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Segmenting Your Data to Drive Conversion

  |  November 9, 2010   |  Comments

Digital analytics only give an overview of what's happening to the campaign. To drive results, optimise in the following ways.

Books on customer relationship management (CRM) emphasise the importance of learning about your customers to better cater to their needs. Profiles of similar customers are clustered and strategies are formulated based on these segments.

Similarly with digital analytics, aggregate data only gives you the overview of what is happening on the website or digital campaign. To improve or optimise site or campaign performance, the data must be sliced and diced.

Channel

One way is to segment by traffic source or the channel through which the site visitors come from. If tagged properly, the Web tracking tool should track exactly where the visitor came to the site from, whether it's organic search, paid search, display ads, eDMs, or directly.

These channels can be further sliced to identify better performing keywords, banners (further segmented by media placement, format, size, and creative), eDM designs, etc.

Optimisation:

Determine which channel and sub-channel deliver better results – maximise these. If banner creative A is performing better than banner creative B, then move media dollars to creative B during the campaign to get the biggest bang for your buck.

Furthermore, determine which channels are under-delivering and optimise those. For example, if an email campaign performed worse than email campaigns in the past, try to understand why it might be the case and learn from this. Ensure you are not just measuring open rates and CTRs but end goal conversion as well.

Behavioural and Engagement

Conversion on site can also be segmented by the content that visitors consume – the pages that visitors have seen before converting, products they have purchased, products they have added to a cart but abandoned, email campaigns they have responded to, high value customers, and so on.

Optimisation:

If you have an e-commerce site, certain Web tracking tools may be able to combine customer demographic and psychographic information to better target customers with offers that they are likely to buy. Such as email visitors with discounted offers for products they have abandoned in cart while on the site.

Additionally, offering cross-sell product information for visitors who have bought similar products can lead to higher average order values.

Return vs. New

This is one of the simplest ways to segment customers to understand their behaviour. Typically, return visitors are more likely to convert to a final goal on site like sales more so than new visitors. Furthermore, previous buyers can have an even higher conversion rate than new buyers.

Optimisation:

When we examine this simple segmentation on one of our clients, it seemed that only new visitors had the highest goal conversion and very few returning visitors were converting. But after further investigation, most of the returning visitors were coming in through email newsletters where the eDM links were driving to only specific news landing pages. Most visitors left after reading the update on the landing page and it was as simple as adding links for call to action on the news landing pages to improve conversion.

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ABOUT THE AUTHOR

Madhu  Malkani

Madhu Malkani is the measurement & insights director with the Data & Analytics team at MRM Worldwide where she leads the digital analytics team and works with clients to track and improve their digital performance. Madhu has a BSc in Biology and an MBA from the Hong Kong University of Science & Technology.

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