How will segmentation based strategies improve ROI of my e-commerce?

Brand challenge

A large retail chain has set aggressive sales targets in the e-commerce channel. The challenge was to improve conversion rates in this channel.

Maciek Kowalczyk

Business & Trading Director

  1. Data

    We have analysed data from Google Analytics, compared it with sales data and expenditure on digital. We have created a set of dashboards, thanks to which we had a quick and clear view of the most important KPIs and the latest data from the customer’s e-store.

  2. Insights

    There was no good segmentation of users, even though the e-store was visited by several hundred thousand clients each month. Digital campaigns to date have generated traffic mainly for new users. We conducted trial campaigns based on strategies adapted to 4 test segments – depending on the stage on the e-shop customer’s shopping path. The trial campaigns brought fantastic results – in the first 3 months of testing we obtained a conversion rate higher by over 75% compared to the previous period, while increasing ROI by 26%. We decided to introduce a new segmentation approach for all e-store activities.

  3. Strategy

    We first rebuilt the search, shopping and display campaigns to be in line with new segmentation structure. We used a variety of advertising messages tailored to the stage of the shopping path of the user. The next step was to set appropriate goals for each segment and to find the best matching bid strategies for SEM campaigns. In addition to the sales target, we also set KPIs for acquiring new users. We have also used the strategy based on new segmentation in programmatic campaigns.

  4. Results

    Increase in revenues

    187%

    Revenues in the e-store increased by 187% year on year.

    Increase in the basket value

    50%

    Thanks to customer loyalisation the value of the basket increased by 50%.

    Return on advertising spend

    We raised the ROI from the digital campaign by 66%.

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What can we do for you

Analysis of e-shop users

We will integrate the data on your consumers’ searches with your own data, such as: CRM database, Google Analytics, campaigns. We will look for statistically significant patterns of behaviour and clear consumer motivations. We will formulate the most important conclusions.

Segmentation of e-store users

We will segment users based on their behaviour on the site, the stage on the shopping path, other variables. We’ll isolate user segments with high potential due to your goal.

Precise marketing strategy

We will create a separate purchasing strategy for each segment. We reach them with a precise message, properly matched advertising at the time and place where they need it. Considering at the same time ROI optimisation.

Conclusions and optimisation

We will improve solutions according to the data from your campaigns. The purchase-learning model will maximise spending where it identifies the greatest purchasing potential for your consumers. Optimisation will let you save your budget. We will create a set of friendly dashboards with key information.

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