How to Create an Effective Segmentation Strategy - Review

 This article is based on the learnings from CXL Institute.

Many companies can benefit from segmentation.

Reason being that it gives a little bit clearer of an understanding of what type of marketing efforts to make. 

Segmentation usually also helps to figure out what type of content to put on your website. 

The more you know your customer base, the easier it is to empathize with your customer base.

This helps in better conversion rates. 

Segments are useful for creating drip campaigns.

In this type of campaign, you are sending a list of emails, say five or six, a chain of emails to your user base, where the content is written specifically for a certain demographic type of user. 

You’ll have a different way to talk to a millennial than you would talk to a mother, for example. 

Further, segmentation is also used for your landing pages.

You can use segmentations to design your landing page based on where they’re coming in from, or what type of users they are. 

For example, within paid searching, maybe you want to make a landing page that looks different based on what keyword the user came in from. 

One can know the entire retention funnel by using segments and personalization.

You can get the type of users who are getting at the top and also how well are these users performing as they stay with you and use your product or website more often. 

People concerned should look at segmentation because it gives them an idea of what type of users they have.

Also it gives information about where they’re coming from, and whether their cost to advertise to these types of users is worth the revenue that you’re getting back from them.

The segmentation process can be done for acquisition source and demographic.

Also there are many other different segments that you can use. 

One popular way is to segment users in mobile versus web.

In this way, you can know how your website is responding based on what type of device the user has. 

Mobile versus web is useful because depending on what your product is, users might be dropping off at one layer of the funnel.

The reason may be because your website isn’t designed well enough to view the call to action you’re trying to get your users to do on a mobile device.

For example, maybe it takes too much scrolling on a mobile device to get down to that action that you want the user to do, as opposed to on the website, it’s just right in front of you.

Different browsers for segmentation are useful because it gives you insight into where QA testing might need to take place. 

If one specific browser has 85% of your user base and another browser only has 3% or 4%, then you know that QA needs to focus harder on the segment where most of the users are. 

You can also do behavioral based segments. 

If you create a drip campaign to target or remarket users who may have done a certain action or may have not done a certain action.

After that dive into the data and build a conversion funnel to figure out exactly how large this campaign is going to be.

This would give you a little bit of insight on what your revenue might be from it.

Let us understand this with an example.

If you want to send a coupon to users who put stuff in their shopping cart but didn’t complete the process, then if you do an analysis beforehand, you’ll know exactly how many users are going to get your coupon. 

This is good information to work on.

One can also use regional segmentation.

This will give you insight into how your website or product is performing at various areas in the country or region.

For example, if you’re based out of a particular city, how well does that city compare to the rest of the country? 

This will help you figure out whether you want to market outside of the city or whether it’s best to try and stay local.

This in a way is the first step. 

If you know the kind of information you think you can derive from them and then what you are going to do with that information, this will help you figure out what type of demographic information or acquisition source information you want to gather.

Now try to put yourself in the eyes of the user and try to understand where the user is coming from and what path they might be going down in order to do the action you’re trying to get them to do.

You can use Google Analytics to collect the data.

One can create your own data warehouse.

The information then can be stored internally or on the cloud.

 The user behavior can be tracked using Mixpanel.

Using a tool like Intercom, one can communicate with the users. 

Mixpanel is good for a website or iOS or Android application. 

This tool helps in giving a lot of insight. 

One needs to look at their data from multiple angles. 

So that one can verify that the numbers are correct. 

Having a data warehouse and also Google Analytics, can help in seeing different results that you’re pulling from one source to the other. 

One reason for it could be a human error as far as pulling the data.

 

Also, It can be some kind of bug in your code. 

In any way, those things are great to know and give you a lot more insight. 

When it comes to the usage of web tools such as Mixpanel or Intercom, use them in a way that your company finds practical. 

Maybe one company may not need it at all. 

The company can also choose to use Google Analytics, which is among the cheapest tools available in the market to gather the data with a lot of options to analyze the data.

If possible, this topic will be continued in another article.