Customer Segmentation in Magento

magentoThe golden rule of marketing says that in order to be successful in business you first need to know what kind of message about your products you want to convey and who is the receiver of your message? E-marketing strategists are well aware of this rule, but they have come up with something even better - messages, which can be adapted to the needs of each of the customers separately. How is that possible? E-commerce provides you with information about customer behavior that would be difficult to obtain in any other way. Thanks to e-commerce platforms, such as the revolutionary Magento, you can use this information to customize your services according to your clients' needs and in result-increase your revenues.

What Is Customer Segmentation and How to Use It?

Customer segmentation is a method of dividing your customers into certain groups based on their preferences, buying habits and incomes. It does not take much time to discover that there is a correlation between how some of your customers react to your services and their general shopping preferences and needs. For example, if you run an online store with expensive designer products, you probably want to attract customers with higher incomes and a passion for branded, high quality products. By gathering online information you might discover that these customers are less interested in coupons and special prizes, but appreciate limited edition products and convenient shipping options. Nothing, however, should be taken for granted - if you gather enough data you might also discover that some of your customers do not share the same view on shopping as the above mentioned group, but have their unique needs. The more you get to know your customers, the more optimal your marketing strategy becomes and you can advertize different products in different ways to different groups of customers.

Using Magento to Find Information About Your Customers

Magento provides you with unique features, which allow you to thoroughly research your customers. Have you ever thought about using the registration form to understand your customers better? Asking about simple things, such as the date of birth, allows you to research the demographics of your customers. Too many boxes to fill out is not something that your customers will be pleased to see, so keep it all at a moderate level and leave all additional questions as optional. If you want to research more, ask your customers to take part in a survey and award them with special coupons for their effort. Surveys are perfect for researching what your customers think about the design of your online store or about the available payment options. The shopping habits of your customers are most difficult to research. Here's where Magento becomes the most useful. Thanks to Magento extensions you can gather data such as the number of page views, additions and removals from shopping carts of your customers, preferred payment and shipping methods, as well as the popularity of promotional coupons among certain groups of customers. To make the best use of gathered data hire marketing experts, who will be able to plan the most optimal promotion strategies, taking into consideration the preferences of your clients combined with demographic data and information acquired through surveys.

If you have any questions, please ask below!