Segment Customers Based on Total Amount Created
You’re 3 times more likely to convert existing customers if you have proper loyalty programs. So, how do you create one? In this workflow, when a customer has just placed an order, and the total spending has exceeded a specified number, Atom8 immediately puts them into the loyalty group and engages with them via email sequels.
Segment & Engage with Newly Created Customers
When your business offers products to many types of customers, you’ll want to classify them as newly created shoppers immediately after signing up on your store; furthermore, sending customized emails to each group via MailChimp as a first engagement. Later, you wish to migrate these customers to the regular customer segment to align corresponding marketing content with them. Following this workflow, you can execute those tasks in no time.
Auto-change product sort order based on customer preference
When new products are created in your store, you can give them more visibility by adding them as Featured products. When a certain amount of customers have seen the product, Atom8 automatically removes them to feature other products.
Apply membership prices to specific customer groups
Imagine you want to increase sales of a specific product by applying for this promotion. If any customer purchases this product, he will be a membership customer. A special price list for other products in the same category will be made visible when he navigates the store on some special sale occasions.
Assign Customer to the BackOrdered Group
Whoever places a back order and is willing to wait for your fulfillment will likely become your loyal customer. Don’t forget to pay special attention to them. Assign them to a group, so you don’t mistake them for another type of customer. Also, export their information in a spreadsheet you look into daily so you don’t miss any updates. Or you can treat them with special discounts for the wanted item later.
Best Customer Segmentation Examples to Increase Sales
These days, 77% of ROI comes from targeted and triggered campaigns. This number is the result of many effective customer segmentation examples, which have paved the way for these successful campaigns. Each way of classifying your audience goes hand in hand with a specific goal and demand. Generally speaking, marketers often rely on 4 main characteristics to segment their customers, which are based on: Demographics Geographics Psychographics Behaviour Customer segmentation is indeed important to your business. Given the huge number of online shoppers, most of the merchants have integrated automation platforms to get the work done quicker and more efficiently. 1. Demographic segmentation These are messages tailored to customers’ demographic information, such as: Age Gender Location Income Relationship status Annual Income Education This kind of information can be easily gathered when a customer places an order on your website. The advertisement below is targeted at parents whose children are about to start a new school year. During this time, the kids will need new clothes, bags, and stationery, thereby increasing the parents’ spend. 2. Geographic segmentation This simple type of segmentation categorizes your customers based solely on their current location, such as: ZIP code City Country Radius around a certain location Urban or rural Climate One brand that has applied this extremely successfully is the Swedish retailer IKEA. At the beginning of winter when the weather was becoming colder, they placed a huge billboard in Houston with a very creative slogan to market their sheets. This way, they managed to grab people’s attention and triggered their demands without shouting out about the product. 3. Psychological segmentation Psychological information is slightly more complicated to collect than demographics or geographics. You need to perform in-depth analysis to understand your customers’ thinking, fear, and motivations. This data includes: Social status Lifestyle Interests Value Personality There are a lot of examples of psychological customer segmentation. In this video, Traveloka taps into the traditional values of Chinese mothers, specifically their hard-workings. The main goal is to evoke the love of children for their mothers, hence raising the brand involvement and likelihood. 4. Behavioral segmentation This type of customer segmentation focuses on how your customers act in the online environment. For example: One-time purchasers New customers Loyal customers Customers who have just abandoned their shopping cart, etc Their engagement with platforms other than your website might also signal how they will interact with your brand. To track this data, you’ll need to install software such as cookies and have your customers’ consent to collect their information. This workflow allows merchants to take 2 actions: Tag platinum customers who have spent more than $10.000 on their store for special care program Send a personalized thank-you message to interact with each individual customer In this example, Warby Parker’s customer receives a thank-you email right after the purchase, ensuring a constant engagement with the brand. This also helps the brand express its gratitude towards the customer’s contribution to its development. If you’re opening a store on BigCommerce, using automation app – one typical example is Atom8 will handle store management tasks automatically. You can discover it here: Atom8 helps you handle store management tasks to improve business efficiency. Automate your segmentation for better results These examples of customer segmentation might look easy to conduct. However, it takes quite a lot of time and effort to master this tactic. Without an assistant tool, you might end up going around with a bunch of information. Integrate Atom8 to your store today and have the app do the work for you.
5 Common Customer Segmentation Mistakes
Customer relevance is crucial, with Accenture’s research showing that 25% of consumers would stop patronizing a brand they find irrelevant. Many retailers turn to customer segmentation as a solution. However, misallocated resources often lead to poor returns. Rakuten Marketing’s global study of 1000 marketers reveals that approximately 26% of marketing budgets are squandered on ineffective channels and strategies. This article explores common customer segmentation mistakes in retail and provides insights on avoiding these pitfalls to boost your bottom line. What is customer segmentation? Customer segmentation involves categorizing a company’s clientele into distinct groups sharing similar traits. This allows businesses to tailor their marketing efforts more precisely and effectively. For B2B markets, segmentation criteria may include: In B2C markets, common segmentation factors often revolve around demographics such as: By understanding customer behavioral segmentation, companies can create more targeted and effective marketing campaigns, improve customer satisfaction, and increase overall profitability. However, there are always customer segmentation mistakes that we must know. Common Customer Segmentation Mistakes Common customer segmentation mistakes include over-segmentation, which creates too many small, hard-to-manage groups, and under-segmentation, which results in a one-size-fits-all approach. Ignoring data or using outdated information can lead to inaccurate segments, while failing to regularly update segments overlooks changing customer behaviors. Solely focusing on demographics without considering behavioral, psychographic, and geographic factors can result in an incomplete understanding of customers. Additionally, lacking clear objectives and ignoring customer feedback can hinder the effectiveness of segmentation efforts. Overlooking communication preferences Your customer base likely has diverse communication habits. Some may be social media enthusiasts, while others prefer phone calls, emails, or chatbots. Understanding these preferences is crucial for effective segmentation. A common customer segmentation mistake is failing to account for these varied communication preferences, which can lead to ineffective marketing strategies and reduced customer engagement. By identifying each group’s preferred communication method, you can tailor your outreach strategies accordingly. This targeted approach increases the likelihood of customer engagement. For example: Neglecting timing considerations For businesses with a global customer base, launching campaigns simultaneously across all regions can be counterproductive. A common customer segmentation mistake is not considering time zone differences, which can result in communications arriving at inconvenient times, such as the middle of the night. It’s crucial to segment your audience by region and schedule campaigns accordingly to maximize engagement and effectiveness. To maximize effectiveness, segment your audience based on geographic location and corresponding time zones. This approach allows you to schedule campaign deliveries at optimal times for each group. Overlooking current data Customer dynamics are in constant flux. The high-value segment that yielded substantial returns on your campaigns half a year ago may no longer perform as well. Likewise, your most engaged social media followers today could be different from those a few months back. This shift occurs because your brand evolves over time, and so do your customers. These changes influence their purchasing preferences, interests, and responses to your marketing efforts. Failing to account for these dynamics is a common customer segmentation mistake, as it can lead to outdated strategies that no longer resonate with your audience. Regularly updating your segmentation criteria is essential for staying relevant and effective. Not aligning segmentation with your overall business goals Failing to align your customer segmentation with your overall business objectives can be counterproductive. Your segmentation criteria should be closely tied to your specific, high-priority goals, whether that’s converting more occasional shoppers into loyal customers, increasing average order value, reducing product returns, or boosting app downloads. Neglecting this alignment is a common customer segmentation mistake that can lead to wasted efforts and missed opportunities. For instance, if your key objective is to enhance brand loyalty, your marketing efforts should be tailored to target infrequent customers or those who have yet to engage with your loyalty program. Segmenting based on instinct and not data Creating customer profiles based on demographic information, interests, and preferences can certainly benefit your marketing efforts. However, it’s important not to rely solely on this approach. Analyzing the results of your past campaigns can provide valuable insights that may contradict your initial assumptions. The customer segments you expected to perform well might not actually do so, while the ones you initially thought were less valuable could end up delivering better returns. Overlooking this analysis is a common customer segmentation mistake, as it prevents you from making data-driven adjustments to optimize your marketing strategies and improve overall performance. Customer segmentation mistakes due to insufficient data A common pitfall for marketers is creating customer segments based on limited or incomplete data, often leading to inaccurate results. Google’s research reveals that about 61% of marketers struggle to obtain the data they need. To avoid customer segmentation mistakes, prioritize gathering thorough customer information before implementing it in your strategies. For instance, if you operate an accessories store aimed at teenagers, ensure you collect accurate data on your customers’ age demographics. This will help you create more effective and targeted marketing efforts that resonate with your intended audience. Segmenting too broadly Creating overly broad segmentation criteria can lead to inconsistent behavior patterns within a single group. When your categories are too generic or wide-ranging, you’re likely to encounter significant variations among members of the same segment. To enhance effectiveness, it’s crucial to refine your criteria and make them more specific. A common customer segmentation mistake is using overly broad criteria. For example, if you run an online grocery store, simply targeting all customers who have made food purchases online in the last six months is too broad. This generic approach fails to account for important distinctions within your customer base, such as preferences for organic products, frequency of purchases, or dietary restrictions. Overly specific segmentation While broad segmentation has its drawbacks, excessively narrow criteria also present challenges. Highly specific segmentation requires extensive customer data for evaluation. Even if you obtain detailed information, overly granular criteria can lead to numerous segments, increasing data management complexity. A common customer segmentation mistake is breaking down information to such a degree that it
9 Best Automation Apps For Shopify Stores
As an entrepreneur, you are too busy with getting the task done on time. And there’s only that many hours a day. Thus, the only thing you can do to boost efficiency is to make every hour more productive. This is why having the best automation apps are one of the most important determinants of your success, as they allow launching actions according to the pre-recorded time and procedure. Yet how do you know which tools are well-suited for your team? Before choosing a tool, it is essential to have full insights on how your team is working, which processes you’re going through, and what bottlenecks are holding you back. Shopify App Store consists of more than 1000 software with multiple features. This huge number can confuse any user if you have not thoroughly understood their differences. To help store owners make a wise decision, we shortlist them to 10 apps in terms of conversion optimization, marketing, inventory management, and so on. Also – we’ve added a bonus app that enables you to automate and integrate all the apps you use every day! Marketing automation apps 1. Klaviyo 40% of customers would buy more from a retailer who personalizes their shopping experience. Klaviyo offers a means to keep in touch with customers via shopping cart abandonment reminders and newsletters. With listening tools and best-in-class segmentation, each email is personalized based on any characteristics, event, metric, and even location, allowing buyers to relate themselves to the brand. Key features: Multiple channels integration such as Facebook, ShipStation, Yotpo, Privy, etc in one marketing workflow Use Flow Builder to automate messages across the customer journeys and pre-built template to optimize testing and distributing Detailed analytics into every single campaign Price: Free 2. Omnisend Started as a solution for email marketing, nowadays Omnisend has added more channels to their app, ranging from push notifications to SMS, Facebook message, and so on. It has become one of the best marketing automation apps for Shopify merchants. Instead of sending out every single email, your staff can set up automated workflows to communicate with your customers. This way your team can save time and resources and focus on leveraging your revenue. Key features: Easy drag-and-drop email builder and a bunch of ready-made templates Smart segmentation based on customers’ shopping behavior and other properties for maximum target precision Integrate SMS and push notifications with your email to provide an omnichannel customer experience Price: Free: 15.000 emails per month Best value: $99 per month allowing for 15.000 emails, web push notifications, advanced reports, customer success managers, and so on. Sales channel optimization apps 3. Google Shopping Google Shopping integrates your Shopify store with Google Merchant Centre to display your product wherever your customers, be it Youtube, Gmail, Search, or across the Display Network. Key features: Sync the products in your Shopify store with the Google Merchant Centre to create a Google Product Feed. Any change in your Shopify store will result in an automatic update in the Google Merchant Centre. Smart Shopping campaign that automatically optimizes the time and places your ads are shown in accordance with your daily budget Price: Free 4. Buy Button Channel Buy Button allows you to create a buy button for any product and add to your Shopify store. With this button, you can direct your customers to checkout pages or link it to any email, direct message, or social media post. Key features: Create a buy button with custom fonts, colors, and layouts Create fast and easy checkout links to promote the product Track sales using Home sales overview and Analytics page Price: Free Customer service automation apps 5. YOTPO One way to make your brand stand out among competitors is to generate positive reviews from your customers. The more appreciation you have, the higher trust shoppers have in your brand, and the higher traffic and conversion you might drive. YOTPO is a leading eCommerce platform that has helped many brands like Rebecca Minkoff, MVMT, and Steve Madden to collect reviews, ratings, and user-generated content. Key features: Collect product reviews, ratings, site reviews, and photos using automatic review emails or directly on-site Reviews Widget Showcase customer reviews, photos, and Q&A on your homepage, product pages, at checkout, and across your social channels Import your existing reviews only with a single click Price: Free plan including all basic feature Growth plan starting at $19 per month 6. Tidio Would you want to attract more customers? Do you like to capture customers’ interest whenever you go to your store? Or do you want to take full advantage of this marketing form? Tidio is among the best automation apps that integrate live chat, Bots, and marketing automation to meet the needs of the most demanding Shopify owners. Key features: 24/7 response to your customers with the help of Bots Always able to thank your customers via email or Messenger integration Instant set up with modern widget design that suits any website Price: Free basic plan Paid plan depends on the communication channel Order and delivery management automation apps 7. ShipStation ShipStation powers shipping success of all kinds, regardless of location, means, and product sizes. It implements global delivery from Shopify store to end consumers via 40+ carrier services across the US, UK, Canada, and Australia. In just a few clicks, you can import the data and have your product transferred to every customer. By automating this product, ShipStation frees up your time to spend on business growth instead of sourcing and shipping product. Key features: Combine, split, edit, and filter orders according to product details such as item use, SKU, weight, and images Add multiple delivery options to your website so that your customers can choose their preferred shipping method Connect with your customers after purchase via tracking page and return portals Price: Starter plan costs $9 per month limited by 50 shipments each Most popular is the $69 gold plan allowing for 3.000 shipments per month, up to 3 users, and community support service
9 Effective Upsell and Cross-sell Tips
As a matter of fact, the core purpose of any enterprise is to increase revenue, no matter what the industry. Since then, the terms Upsell and Cross-sell came into being to help businesses achieve that goal without spending time looking for new customers. Thanks to Upselling and Cross-selling, many businesses, especially in the e-commerce industry, even earn 35% more revenue (as reported by Amazon). In the article below, we will uncover the 9 most effective upsell and cross-sell tips that you can apply. Too busy to read? Listen to this article here: I. What is Upselling and Cross-selling? Upselling is the reason why we have a premium package on Netflix instead of the standard version we planned for. It is a strategy to sell a superior with a value-added features version of a product that the customer has already owned or considered purchasing. Cross-selling identifies products that satisfy additional, complementary needs that are unfulfilled by the original item. It’s about discovering new solutions that increase how useful existing ones are in the consumer’s eyes. For example, if you encourage a customer who has just purchased a new phone to get a protective case at the same time, that’s a cross-selling win. Upselling and Cross-selling are pretty much the same as using a spoon or fork to eat a piece of cake. Use either of them and you can fully enjoy it. These are two powerful tools that you can use interchangeably or both to bring more revenue to the company without causing any inconvenience. II. The importance of Upselling and Cross-selling for e-commerce 1. Bring in more revenue without finding new customers The immediate benefit we can see right away from these strategies is increasing revenue. It is no secret that customers buying more means that your institution will make more money. In both cases, the business objective is to increase order value by informing customers about additional product options that they may not think of. Growth for your business does not mean simply retaining the customers that you have: it is necessary that you continue to grow your wallet allocation for the current customers you have. 2. Create value and incentives for the customers Cross-selling and Upselling both focus on providing additional value to customers, instead of limiting them to already- encountered products. The key to success in these strategies is to truly understand what customers’ interests are, then respond with your products and corresponding features that exactly meet those needs. These methods also keep customers coming back again for future purchases and can help prevent shopping cart abandonment. Cross-selling and Upselling can be used in multiple stages of a sale. When these strategies are made easy for the consumers, they’re more likely to click, since they don’t need to go through the search process again. They see, they click, they purchase. That’s it! III. Dos and Don’ts to Upsell and Cross-sell effectively 1. Do pay attention to the order value You can tell a lot from the order value of a customer. Are they high or low-paying? Are they attracted to high-quality products or low-cost products? The order value is also important data for customer segmentation, from which you would have a specific marketing plan for each group. This could be done easily and automatically with Atom8 – a Commerce Automation Platform. Here’s how it works: Trigger: Product ordered Condition: If the order value is more than $500 Action: Categorize customers into a group AND Send a “thank-you” email via Mailchimp. 2. Do ensure recommended items are related to the purchased one Your suggestion should fit the customers’ needs at the very moment they make the purchase of a specific item. In order to do that, you have to categorize the products intelligently. But don’t worry about that boring messy job. Have Atom8 done it automatically for you! You thereby have time to listen to customers’ needs and desires. Thus you would better determine which of your products could interest them, and bring more value. See how Atom8 can enhance your business effectiveness and save hours of working: Atom8 will automatically categories your products to suit customers’ needs. For example, the customer has just bought a shampoo product. A cross-sell strategy is to email customers about additional hair care products such as conditioner, hair spray, dry shampoo, etc. 3. Do reward customer loyalty If you already have upsell and cross-sell tips and the campaigns work, congratulations! You have successfully convinced customers to spend even more money on your enterprise. Obviously, your next job is showing gratitude. Make sure to reward your customers for spending more and for trusting your consultative guidance. Some ideas for showing your thanks could include: Sending thank you emails Offering free gifts, vouchers, or discount codes for future purchases. Click here to see more specific use cases to make your holiday season more profitable. 4. Do send personalized offers to incentivize customers. Utilize the data you already have from customers purchasing history to get personalized. You have an idea of what your past customers like based on their past purchases – this knowledge is a part of the upsell and cross-sell tips. Understanding customer insights and purchasing habits is a great advantage to make customers feel valued, thereby stimulating them to buy more, turning them into your loyal customers. 5. Do use smart remarketing tactics Remarketing is the absolute best way to automate your upselling and get people to convert again with minimal effort. Remarketing campaigns make this insanely efficient and easy. After gathering each customer into their relevant group, it’s time to apply your remarketing plan. Configure remarketing campaigns in your favorite social networks to appeal to specific buyers with the correct messaging. 6. Don’t offer too many choices or else it can be overwhelming When using cross-selling and upselling strategies, choose your goals and understand customer goals. Do you want to tell people about your new useful services, sell unpopular products, or, on the flip side, promote the new arrivals? Quality
An Ultimate Guide to Customer Value
Building a successful eCommerce business isn’t just about having great products with a competitive price, it’s also about creating value for your customers throughout the shopping journey. Customer value provides an organization’s foundation for growth, as it affects nearly every metric that matters to an online store. Ultimately, it helps businesses boost revenue via increased conversion rate, customer retention and loyalty, etc.
E-Commerce analytics 101: A marketer’s guide to better understand your customers with data
A great e-commerce marketing is not just about email marketing, social media strategy, and paid advertising. Even if your business possesses all the most sought-after channels, how do you decide where to spend your time on those channels? The answer lies in your customer analytics.
Automated Customer Management Best Practices
Approaching customers with a one-size-fits-all marketing strategy is far from a best practice because customers differ from one another in their needs, wants, and buying behaviors. Therefore, personalization becomes an essential component in creating & developing customer satisfaction in their shopping experience. To achieve this, it is important to engage and retain the right customer at the right time, utilize appropriate customer service and marketing campaigns. This post uncovers how automated customer management can save you time to streamline costs and focus your attention on what matters. What is automated customer management? Customer management is the practice of collecting and processing data about your customers and using it to improve relationships with them. It can cover potential, current, and former customers. The goal of customer management is to get better results from every customer interaction: Customer retention improvement, as you know, it costs less than acquiring new customers; Determine what your customers want to have more targeted campaigns towards them; Develop better approaches for marketing, sales, and customer service. For e-commerce businesses, turning a visitor into a loyal customer generates over 500% more revenue than getting a new visitor to your site or listing. You can spend 4x as much on customer management as on advertising and still see better ROI. An example of Atom8’s automated customer segmentation workflow: Examples of automated customer management: After-sales service: Send a “Thank-you” email to the customer right after purchase at your store. Up-selling & cross-selling: After a certain product being purchased, offer the customer with relevant or supplementary products with a today-only-20% discount. Loyalty program: When a customer’s lifetime spending exceeds $5000/account created for more than 2 years on your store, group them to “VIP customer” group, send a notification email, and a 50% discount for the next purchase. Welcome new customers: Send a “Welcome” email with recommended products to newly created customers in your store. Personalized pricing: Customize different pricing for different groups of customers. Refund request: Instantly notify customer service team when there’s a refund request. Then, send an email to the customer with survey questions & offer alternatives. Boost your revenue with our customer segmentation templates and best practices learned from top E-commerce brands. Get for free! How can you automate customer management? Segmentation Atom8 is an out-of-the-box solution you can use to create automated workflows across your e-commerce segmentation activities. With Atom8, there are 2 ways to segment your customers, which are: Assigning customers to a group allows merchants to easily allocate customers, who share characteristics & behaviors in common, to specific groups. Adding custom attributes to a customer allows you to multi-tag a customer with different custom attributes that you can create on Atom8. This directly solves the nature of BigCommerce’s problem in terms of customer grouping in which one customer can only be added to one group. More: Woocommerce pos plugin, Bigcommerce POS On Atom8, the automation works based on the simple logic of Trigger – Condition – Action. For example, here’s the case study of Sunglass LA – our customer on how they saved 30 hours weekly on customer segmentation. Over the week of Black Friday’s big sales campaign, Sunglass LA had its eyes set on multiple discount programs for each group of customers based on their total lifetime spending. This required the team to execute quite a few challenging and arduous tasks, including: Reorganizing and grouping each order that a customer had ever purchased in the store, and then calculating the total lifetime spending for each customer; Segmenting the customer base into three main groups based on their total spending: Platinum (> $5000) – Gold (> $2000 and < $5000) – Silver (< $2000); Applying different discount percentages (30% – 50% – 70%) for multiple customer groups. An example of Atom8’s automated customer segmentation workflow: Engagement Let’s look at some use cases on how Atom8 can help with customer management automation: Welcome new customers: Thank you email after a transaction: Loyal programs: Email after a refund request: Key takeaways The key to customer management is to figure out the characteristics of each customer and accordingly engage with them at the right moment. Building an effective E-commerce customer management system requires hard work. With the latest technology and the automation of customer management, you can target your customers precisely and send them exactly what they want, saving time for more important tasks. That means better experiences for them, better operations for your team, and a better ROI for your business! Make sure to get the 14-day free trial of the app & optimize your business today!
