break the mold: 30/60/90 days segmentation isn't enough!

try these three basic segments instead - prospects, customers, loyalists

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Hey there

Greetings and a warm welcome, wonderful people!

I’m excited to announce a change: we're rebranding our newsletter from Email Power Moves to eCommerce Alchemy! Along with this, we've refreshed our logo and are ready to bring you even more valuable insights into the world of e-commerce.

It's baffling how frequently I encounter accounts missing the segmentation mark. The "30/60/90-day engaged" segment? It's ancient history. It's time to level up our game.

Effective audience management plays a crucial role in ensuring the success of your campaigns. By segmenting your audience you can tailor your messages to better resonate with each group, ultimately driving better results for your marketing efforts.

In this edition, I'm sharing three basic segments that you should be running, along with the goal and strategy for each segment.

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Now, coming back to the topic:

Why is audience segmentation so crucial, you ask?

Well, it's the backbone of any successful email and SMS marketing strategy. Great audience management sets the stage for personalised, targeted messaging that resonates with your recipients and drives meaningful results.

So, let's dive into the basics of a segmentation strategy that you should be implementing:

The Basics of a Segmentation Strategy

So, what should a basic segmentation strategy look like? At its core, it involves categorising your audience into three fundamental segments:

  1. Prospects: Individuals who have yet to make their first purchase but have shown interest in your brand or offerings.

  2. Customers (1 purchase): This segment comprises customers who have made a single purchase from your business.

  3. Customers (2+ purchases): Your loyal repeat customers who have completed two or more transactions with your brand.

Layering with Active/Engaged Behaviours

Now, let's add some depth to these segments by considering their active/engaged behaviours:

  • Identify individuals who have clicked on your emails or visited your website recently.

  • Highlight those who have made a purchase within a specific timeframe.

Why Does It Matter to Tailor Strategies for Each Segment?

It's essential to recognize that the goals for each segment differ, and as such, your approach should be tailored accordingly:

Prospects: Tempt Them In

  • Take an assertive approach to encourage their first purchase. Imagine you have a prospect who frequently visits your website, adds items to their cart but never completes the purchase. 

  • Here, your segmentation strategy should be aggressive – perhaps offering them a limited-time discount or a special incentive to make that crucial first purchase.

  • Example: Think of how fashion retailer Zara captures prospects' attention. If you've browsed their website but haven't made a purchase, they might send you exclusive early access to a sale or a limited-time discount to incentivize that first purchase.

Customers (1 purchase): Gently Nurture

  • Now, consider a customer who has made one purchase. Instead of bombarding them with promotional emails, gently nurture the relationship. Provide them with valuable content, exclusive offers, or recommendations based on their first purchase to encourage a second.

  • Example: For instance, Sephora excels at this. After your first purchase, they might send personalised beauty tips, product recommendations based on your preferences, or even a sneak peek of upcoming releases to gently nurture you towards a second purchase.

Customers (2+ purchases): Show Them Some Love 

  • Show appreciation for their loyalty and incentivize further engagement. Offer exclusive perks, rewards, or personalised recommendations to strengthen their relationship with your brand.

  • Example: Starbucks knows the power of repeat business. Their loyal customers receive personalised offers, early access to new flavours, and exclusive perks like double-star days. It's a win-win that keeps customers coming back for more.

Fine-Tuning Your Messaging

Remember, your messaging should align with the characteristics of each segment:

  • Craft attention-grabbing subject lines and content that resonates with prospects.

  • Maintain a friendly and informative tone when engaging with one-time customers.

  • Express gratitude and exclusivity when communicating with repeat customers.

The Bottom Line

While it may be tempting to rely solely on an engaged audience, especially during sales events, this approach is insufficient, considering the resources invested in sophisticated marketing tools. Your segmentation strategy should encompass a broader spectrum of audience characteristics and behaviours to maximise its effectiveness.

My Rule of Thumb

  • Be assertive with prospects: Prompt action and encourage their first purchase.

  • Be nurturing with one-time customers: Foster loyalty and guide them towards repeat purchases.

  • Show appreciation for repeat customers: Reward loyalty and strengthen their relationship with your brand.

In conclusion, effective audience segmentation isn't just a strategy – it's a fundamental aspect of delivering exceptional customer experiences. By sending the right message to the right segment at the right time, you can elevate your marketing efforts and drive meaningful results.

Take the first step toward marketing success by mastering the art of segmentation. Your audience will thank you, and your ROI will reflect the difference.

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