amount of investment into email marketing, and the 3rd party tools.
With the right strategy, you ensure you get a more significant piece of the pie and build a better relationship with your users. This strategy should focus on how much you’re investing in the tools regarding money and time and how much revenue they bring to your company. With the right strategy, tools, and tests, your email marketing ROI can be as high as 28%.
Personalised Email Examples to Inspire You
1. Abandoned Cart Email – Adidas
Why personalised emails like this work: In this particular example, Adidas reminds the customer about the item they left in the cart. The elements that make this cart abandonment email hit the bull’s eye are:
Sense of urgency: It’s explicitly communicated that the item will be available for only ten days.
UX optimisation: The “Go to Bag” button takes the customer directly to the cart.
Mobile-optimised design: The aforementioned “Go to Bag” button is placed above the fold to avoid scrolling down on a mobile device. The button is a dark colour, creating a contrast between itself and the general design, and it doesn’t have any clutter around it, making it easier to click on.
Reassures the customers: The free return policy and payment method selection is presented in an easy-to-read way.
2. Birthday Email – Nintendo
Why personalised emails like this work: Nintendo celebrates its customer’s birthdays by granting them loyalty points, which they can use with future purchases.
Design: The email’s design elements and colour choices reflect the brand’s vibrant personality.
Email copy: Like the design, the email copy matches Nintendo’s childlike, playful tone.
Loyalty points: Who doesn’t like free points they can use for their next purchase, especially if you’re somewhat of a regular customer?
3. Instructional Email – Holafly
Why personalised emails like this work: The eSIM card provider Holafly sends its customers instructional emails explaining how to install and activate their eSIM after finalising their purchases. The email content includes:
Product purchase details: Destination country, travel duration, and data amount are listed.
Detailed instructions for different devices: If you have to go and look for the information rather than it being presented to you in an easy-to-follow manner, you will not choose that service provider the next time you need a similar service.
4. Transactional Email – Airbnb
Why personalised emails like this work: Order or reservation confirmation emails like the one Airbnb sends are crucial for brand-customer relationships. Because 1) customers want reassurance that the transaction was successful and 2) they want the useful information right under their fingertips.
Design: The email design is sleek and free of any clutters to let what is truly important shine—information.
Reservation details: Booking dates, costs, location, and host information are listed.
Cancellation policy: Airbnb reminds the customer of their host’s cancellation policy should they need it.
5. Welcome Email – Nespresso
Why personalised emails like this work: Nespresso’s welcome email is one for the books; it looks and feels like you’ve got an invitation from an exclusive club.
Design: The email’s sleek design matches Nespresso’s visual language perfectly.
Call-to-action: The CTA button sits at the top right corner and is pretty easy to spot.
Focusing on relationship building: This welcome email isn’t about getting that cash right away. Nespresso first wants the subscriber to discover their product range, emphasising the main message—they’re delighted to have the subscriber there.
Final Words on Personalised Emails
Generic, one-size-fits-all emails are a thing of the past. Your subscribers crave content that resonates with their individual preferences and needs.
Building a strong relationship between a brand and its audience requires meaningful interactions. Personalised emails offer a direct way to achieve this goal. Using data, technology, and creativity, you can cultivate connections beyond the screen.
To achieve positive outcomes, you must extend email personalisation beyond simply incorporating the user’s first name. True email personalisation involves:
Personalising content for various time zones.
Catering to the desires and requirements of users.
Incorporating visual elements.
FAQs About Personalised Emails
What is email personalisation?
Email personalisation refers to tailoring email content to match the individual recipients’ characteristics, preferences, behaviours, and interactions with your brand. Personalised communications go beyond basic elements like addressing recipients by name and include subject lines, body content, offers, and CTAs.
What are the benefits of personalised emails?
Personalised emails offer several benefits, including:
Cost-effectiveness
Higher open rates
Higher click-through rates
Higher conversion rates
Higher ROI
Are personalised emails more effective?
Yes, personalised emails are generally more effective than generic mass emails. Personalisation makes your brand’s communication more relevant and engaging for recipients by tailoring content to their interests, needs, and behaviours.
How much does it cost to set up personalised emails?
Personalised emails can elevate engagement levels and provide an enhanced user experience, making the additional effort unquestionably worthwhile.
What elements in an email can you personalise?
You can personalise these elements in your email marketing:
From name
Subject line
Email copy
Multimedia
Email content offers
Product/content recommendations
Editor’s Note: This article was originally published on December 13, 2021, and was updated for accuracy and comprehensiveness on August 23, 2023.
What comes to mind when one thinks of Customer Segmentation? Right off the bat, you may think of Market Segmentation. But what’s the difference between the two? And why is segmentation so important?
Join us as we explore pivotal customer segmentation examples that every marketer should be aware of.
What Is Customer Segmentation?
Customer Segmentation is achieved by splitting your customer base into smaller groups according to typical demographics, preferences, and traits.
The purpose of customer segmentation is to craft tailored marketing strategies for each cluster, backed by comprehensive research.
For marketers, carving out these subgroups is a game-changer. By understanding diverse sub-group needs, product and service marketing become a breeze. As customers resonate with offerings that match their preferences, they’re more inclined to make purchases. The crux here is to establish a genuine connection with your target audience.
Customer Segmentation vs Market Segmentation: What’s the Difference?
Market segmentation, as the name implies, divides the market into smaller sections. Customer segmentation, a subset of this, focuses on categorising customers with similar traits. Think gender, income level, lifestyle, and spending habits—attributes that enable refined targeting.
Why We Need Customer Segmentation
Transitioning from product-oriented markets of the past to customer-oriented markets is a key feature of modern marketing. As the saying goes, the customer knows best.
Customer segmentation aids in understanding sub-groups, enabling marketers to fine-tune strategies that cater to precise needs. It’s about cultivating that sense of desire—making customers exclaim, “That’s exactly what I’ve been seeking!”
Through segmentation, laser-focused marketing campaigns, tailored promotions, and even bespoke advertisements are tailored to influence specific sub-groups. This breeds customer loyalty, with personalised products becoming a gateway for repeat business.
Unveiling the Numbers: The Power of Personalisation
Statistics don’t lie. When customers are offered a personalised shopping experience, 44% become repeat purchasers. Impressively, 39% are likely to share their experience with friends and family. The takeaway? Personalisation’s potency hinges on deep customer understanding – a realm only segmentation can unlock.
In other words, true personalisation cannot be achieved without really understanding the target audience. Hence, personalisation depends on segmentation, and segmentation depends on collecting the necessary and correct data about the customer base.
Once you’ve nailed segmentation, selecting the optimal communication channel becomes second nature. Email, social media, even door-to-door sales – it all stems from profound customer insights. Building robust relationships, tweaking the user experience to best match the target audience’s need and even experimenting with pricing are all in the segmentation playbook.
A Marketer’s North Star
Ultimately, your aim as a marketer is to create long-lasting relationships with the customers. The marketing machinery serves as the conduit, conveying a product or service’s essence to your audience. This places segmentation front and centre in your marketer’s toolkit.
How to Do Customer Segmentation
Customers can be segmented according to these features:
Demographics: Age, income levels, gender, family status, etc.
Psychographics: Social status, lifestyle, interest, and beliefs.
Geography: Location, climate, and language.
Behavioural: Consumption and spending habits, browsing patterns, etc.
Customer Lifetime Value (CLV), defined as the total value that a customer offers to a company in terms of money, plays a pivotal role too. By segmenting based on CLV, marketers optimise their focus, targeting high-value customers that contribute most to the company’s success.
Essential Customer Segmentation Models
If implemented correctly, segmentation through personalisation can boost revenue up by 3-5%.
Mckinsey Report
Marketers must know how and when to segment customers according to the four segmentations discussed earlier: Demographic, psychographic, geographic, and behavioural.
There is also Technical Segmentation, where the customers are segmented according to what technology they currently use or/and what technology they prefer to use. These give marketers a clearer idea of what channel to use to reach the customers through their marketing efforts.
Cluster Analysis
Firstly, to understand how to segment customers using cluster analysis, we must know what clusters are. Clusters are a group of things that have certain similarities. Cluster Analysis is a mathematical model. The purpose of using the model in segmentation is to group the customers that have similarities, spending patterns, for instance, together.
So why should marketers use cluster analysis? Once customers are segmented according to their similarities, it is easier for marketers to market a product or service to them and offer personalisation. One common way of conducting this scientific segmentation is the k-means cluster analysis.
The results obtained from the k-means cluster analysis allow marketers to predict changes in customer preferences. Also, they offer personalisation and special deals to the respective sub-group according to their preferences.
Using this advanced technique to segment is beneficial for marketers as it uses an algorithm to accurately group customers together. As a result, there is more accuracy, therefore, fewer chances of error.
RFM Analysis
Another consumer segmentation model to enhance customer marketing is the RFM (Recency, Frequency, Monetary) Analysis.
Recency: How long has it been since the customer has ordered anything or interacted with the website or app?
Frequency: How frequently has the customer ordered or interacted with the company within a given period?
Monetary: How much has the customer spent during a specific period?
RFM Analysis is used to find the best way to communicate with a single cluster of customers according to their communication preferences. It’s all about nurturing loyalty and enhancing Customer Lifetime Value.
Since marketers have extensive information about their existing customers, such as their purchase history, tastes, preferences, etc., they can use this information to successfully offer the customers offers and promotions that will touch them.
What’s more, is that using RFM is simple and can be done without complicated software and scientific methods. Moreover, it is accurate because it uses specific scales to group the customers, so it is safe to say that it is precise and guarantees success. It is also easy to analyse the information that the marketers gather.
Empower Your Marketing with Segmentation
Where connection is currency, mastering customer segmentation is non-negotiable. Elevate your marketing prowess by integrating demographic, psychographic, geographic, behavioural, and even technical facets. The models – RFM Analysis and Cluster Analysis – pave your way, bolstered by a data-driven approach that turns customers into loyal champions.
Stay agile, stay segmented, and watch your marketing endeavours transform.
Editor’s Note: This article was originally published on August 10, 2021, and was updated for accuracy and comprehensiveness on August 15, 2023.
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