A Quick Guide to Online User Segmentation

When conducting your marketing efforts, the first thing you need to focus on is customer or user segmentation.

Why? Because it defines all of your future efforts and helps you determine if you are achieving a return on your investment (ROI) and indicates the success of your campaigns.

But first let’s explain what user segmentation is.

What Is User Segmentation?

Segmentation is a kind of division. You divide or categorize your users, customers, buyers, readers…etc into groups. These groups are called segments.

By understanding the different categories of your users, you can then take the next step which is to target them.

How to Use User Segmentation?

People are naturally different, even people in the same age range can act differently or have varying interests.

In other words, it won’t be fair to you or your marketing budget if you target people aged 15 to 60 at the same time.

This also applies if you try targeting males aged 18 to 25 from the Middle East and North America. Yes, their ages are close but their interests are far and wide.

Types of Segmentation

To divide your target audience, you need to understand the types of segmentation you can use.

You can segment your audience based on:

  • Demographics: This involves dividing users based on their language, age, and gender.
  • Geographic: This is where you segment customers based on location, whether it’s continent, country, city, or even a specific neighborhood.
  • Psychographics: The division is based on habits; this is the ‘why’ behind your users’ buying decisions.
  • Behavior: Here you segment customers based on their behaviors such as how they act and what they do. It’s the ‘what’ behind their decisions. This is section is also known as interests.
Lesser Known Types of User Segmentation

There are three more types of segmentation that are often forgotten or not focused on. They primarily rely on what you as a business offer and to whom.

These are:

  • Firmographic segmentation: This is used in B2B marketing; that’s when your target customers are other businesses.
  • Cultural segmentation:  Understanding your customers’ culture can also help you in your targeting. It offers some insight on how customers of a certain culture make their decisions.
  • Occasional segmentation: This is a form of seasonal segmentation where certain words, terms, or products appear at certain times of the year versus others.

“This [occasional] segmentation focuses on specific events that are completely independent of the customer. It divides the market into categories based on the various occasions when the customer plans to buy the product, actually buys the product or uses the product,” explains marketing strategist Paul Shepherd.

He goes on to say that occasional segmentation can be further sub-divided into:

  • Universal occasions
  • Regular personal occasions
  • Rare personal occasions

Understanding Your Users via Segmentation

By segmenting your customers into groups, whether through one or more of the above options, you can begin to create a clear picture of who you are talking to.

According to data compiled by Accenture, around 81% of consumers wish brands understood them better, knew when to approach them and when not to.

Moreover, roughly 66% of marketers “struggle to personalize content in real time,” says Adobe, which adds that 77% of marketers “believe real-time personalization is crucial.”

This means that the better you segment your customers or users, the better you can target them through ads and content.

Creating a Segmentation Strategy

Last but not least, when you’ve understood the various types of segmentation, it’s time to move on to creating your customer segmentation strategy and use it to drive better sales.

What You Need to Know About the Facebook Product Catalog

One of the best ways online sellers and shops can advertise their products and generate sales is through Facebook. Specifically, through the Facebook Product Catalog.

Whether you are an e-commerce business, ticketing agent, or even a hotel offering rooms and suites, the Facebook Catalog can help your business.

Here’s what you need to know about this sales option from Facebook.

What is the Facebook Product Catalog?

As its name suggests, it’s a catalog where businesses can showcase their products and services.

Remember when customers bought catalogs for their favorite brands and went through them to pick out what they wanted to buy?

IKEA is still one of those brands who publishes product catalogs with price tags for each their products.

That said, most customers and businesses are now online, specifically on Facebook, which has garnered over 2.6 billion daily active users.

With figures like that, it’s no wonder businesses are taking unprecedented steps to be on the social platform.

How Does the Facebook Product Catalog Work?

Like the published catalogs, the Facebook Catalog allows companies and sellers to display their products on its platform. Customers can then access these products and purchase them via the company’s catalog on Facebook and Instagram.

“You can create catalogs for different types of inventory, such as products (e-commerce), hotels, flights, destinations, home listings or vehicles,” Facebook explains.

The tool used to manage a brand’s catalogs is called the Catalog Manager. You will need to upload your products one by one to the product catalog.

What Can I Do with Facebook Catalog?

Once your Facebook Product Catalog is ready, which can be used both for Facebook and Instagram, you can:

  1. Add and manage information for your inventory. This includes titles, images, product descriptions, prices, and other options.
  2. Share access to your catalog, which allows your team to work on it collectively on your catalog.
  3. Create one catalog or multiple catalogs for your products and services.

Facebook also notes that you can “set up a localized catalog for multiple languages and countries.”

Can I Use Ads for the Product Catalog?

The obvious answer is yes. It’s no secret that Facebook would like to create ads for anything and everything on its platform.

These are the types of ads you can create once you’ve created your company’s Facebook Product Catalog.

Instagram Shopping

This option is only available for products. In other words, non-tangible services don’t qualify.

Using Instagram Shopping, you can include your products in both Instagram posts and stories.

In the United States, Facebook allows customers to purchase products directly from Instagram and check out from the platform.

Facebook Page Shop

Like its predecessor, this ad type is only applicable to products.

In this case, the shop on your business page acts like a storefront, while the catalog acts as a warehouse that stores your shop’s inventory.

“If you already have a Page shop with at least one product in it, [then Facebook has] automatically created a catalog for you in Catalog Manager that’s connected to your shop,” the social media platform explains.

The Facebook Page Shop allows you to manage your inventory either in your shop or in the Catalog Manager.

You can create the Facebook Page Shop from your catalog.

Dynamic Ads

Available for all types of inventory, Dynamic ads display products or items from your catalog to people who have looked for them online.

According to Facebook, Dynamic ads “match items from your catalog with events from a Facebook Pixel or SDK, a piece of code installed on your website or app.”

To create a dynamic ad, you need to know and have a dynamic audience.

Collection ads

Applicable to all types of inventory, this ad format shows customers a collection of four items from your catalog. Customers can then tap the items to learn more or browse similar products.

What Is Facebook Dynamic Audience?

As part of this series on Facebook audiences and ads, we’ve tackled different types of audience. Today, we’re taking on Facebook’s Dynamic Audience.

If you’re wondering how you’ve never heard of this audience type or why it doesn’t appear often, you’re not alone.

Here’s what you need to know.

What is Facebook Dynamic Audience?

Unlike Facebook’s Custom Audiences and Lookalike Audiences, the Dynamic Audience is for companies, who have and use a Facebook Product Catalog to sell their products and services.

In other words, if your Facebook page doesn’t have a catalog you won’t be using dynamics audiences or dynamic ads in the near future.

It’s an audience that relies on engagement and interactions between customers and your products.

How Do Dynamic Audiences Work?

Put simply, if you have a product catalog on Facebook, once customers engage with it, then you have a dynamic audience.

Whether these users or customers have clicked on one or more of your products, bought an item from you, or simply added a product to their cart, this counts as an interaction with your shop and catalog and goes into to generate  a Facebook Dynamic Audience.

That said, there’s an important aspect to remember before you can start searching for your dynamic audience.

Your store needs to have the Facebook tracking pixel integrated in order to track your customers’ actions, says Nicolas Vibet, chief product officer at MakeMeReach.com.

How Is this Audience Dynamic?

The answer is since this audience type relies on interactions, it’s ever-growing.

Today you can have 10 users engage with your products, tomorrow that number can be 100.

Regardless of the number, whether it increases or decreases, the audience keeps forming and growing, making it a dynamic audience.

“Any interaction from users with your products, website or content will be tracked, and will design the Dynamic Audience further, reaching more people in the future,” says Vibet.

How Do I Use Facebook Dynamic Audiences?

Facebook doesn’t leave anything to chance. For the dynamic audience, Facebook has created an ad type called Dynamic Ads.

In brief, dynamic ads use items from your product catalog and display them to people who have “looked at or searched for” your products online.

Dynamic ads “match items from your catalog with events from a Facebook Pixel or [software development kit (SDK)], a piece of code installed on your website or app,” Facebook explains.

More on Facebook’s Dynamic Ads in our next blog post!

Offline-to-Online: How To Digitally Transform Your Retail Business and Drive In-Store Sales

So far, 2019 has been an incredibly exciting yet challenging year for the brick and mortar retail industry. Especially in the MENA region. 

Exciting due to the boom of digital transformation with more and more offline retailers adopting digital-first technologies to grow their businesses.  

Challenging because now the competition is not only offline, but online as well. In fact, in the MENA region alone, eCommerce sales have been growing year over year with 2017 closing at $8.3bn, 2019 already hitting $17bn and 2022 estimated to grow till $28.5bn

eCommerce Revenue from 2017 to 2019 in MENA.Data Source. 

Here’s the thing: it’s become super important for brick and mortar retailers to stay up to date with digital technologies. Technologies that make it 10X easier to compete with their online counterparts and boost in-store footfall and sales. 

In this article, we’ll walk through 5 such digitally transformative ways to not only measure and increase store revenue from new customers but also keep existing customers coming back. 

Hey, before you dive right in–  There is a simple form to request a demo or request more info at the end of the article. Please feel free to contact us if you have any questions.

1. Track and collect accurate in-store data to plan accordingly

Needless to say, if you’re tracking in-store metrics, not only will you know exactly where your store stands in terms of footfall and sales but also be able to plan campaigns and set realistic goals.

At the bare minimum, you need to track your daily footfall, sales, retention and churn rates, and the average time spent by visitors. 

For physical retailers, historically there has been a lack of easy-to-use tools that track these offline metrics. 

Here at Converted.in, we’ve taken a holistic approach to help you easily collect and track this valuable data on an hourly, weekly and monthly basis- your visits, transactions, retention rates, churn rates, slow and peak times and much more.

dashboard analytics home
dashboard analytics home

Converted.in’s dashboard; makes it easy to view all useful store metrics at a glance

Whether you’re looking to double down efforts during seasonal peak times or want to attract footfall on slow months- you can do it on Converted.In. 

2. Gain demographic and behavioral insights on the people who visit and purchase from you

Combining your store data with customer demographics and purchasing data is becoming more and more common among big and small brands in the retail space.

Why? Well, this data comes in very handy in creating highly targeted ads or promotional campaigns. 

Here, useful customer data would include things like:

– where your customers live- their location

– the age group they belong to

– their interests

– what brands they like

– the frequency and days at which customers regularly visit a store

– where they are most likely to visit

and much more.

Converted.in’s advanced demographic and behavioral analytics, for instance, collects this data and uses it to automatically segment your customers into unique groups. Thus, identifying exactly who your most profitable target audience is and where they are.

geographic retail analytics
geographic retail analytics

Customer segmentation based on specific interests

With this valuable information, you could then maximize your ROI on ad budgets by targeting specific campaigns to specific groups of people. How? Store analytics and customer intelligence data can both be leveraged to: 

– create personalized purchasing experiences

– customize promotions and offers based on customer segments and preferences

– get valuable feedback that can be used to improve your products and store services

3. Run data powered online ad campaigns to attract new customers to your store

ROI focussed ads on platforms like google, facebook, twitter or Instagram has gained a lot of momentum this year. 

Why? These platforms make it super easy for you to reach and attract larger audiences who are almost certain to buy from you. 

To run a cost effective facebook ad campaign for example, you could be targeting particular age groups. Then you could add zip codes to target a specific area around your store or where your maximum shoppers come from. 

But, here’s the challenge: The number of tools and platforms that need to be mastered to run effective ad campaigns can be overwhelming, to say the least. 

After all, no one wants to waste ad budgets. 

This is where Converted.in comes in to make running an online targeting campaign easy and revenue-generating. You can run Google, Facebook or Twitter ads from under one roof- without burning a hole in your ad spends. Not to mention SMS and push campaigns, as well.

create campaigns
create campaigns

Converted.in’s ad engine, to run targeted customer campaigns 

Plus, retailers can accurately measure the impact of their campaigns, i.e. exactly how many and who end up purchasing from their store after seeing an ad.

4. Leverage retargeting campaigns to drive repeat customers

When it comes to engaging and retargeting existing customers, most retailers make the mistake of sending too many SMSes, notifications, emails, and ads. 

Truth is: it’s not that hard to go from annoying customers to generating repeat sales, over and over again.

i) Think about how long your products last.

For example, do you sell shower gels? What is the lifespan of your product? If it’s one month, consider re-engaging customers in 20 days to remind them to buy before they run out.

ii) Upselling is gold.

Based on your customer’s past purchase behavior, you could be targeting them with products that directly complement what they’ve already bought. So, those who bought the shower gel could be targeted with a moisturizing lotion or a powder. 

iii) Exclusive early notifications for sales.

You know who is most interested in your end of season sales? The people who are already buying from you. Your existing customers. 

With Converted.in, you are already tracking your store purchases and customers. So, it becomes that much easier to use that data for retargeting your customers. Be it through push, ad or SMS campaigns, all from one place. 

5. Keep store customers hooked with a value-adding loyalty program

If there’s one thing that works in the retail space, it’s loyalty programs. Offering a loyalty program is a great way to make customers come back without giving away discounts. 

Loyalty programs can come in any style, but the foundation idea stays the same. 

You offer points to your customers, every time they make a purchase. 

The more they spend, the more points they get. 

These points are then redeemable against a future purchase.

^Creating and tracking the effectiveness of your cashback program on Converted.In

With converted.in’s loyalty features, you can run a smooth loyalty program from the same dashboard that calculates the return on every penny spent. 

At the end of the day, a successful loyalty program is one that generates higher revenues. Not one that becomes a cash sink. 

Bottom Line

Ultimately, there are a lot of moving parts that can be leveraged to boost store visits and purchases. As a physical retailer, you have the liberty to drive as little or as much footfall as your inventory can fulfill. 

Are you ready to make digital transformation work for you? Fill out the form below for a quick demo of Converted.in and learn how we can help you boost and measure your store traffic and sales.