By: Pankaj Sakariya

December 26, 2023

Shopify Spotlight: Decoding the Essence of Customer Segmentation

As of today, everyone who thinks of eCommerce does talk about Shopify development services for getting started with an online store. This popularity of the platform is obvious, as Shopify offers an abundance of features for budding entrepreneurs to run their online stores with utmost proficiency. 

But how can you consider improving your Shopify store performance beyond the use of specific features within the platform? Well, one evident technique that works really well for Shopify store owners to acquire more sales and revenue is customer segmentation. 

Customer segmentation is the art of creating different groups of your existing customer base by relating to specific criteria. This way, you will be able to integrate your marketing or sales approaches for specific customer groups to increase the chances of conversions. 

Without proper customer segmentation, you will mostly be sending out offers or promotions to customers who aren’t interested in that specific product. Thus, it would annoy the customers, and they might just reject your brand store. So, to ensure you don’t incur losses due to unplanned marketing or sales approaches, it’s important for you to understand customer segmentation. 

So, before you hire a Shopify developer to assist you in developing the store and assisting you with customer segmentation, get a brief understanding of the concept to educate yourself. Let this article help you with the needful!

What Do You Understand by the Customer Segmentation Approach?

Customer segmentation is a very important process for categorising customers into their distinct groups based on diverse criteria, such as demographics, purchase history, customer preferences, and behaviour. If you run a Shopify online store, this practice will help you acquire deeper insights into the user base and understand their preferences and needs. 

This way, you will be able to help deliver a more personalised shopping experience to your customers and possibly win their loyalty. For you to better understand, segmenting the customers is important for various reasons. One of which is it allows the businesses to understand the diverse customer groups. 

Beyond this, some of the other reasons why even the top Shopify experts in Sydney suggest newcomers to the platform for segmenting their customers:

• With segmentation, you will be able to enable your businesses to personalise their marketing efforts, customer interactions and product offerings. You will be able to tailor the marketing approaches for specific customer groups. 
• You will be able to provide tailored services or products to the customers when you are aware of their unique needs or preferences upon segmentation. 
• Customer segmentation will help you with valuable insights into customer preferences and market trends, which shall enable the businesses to promote or develop products which better align with the needs or expectations of the customers. 
• Categorising your customers into different groups will enable you to allocate your business resources more efficiently, ensuring better profits. 

What are the Things You Must Count on Successfully Segmenting Your Shopify Customers?

You can hire experts to get the best Shopify website design and interactive UI with customised themes. But, if you don’t have the right techniques in place for attracting customers to buy your products, your Shopify store won’t be registering conversions. And that’s worrisome for you as a newcomer to the eCommerce world.  

So, here are some of the things that you must take note of for successfully segmenting your Shopify customers:

1. Customers’ Behavioral Data

One of the most crucial things that would help you acquire the best results from your customer segmentation is behavioural data. Take the help of Shopify experts in Melbourne and implement adequate measures to track the behaviour of customers over your site. For this, your Shopify experts will analyse the products your customers viewed, their browsing history and the overall time they spent over specific pages. 

This will help you gain insights into what interests the customers more across your Shopify store. Now, you can prepare personalised promotions or offers for dedicated customer groups to entice them to purchase from your store. 

2. Demographic Data

Acquiring the demographic data of the customers is also a big thing to support your segmentation approach. You must gather data such as gender, location, age and other details to understand the customer base better. 

This way, you will be able to craft personalised marketing strategies, enabling you to cater your pitches to a specific group of customers. When you are targeting the right group, the chances of sales are also higher. 

3. Marketing Interaction Data

Collect data with respect to your marketing campaigns and how customers have interacted with them. For instance, let the Shopify experts in Melbourne help you keep a tab on the performance of your social media ads, email newsletters, promotions or other such marketing approaches. 

Gauge the engagement quotient and response of customers to your various marketing strategies and segment them accordingly. This way, you will have clarity on what customers like about your current marketing strategies and what you must improve. 

4. Purchase History Data

Segmenting the customers should also depend on their purchase behaviours. You can analyse the past purchases of your customers and analyse the pattern they follow, in order to determine their product preferences across your store. 

It will help you create targeted and personalised marketing campaigns for certain customer groups, enabling you to promote only the products or services that they are interested in in your store. 

5. Customer Feedback & Reviews

Collecting or analysing the feedback or reviews of the customers will help you analyse their satisfaction levels upon using your store. It will give you an idea of various improvement areas that you must focus on. Following that, exploring the reviews or feedback will also help you filter your repeat or loyal customers. 

Decode these reviews to see what problems you have to address for your product qualities or store services. This way, you will be able to increase your customer base and further segment them into different groups. 

In case you are using WordPress, you can hire WordPress developer to assist you in coming up with a functional ecommerce site. 

In What Ways Can You Use Shopify Customer Segmentation?

Your Shopify website builder Australia will give you an appealing and highly functional store to operate your business. But, it is upon you to decide how to acquire customers and entice them to make purchases. The stronghold approach for you is to implement profound marketing campaigns. But without the right segmentation, it will be like approaching blind, which might do more damage than good. 

Customer segmentation will help you tailor your marketing efforts to help your customers feel more connected to your brand. Let them know that you are aware of what their needs or requirements are, and promote products that interest them. Now that you are aware of what factors or metrics to count on for segmenting the customers for your Shopify business let’s understand how you can use this approach:

6. Launch Personalized Marketing Campaigns

You can utilise the customer segments for creating personalised and targeted marketing campaigns. Tailor the promotions, product recommendations and messaging to align with the specific consumer preferences and needs of each segment group. This approach will further enhance the engagement rate of the customers and will drive higher conversions. 

1. Give Custom Product Recommendations

The customer segments will provide personalised recommendations of your product based on dedicated segment preferences and the purchase history. It is the strategy which will improve the cross-selling and upselling aspects, which will lead the customers to get a better shopping experience at your Shopify online store. In such ways, you will be able to acquire better sales and high revenue. 

2. Introduce Segment-Specific Discounts or Promotions

You must offer segment-specific discounts or promotions to incentivise the various groups of customers that you filtered. Tailor the offers based on the customer preferences, demographics and purchasing behaviour to encourage more repeat purchases and promote customer loyalty. 

3. Make the Product Development Aspects More Refined

You can use the customer segmentation aspect to acquire detailed insights into customer demands and preferences. By analysing this information, you will be able to develop new products that meet the interests of customers or enhance the quality of existing ones to align them with the needs of individual segments. Such an approach will help you increase the relevance of your product and boost market competitiveness. 

4. Seek Customization for the Communication Channels

You must be able to customise the various communication channels that are based on the preferences of every customer. Whether through social media, email or other such channels, your brand messaging or the content over the store can be tailored to make them relevant for the targeted customer groups. Thus, it will enhance the engagement rate and will improve your brand loyalty. 

Bottom Line

When you hire Shopify development services, your aim should be to build a complete store that can help you thrive in your eCommerce business. Therefore, you shouldn’t just be satisfied with a highly responsive and appealing storefront but take advice from your experts on how to implement customer segmentation. 

With the right implementation of customer segments for your Shopify store, it will be easier for you to attain a better satisfaction rate from potential buyers. Eventually, it will take your business ahead to acquire a better customer retention rate and higher conversions and scale the business growth. 

To learn more about this, it is high time to get in touch with a reputed ecommerce website design Australia agency who can offer you with related assistance.