As 2016 draws to a close, marketers need to reevaluate how to reach out to and engage their audiences. It’s been clear for a while now that mass emailing is generally unproductive, so we’ve gotten used to contacting current and potential shoppers based on variables like whether or not they’re a new member of our lists, if they’ve abandoned a cart, or maybe if they haven’t purchased in a while. That said, what’s new for ecommerce segmentation in 2017? Let’s take a look.
You’re probably familiar with the concept of RFM, which identifies customers based on recency, frequency, and monetary criteria. These are the three variables that are often standards for pinpointing easily segmentable groups of shoppers. Through RFM tactics, you can break your shoppers down into categories like the following, for example:
Any quality RFM dashboard will let you adjust your criteria to make the most sense for your business. In these ways, an RFM dashboard’s normal uses will easily tell you who to target, but based only on purchase data. This is where the new wave of omni-channel and ecommerce segmentation in 2017 comes in.
Omni-channel and ecommerce segmentation in 2017 will make the customer journey from site browser to brand advocate more straightforward than ever for the marketer who’s trying to foster it. When an RFM dashboard is part of a loyalty program and advocate marketing platform, like Annex Cloud’s is, you’re able to identify segments based on a lot more than just purchase data.
For a while now, customer loyalty and advocate marketing platforms have enabled marketers to pinpoint users based demographic data as well as on actions or variables including:
When customer loyalty and advocate marketing data like this is supplemented with RFM data, marketers now have the ability to pinpoint users based on a whole new dimension of information. Enhanced data sets can now include information regarding:
Clients can then create segments with multiple criteria, for example:
While some of these examples are extreme, you can see that the possibilities for pinpointing shoppers with this new kind of omni-channel and ecommerce segmentation in 2017 are virtually endless.
Once you’ve pinpointed which segments you want to engage, you have a bevy of options to entice them. Instead of just sending some emails, perhaps with a discount code or two, you can make use of the loyalty program and advocate marketing platform to craft a much more interesting strategy. For example:
Instead of merely having tactics like these as ideas on your whiteboard, you can easily put them into action with campaigns. Campaigns let you customize the actions of your customer loyalty and advocate marketing platform. You can grant extra points or additional contest entries to a certain segment or group of segments. More tangible examples include:
Between campaigns for special promotional actions, targeted marketing emails, rewarding special actions for a limited time, and other types of outreach, it only makes sense to have your loyalty program fully integrated with your advocate marketing platform.
The benefits of such targeted segmentation and actions are clear. 73% of consumers are annoyed when they see irrelevant content, and 75% recognize and appreciate it when businesses target messaging and offers for them.
The tangible outcomes from presenting the right content and offers to the right group of shoppers include:
Moreover, leaders in enhanced personalization and segmentation are 26% more profitable overall, according to Adobe.
It’s pointless to have any of these special segmentation and engagement solutions if you cannot measure their effectiveness. Marketers who are taking advantage of integrated RFM, customer loyalty, and advocate marketing segmentation can also take advantage of unified reporting between the three, and will be armed with the knowledge of how well their campaigns are performing.
As we saw earlier, the intersection of that loyalty and advocate marketing data with RFM data yields much, much richer customer insights, which will dominate ecommerce segmentation in 2017, and consequently customer engagement for at least as long.
For more details on why customer loyalty and advocate marketing go hand-in-hand, check out our white paper, “Advocate Loyalty: A Four-Point Strategy!” And for tips on fostering brand advocacy don’t miss out on “21 Ways to Turn Customers into Advocates!”
Annex Cloud Has United with Worldpay to Streamline Earning Loyalty Rewards