How can segmentation and personalisation contribute to improving conversion rates ?

One of the goals you should have as a brand is getting conversions from your touchpoints. Touchpoints are ways or channels through which your audience interacts with your business, either on your website or app. It is not enough for you to have visitors on your site or users for your app, you need these users to take desired actions such as, subscribe to your service or purchase your products.

What is Segmentation ?



Segmentation refers to the act of separating your audience into various subgroups based on different criteria like geographical location, age groups, gender, interests, and so on. This allows you to study each subgroup critically and observe their behaviour.

Perhaps people in a particular age bracket interact well with video contents or they tend to buy a particular product you sell above every other age group or people in a particular location are very interested in a specific product. These are insights that user or audience segmentation allows you to gather. With user segmentation, you have the luxury of knowing what works and what doesn't. That way you can save money on campaigns that aren't productive with particular subgroups.

Going further, with segmentation, you can also create subgroups of users based on their behaviour when they visited your website or used your app: what pages have they visited, how long did they stay on specific pages, what steps of your conversion funnel have they reached, what CTA (Call to action) buttons have they clicked, what was their exit page, how many times did they visit your website...

What about Personalisation ?



Segmenting your audience is only a part of the process. After you have successfully identified the different subgroups in your target audience and studied their behaviour, you have gathered enough insights and are ready to take action. You should tailor your content, especially your landing pages, according to the interest and behaviour of your different audience groups.

That age group that frequently purchases one of your products will engage well with the content on that particular product more than the others. You should, therefore, show them more of it, and more related content. This is called personalisation. It involves making marketing campaigns content and website content fashioned to meet the specifications of a particular audience.

For example, with personalisation, you could show more London themed content to your audience located in London. The hypothesis of your experiment would be that your audience would engage more with your location personalised content rather that generic content because your users would immediately recognize their location and that would improve the sense of proximity and trust in your business.

As a brand, your audience comprises of different people from different age groups, gender, and interests. Generic marketing would get you some level of results but imagine if you can market to each person, what they seem to have an interest in. It would, no doubt, improve your conversion rate. Segmenting and personalising helps you create content that appeals to your different audience groups, content that is most likely to draw their attention and prompt them to take actions you want.

Data collection and data analysis are the keys to efficient user segmentation and successful personalisation. We often use traffic acquisition parameters (traffic campaigns attributes, paid traffic keyword, age range targeted, location...) to create a personalised experience for New users. With Returning users, we can go a step further and use the data that we collected during their previous visits to your website to optimise and personalise their next visits. External data such as the weather, the time of the day, the day of the month, the period of the year... can also be used to personalised users experience.

For example, if you own a clothing e-commerce store, you could use user segmentation and personalisation to your advantage. After finding out that a portion of your audience is showing interest in a specific brand of shoes, you can easily target them with emails informing them of certain discounts on those shoes. It is likely that they would engage with this email and when they click its CTA and reach your landing page, make sure that it is personalised based on their interest for the shoes, your marketing campaign (discounts)...

Optimise your traffic acquisition strategy using segmentation and personalisation



If, part of your traffic acquisition strategy, you buy ads and acquire paid traffic, it is very likely that the copy and images of your ads are the first items that your potential customers see, even before visiting your website or using your app.

Segmentation and personalisation are not only about offering users a personalised on-site experience but also about personalising each step of their journey from the first click on an ad or a search engine result that lead them to your website to the re-targeting campaign that will bring them back once they have left.

Segmentation and personalisation helps you structure your ads to appeal and resonate with a particular audience according to their interests. This helps to increase the performance of your ads as your target audience would engage and convert more than they would with a generic ad.

For example, personalising your ad content would steer you away from making the mistake of showing an ad to the wrong demography. That would turn out to be a waste of money spent on your ads. Demography is only one parameter that can be used to personalised ads content amongst many (location, time of the day, pages visited, search query...).

Segmenting your users before targeting them with personalised ads will help you increase engagement and conversion, and reduce your cost of acquisition per customer.



On the screenshot above, a user has entered the following query in google 'car insurance for 25 year old'. The first ad is personalised, the second is generic. Which one do you think has the best Click Through Rate (CTR) ?

Segmentation would help you target your market with better insights and more educated strategies. Personalisation would assist you in creating convincing content that would appeal to your target audience and would spur them to interact with. The higher the number of customers that interact with your content, the higher the rate of conversions and the more profit you make.

Want to learn more ? We can help you get started with segmentation and personalisation. Unlock the power of your data to improve your conversion rates by efficiently segmenting your audience and personalising your content, get in touch today : https://www.26data.co.uk/contact

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