effective customer segmentation
DESCRIPTION
Efficient customer segmentation in Google Analytics (Blueffect 2013 Warsaw, Poland) - examples and best practices of accurate data analysis and advanced segmentation principles in order to improve revenues of your business. - What makes you wrongly evaluate marketing campaigns: do you know, what is the real conversion rate of your website? - How to prioritize content sections of an e-commerce website. - What customer segments and cohorts are useful.TRANSCRIPT
![Page 1: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/1.jpg)
Effective Customer Segmentation
Blueffect: II Ogólnopolski Kongres Efektywności Warsaw, June 26, 2013
Pavel Jašek
![Page 2: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/2.jpg)
Agenda
1. How can a customer segmentation change your usage of web analytics data
2. Why your marketing campaigns are evaluated wrong
3. Customer cohorts
4. Actionable content segmentation and prioritization
![Page 3: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/3.jpg)
Why to Segment Your Customers
● Understanding the behaviour of different customer segments on your website
● Evaluating acquisition and retention campaigns properly
![Page 4: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/4.jpg)
Important progress in understanding website traffic
1
2
![Page 5: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/5.jpg)
Customer Segmentation Options
![Page 6: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/6.jpg)
Most Important Customer Segmentations (1/3)
● Customer Type
• Anonymous
• Registered users
• Customer with purchase history
![Page 7: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/7.jpg)
Most Important Customer Segmentations (2/3)
● Customer Lifetime Status
• New Customer
• Frequent Customer
• VIP Customer
• Nonactive Customer
![Page 8: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/8.jpg)
Most Important Customer Segmentations (3/3)
● Value segments for frequent customers
• <1 000 złoty in last 3 months purchases
• >1 000 złoty in last 3 months purchases
• > 10 000 złoty in last 3 months purchases
![Page 9: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/9.jpg)
3 Ways to Gather Data for Segmentation
1. Implementing Custom Variables
• _gaq.push(['_setCustomVar', 5, 'customer', 'VIP', 1]);
• _gaq.push(['_setCustomVar', 4, 'ID', '123', 1]);
• For GA: visit-level or visitor-level scope
• Similarly in Piwik, Adobe, Webtrekk and Webtrends
2. Backward integration to customer ID
• Universal Analytics: Dimension Widening
3. Without any implementation
• Ad-hoc segments based on pageview /login.html
![Page 10: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/10.jpg)
Recommendation #1 Start with a simple segmentation of logged-in visitors. Your view on web analytics data will change forever since than.
Pavel Jašek
![Page 11: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/11.jpg)
Good Sources to Read
● Google Analytics Custom Variables
• https://developers.google.com/analytics/devguides/collection/gajs/gaTrackingCustomVariables
● Ideas from Lunametrics
• http://www.lunametrics.com/blog/2012/08/28/20-ways-use-custom-variables/
![Page 12: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/12.jpg)
Demystifying the conversion rate
![Page 13: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/13.jpg)
Demystifying the Conversion Rate
● CR = Conversions/Total Visits
● What if not all visits come to your website in order to convert?
![Page 14: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/14.jpg)
70-90 % of bank homepage visits come only to login to e-banking
![Page 15: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/15.jpg)
Prospects Instead of Visits
● CRp = Conversions/Prospects
● CRp = Conversions/(Total Visits – Visits of current customers)
![Page 16: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/16.jpg)
Using Visits Using Prospects
• 100 total visits
• 2 new registrations
• CR = 2/100 = 2 %
• 100 total visits
• 2 new registrations
• 30 visits from customers
• CR = 2/(100-30) = 2,9 %
![Page 17: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/17.jpg)
Your registered users also come via organic and
paid traffic sources. This
impacts campaign
evaluation.
![Page 18: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/18.jpg)
Recommendation #2
Calculate conversion rates from potentional customers only.
Pavel Jašek
![Page 19: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/19.jpg)
Customer Cohorts
![Page 20: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/20.jpg)
Understanding customer activation and retention using cohorts based on registration
date
0
100
200
300
400
500
600
700
1 8 15 22 29
Nu
mb
er
of
visi
ts
Days since registration
Registered in April Registered in May
![Page 21: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/21.jpg)
What Cohorts Are Mostly Used
● Date, month or year of acquisition
● Most recent purchase date
● Traffic source of first visit
![Page 22: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/22.jpg)
Recommendation #3 Don’t limit yourself to what your web analytics tool offers. Make the tool measure, process and visualize what YOU want.
Pavel Jašek
![Page 23: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/23.jpg)
Good Sources for Cohort Analysis
● Cohort Analysis 101 by RJ Metrics
• http://cohortanalysis.com/
● Cohort Analysis in Google Analytics
• http://cutroni.com/blog/2012/12/11/cohort-analysis-with-google-analytics/
● Cohorts in Kissmetrics
• http://www.kissmetrics.com/demo/reports/cohort/
![Page 24: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/24.jpg)
Content Segmentation Matrix
![Page 25: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/25.jpg)
Content Segmentation Matrix Principles
● Group your content into sections of interest
● Compare pageviews by different types of visits
● Find significant differences as insights
![Page 26: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/26.jpg)
Segmenting by Desktop and Mobile Traffic
Content section Desktop pageviews
Mobile pageviews More on mobile?
Bank branches 2,0 % 5,4 % 174 % Loan calculator 1,0 % 2,8 % 166 % ATM Locations 0,4 % 1,8 % 333 % Contacts 1,2 % 1,7 % 39 % Currency exchange rates 0,6 % 1,0 % 70 % First login 5,9 % 2,8 % -52 % Mortgage products 3,6 % 1,7 % -52 % Saving Accounts 1,5 % 0,8 % -47 %
![Page 27: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/27.jpg)
What to Segment Content by
● Mobile traffic
● Traffic source (organic, PPC, affiliation, email…)
● Geolocation
● Customer segments
![Page 28: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/28.jpg)
Recommendation #4 This segmentation allows you to understand e.g. if your VIP customers are visiting your new products.
Pavel Jašek
![Page 29: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/29.jpg)
Content-Content Matrix
![Page 30: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/30.jpg)
Content-Content Matrix Principles
● Group your content into sections of interest
● Find number of visits that saw both sections from each combination
● Using cross-selling principle „those who saw section A also saw section B“
● Compute relative frequency of visits in such combinations
![Page 31: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/31.jpg)
Number of Visits in Section Combinations
Outdoor Clothing Shoes Light Sale
Outdoor 1 500
Clothing 540 2 500
Shoes 300 450 900
Light 655 600 477 1 450
Sale 732 777 151 633 1 780
![Page 32: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/32.jpg)
Relative Visits to Site Sections
↓Outdoor ↓Clothing ↓Shoes ↓Light ↓Sale
Outdoor 100 % 22 % 33 % 45 % 41 %
Clothing 36 % 100 % 50 % 41 % 44 %
Shoes 20 % 18 % 100 % 33 % 8 %
Light 44 % 24 % 53 % 100 % 36 %
Sale 49 % 31 % 17 % 44 % 100 %
![Page 33: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/33.jpg)
What Page Types Are Useful for Segmentation
● Homepage
● Product categories
● Contact pages
● User login
● Support pages
![Page 34: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/34.jpg)
Recommendation #5 Sections cross-views give you actionable insights about which site sections should be better linked together.
Pavel Jašek
![Page 35: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/35.jpg)
Conclusion
![Page 36: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/36.jpg)
Conclusions
1. Customer segmentation is important for unfolding what really happens on your website
2. Evaluate campaigns only by the relevant traffic
3. Make your web analytics tool measure, process and visualize what YOU want
4. Compare what different customers want on your website
5. Segmentation gives you actionable insights
![Page 37: Effective customer segmentation](https://reader033.vdocuments.us/reader033/viewer/2022051819/54c673a14a79594a538b46fa/html5/thumbnails/37.jpg)
Action Steps
1. Start with the easiest segmentation possible
2. Make a draft output with a pencil
3. Think how would such output help you
4. Implement it
5. Analyze the data
6. Present your insights to your colleagues
7. Use those insights to improve your website