[Webinar] Advanced Segmentation – The Key To Finding Actionable Insights and Increasing Your Website’s Revenue
Hello there, data wizards!
We’ve decided to go for a more interactive approach for this post. As a result, Magda Baciu, Founder here at GrowthSavvy, and Ciprian Borodescu, Co-Founder and CEO @MorphL, are going to talk to you about advanced segmentation strategies you can use to boost your website revenue.
So, ready your notebook, sharpen your pencil and hit that Play button.
For those who prefer reading, a plain text version of the webinar is also available below.
Gathering insights comes from analyzing various types of data. However, today, we’ll be focusing solely on the quantitative side of things. One of the biggest challenges when working with this type of information is data overload. Hence, why you’ll need a clear and concise structure to help shape things into place.
Throughout this webinar, we’ll focus on:
- The step-by-step process of building a segmentation strategy from the ground up
- Why a healthy segmentation strategy cannot exist without first understanding the business
- How to check the accuracy of your data
- The exact framework for building your segmentation strategy framework
So, without any further ado, let’s get to it.
Website Segmentation at Work
Familiarizing yourself with the step-by-step process of building a data analytics segmentation strategy will pay off in more ways than one. Not only will you save valuable time, but you’ll also be able to extract actionable insights from website data readily available in plain sight.
Please understand that even though we will specifically discuss website conversion rate optimization, this data analytics strategy is scalable and applicable to many online marketing areas.
Here’s an example of how the guys at Spotify use data to engage their audience in an innovative, casual, and fun way.
Now, we can all agree that data can enhance advertising efforts in more ways than we can imagine. But let’s move along and see how data can help you optimize your website conversion rate.
Even though all online businesses track website traffic, very few get any value from it.
Worry not; this is precisely the purpose of this webinar – to help identify data-based growth opportunities.
Now let’s see how we craft a segmentation strategy, shall we?
Phase 1: Understanding the Business
Understanding the business is the foundation of any healthy segmentation. To get a better idea about what we mean by this, we’ll go through a few research steps. This will give context to the whole segmentation and data analysis process.
Context is a keyword here – make sure always to remember this.
Let’s see how we’d go about building a segmentation strategy for Etsy – the largest global marketplace for crafters and creative people.
As with any marketplace, sellers and buyers are two distinct groups. For this example, we’ll assume we want to increase the conversion rate for the end buyers.
What’s our North Star here? How can we know we’re heading in the right direction? The answer lies with your marketing team, customer support team, web analytics team, etc. You’ll have to sit down with them and figure out the objectives, KPIs, and metrics.
You’ll see that the most impactful insights occur when you understand what’s happening at a granular level. This way, you can make decisions that impact behavior and results on every level of your funnel.
This will imply the use of micro-actions such as applying a product filter, using the Sort feature, or requesting a custom order.
The main reason is to notice behavior patterns based on micro-events as part of the segmentation strategy.
One other thing you want to understand is your main customer’s journey. For example, a new customer that isn’t logged in to their account can only see one buying option – the Add to Cart button.
Meanwhile, someone logged in will have an additional buy button – Buy Now. Pretty neat, ey?
Last but not least, we have to talk about understanding your audience. This is where we come back to the context we previously mentioned. To get to know your audience, you’ll need to conduct some research. Here are some of the most common research methods that will help you along the way.
Don’t let the list intimidate you! You don’t have to go through it from A to Z. Try to make use of the resources you have available. However, we recommend going through at least the first five steps on that list.
Phase 2: Auditing the Analytics Data
For the next phase of the process, we’re going to focus on figuring out how much of the data is accurate.
This is a crucial step of the process – one you cannot skip if you’re aiming to create a healthy segmentation strategy.
From our experience, we’ve never encountered a single business that had 100% accuracy. Then there are does whose data is beyond repair. For example, we’ve had to declare data bankruptcy for 6 out of the last 20 businesses we’ve helped. Imagine what would have happened if we hadn’t audited the data.
So, don’t worry if you find discrepancies. It’s better to know about them beforehand than to discover you’ve invested time and other resources into decisions based on false data.
Phase 3: Building the segmentation strategy
Here is a simple graph of how we tackle segmentation. It’s hardly a secret that we can segment based on traffic, age, gender, location, device, source, etc. However, the real magic happens when you combine these simple variables with micro and macro website interactions.
We suggest starting with a single primary question – one that is based solely on the following segmentation variables.
Once you’ve done that, you can take a more layered approach that combines two or more variables.
Let’s get back to our Etsy example and take it one step further.
This is just a different representation of the framework we previously shared with you above. As you can see, we’re starting with a primary question based on a single variable – the user’s device.
The answer to this question is presented in the image below.
It’s important to understand that this primary question’s purpose is not to give you actionable insights but to help you get started on a series of more complex questions. Now that we have this settled, we can dig deeper into this segment by asking secondary questions. We combine the first variable (the user’s device) with a second variable for these questions.
Now take a look at the numbers below. Can you notice the patterns?
Seeing that users who use the search bar have a significantly higher conversion rate than those who don’t, we can start asking ourselves: How can we get creative with the search bar in other website sections – starting with desktop users?
Going even deeper, we repeat step two by adding a third variable to the mix.
The answer to this question tells us building an advertising campaign targeting male users would not be a good idea. These are the golden nuggets you’re looking for.
You could keep adding variables. Depending on how much traffic your website has and how complex it is. However, in some cases, going deeper than 2-3 variables may simply not be worth it.
As you can see, revenue-boosting opportunities can be anywhere you have data. You don’t need to hire a creative team to come up with bombastic ideas based on attracting new customers. The answers you’re looking for are already there (provided the data is not damaged beyond repair). You just need the right guidance to help extract them.
Advanced segmentation strategies can help you craft better customer experiences throughout their entire journey.
However, sometimes, you may not have the time to do all this yourself. That’s where we come in to help. If you’d like us to look at your data and awake your business’s dormant revenue opportunities, book a free strategy call or drop us an email.