Judging by the wealth of articles on the subject, data is very hot in digital marketing now. Behavioural segmentation is an aspect of data that is yet to be covered by our contributors. So, I caught up with Webtrends' UK Sales Director, Michael Shirrmacher, last week to find out more about it.
Could you start us off by explaining to our readers what behavioural segmentation is? Is it less complicated than it sounds?
In an increasingly competitive world, businesses are looking to deliver valuable, relevant and personalised experiences for their online customers. However, the ‘right’ experience is different for each individual and these consumers are far more empowered today expecting speed and ease-of-use through all of their shopping channels.
This is where behavioural segmentation and targeting can help. It enables companies to deliver highly relevant content and a tested and proven online experience. The segmentation part of it can identify and engage high-value consumers with the most relevant and bespoke content across a range of digital channels. In terms of marketing, this information can help prove, or disprove, the marketing strategies of a business, and guide the future planning through a more accurate and data-driven understanding of the behaviour of their customers.
So what data does the company need to collect?
Customer data such as device type, geographical location, language and specific visitor behaviours can all be used to achieve behavioural segmentation. This data can be captured in real-time and can include a combination of historical, offline and in-session data to monitor in-the-moment visitor behaviour and, most importantly, can be used to target the customer with highly relevant offers and experiences in seconds.
Consumers can also be segmented by their actions when receiving marketing emails, for example unresponsive, opens or clicks. This data can then be used to improve email marketing strategies such as the design of the email or presenting a different subject line to encourage open rates.
And how can that data be used to offer personalised experiences?
Businesses are able to use data collected from individual visitor behaviour to produce accurate segments and target with content and promotional offers that provide the consumers with a more personalised and positive experience. Companies are able to combine online and offline data sourced from customers using store card accounts or loyalty card schemes to record purchases made and the time and location this took place. This can be used to build behavioural patterns for individual consumers, and provide more relevant promotions based on their activity both online and offline.
Customer behavioural data can also be used to deliver relevant content for customers through the use of historical and current insight. For example, a customer browsing home furniture will receive relevant offers based on a combination of in-session and historical behaviours – such as an email with a promotion for “3-for-2 on dining room tables and chairs” – this can encourage the customer to complete the transaction process.
How does a personalised experience benefit the customer?
There are multiple benefits of using data for behavioural segmentation and targeting, the first of which is a key element of online shopping – providing relevant content. Consumers are looking for a tailored experience, and this can only be delivered if companies have the evidence to show what is ‘right’ for each visitor. If a shopper is browsing t-shirts online, it would be irrelevant for them to receive an offer for garden furniture, and potentially a waste of marketing effort on behalf of the business.
Another benefit could be instilling a sense of trust between the brand and the consumer. For example, when considering email marketing, data can be used to decrease the amount of emails considered to be ‘spam’ to customers and encourage recipients to open and take advantage of the offers, reassuring them that the communications are likely relevant and of benefit.
Finally, personalisation can enhance the shopping experience and process for consumers, which in turn benefits the brand reputation, conversion rates and overall revenue.
And finally, how does a personalised experience benefit the company?
Personalisation can hold many benefits for a company. In terms of marketing, it can serve multiple efforts by allowing each team member to work individually on their specific campaign objectives but striving towards one common business goal by creating and using different segments. Companies are also able to save money on marketing efforts by targeting each segment specifically, rather than sending marketing materials to every customer, regardless of their relevance and simply hoping for the best.
Personalisation enables businesses to provide content finely tuned to the attributes of online visitors and provide the right experience for each consumer, increasing the likelihood of converting to a sale and preventing the visitor leaving in favour of a competitor. Using data can improve the performance of marketing programmes, both online and offline, and further enhance a brand’s understanding of customer relationships across multiple channels.
By Jonathan Davies, Editor of the Digital Marketing Magazine.
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