07 Aug Maximize ROI for the holidays: 4 ways to improve customer segmentation
Every year, holiday sales are projected to be higher than the last, and this year is no different. However, eCommerce marketers shouldn’t expect the rise in revenue to come easily.
According to IBM, cart abandonment and bounce rates have increased from last year, and pages and products viewed per session have decreased. It is getting harder to keep customers engaged, and marketers need to approach the frantic holiday season as more of a marathon than a sprint. It’s not too late to start crafting a strong plan for maximizing return on marketing efforts will be what makes or breaks the most important season of the year.
Email still reigns as the best way for brands to communicate with customers, particularly those in the millennial demographic. For brands to effectively cut through the noise of all the other emails during the weeks leading up to the holidays, taking another look at customer segmentation can make a big difference.
Look into the past
Analyzing historical data will help create a foundation to holiday marketing campaigns. Past customer engagement can reveal trends in conversion and spending habits that can be a guide for your holiday marketing campaigns. Take a look at historical transactions and find your strongest segments. You may find that segments that purchase throughout the year are a different from those power buyers, or if they’re the same, be prepared for the challenge of enticing them to spend again during the holidays.
Find your most valuable customers
Take a look at historical customer data and find the customers with the highest AOV. Separate these from the rest and create campaigns specifically to have them spending again during the holidays. Remember that high incentives don’t always mean higher AOV. In order to get the highest ROI, test the lowest possible offer will drive the highest conversions. Rather, take the time to analyze what customers purchased throughout the year and find holiday promotions that fit the pattern.
Give loyal customers some love
Give your high CLV customers extra value during the holiday. Special offers, giveaways, or even a sneak peek at holiday sales will help bolster brand loyalty. When 80% of revenue comes from 20% of your customers, these extra perks can go a long way into cementing a solid relationship with your brand.
Show Your Creativity
It’s not enough to address customers by name in emails anymore. Nor will a single piece of creative be enough to capture the attention of your entire customer base. Plan separate content for each segment making sure to appeal to brand values, incentives that will drive conversions, and individually targeted product recommendations.
Customers will be experiencing a deluge of emails in the weeks leading up to the holidays. Competition is fierce, and new brands are popping up all the time. It’s up to marketers to sift through their data and figure out exactly what will catch their customer’s attention. Email segmentation plays a huge role in successful getting the best ROI for holiday campaigns.