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What Is Segmentation? 4 Easy Tips

Using Woopra - March 21st, 2012 by Natalie Issa.

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Before we get into “What is segmentation?”, let’s start with the question “Who are your customers?”. The answer to this question can be surprisingly complex. Most businesses have several categories and sub-categories of customers.

You want to communicate differently with each of these categories. You want to highlight different aspects of your product depending on the customer’s needs. You want to deliver the right message to the right person at the right time. This is where segmentation comes in.

Using segmentation, you can categorize groups of customers based on behavioral and demographic criteria. You can then run analysis on different customer segments to gain insight into how each segment is interacting with your site, where they’re coming from and what they’re looking for.

Segmentation makes your marketing and development efforts significantly more effective, ultimately converting and retaining more visitors and increasing revenue.

To make the most out of your analytics segmentation, here are four easy tips to get you started.

1. Define The Question

Start by figuring out what questions you’re trying to answer. Perhaps you’re trying to find out how to best reach new customers. Maybe you want to optimize your User Interface for different customer segments. Or, you want to know how effective your various marketing efforts are among certain demographics. Once you know the questions that are important to your business, you’ll have a starting point and a direction.

2. Answer The Question

Next, use filters and analytics to segment your customers and get the answers. For example, let’s answer the question “How can I best reach new customers?”.

We first want to find out where our new customers are coming from. With our Analytics Reports, we view the “Referrers” section and add the filter “Total Number of Visits Equals 1” in order to only view results for the new visitor segment. Woopra’s filter system is intuitive enough for anyone to use (including those, like myself, who have little or no programming knowledge) yet flexible enough for a developer to fully customize.

From the results we can tell that, by far, our best recent referrers for the new visitor segment are search engines. Now we want to find out what these new visitors are searching for when they come to us. To do this, we simply go to the “Search” section.

After the terms “Woopra” and “-encrypted-”, our highest ranking search query is “web analytics”. Based on these results, we can conclude that a good way to reach new customers who are unfamiliar with our service is via SEO and search advertising for the keywords “web analytics”. We can also use this information to optimize landing pages based on these keywords.

Your segmentation can and likely will be much more detailed than the simplified example above. You can add filters for different countries, cities, browser types, actions committed on your site and much, much more. Woopra’s interface and filter system make it extremely easy for you to add multiple filters and drill down to highly targeted segments.

3. Save Key Segments with Labels

Using Woopra’s Labels feature, you can save and color code your key segments for future use. You’ll be able to use your Labels as presets for any of Woopra’s other features. To set up a Label, simply add your desired filters, name the Label and select a color.

Labels will even allow you to spot visitors in key segments live as they navigate your website!

4. Get Notifications on Segments

Now you have defined your important customer segments and you want to know when certain segments commit certain actions on your website (e.g. a new customer submits a contact form). Using Woopra’s Notifications feature, you can receive custom Notifications to your email and desktop. And if you’re using Woopra’s iOS app or Android app, you can even receive these notifications directly to your mobile phone!

We want to hear from you. How do you use segmentation? What makes it valuable to you?

If you are interested in becoming a guest blogger, please email us at blog@woopra.com

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