how to segment your customers and target their needs

© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.

Webinar #4: June 10, 2010

Optimizing Content through Segmentation and Targeting

Bob Garcia Director, Product Marketing

© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.

Process involves testing, identifying and using segments, and using test

results to target content and create highly personalized web experiences.

What is Site Optimization?

A discipline and a continual process

Allows marketers to maximize content relevance

Result is improved conversion rates and engagement


Site Optimization Continuum

Segment Testing General Testing Targeting Profile Targeting


Current & Planned Use of Tactics

95%

83%

71%

74%

Use: Current or Planned

Use: Current or Planned


“Relevance doesn't need to be rocket science.”

“Simply identifying with customers through segmentation, by

using personas, or by listening to user-generated feedback

provides fuel for increasing relevance.”

Emily Riley, Forrester Research, April 28, 2009 “: Five Ways to Improve the ROI of Your Behavioral Targeting Campaigns”

Emily RileyForrester Research


“How Mature Is Your Marketing Organization?”

“Onsite behavioral marketing programs, delivering customized, targeted Web content are emerging as an appealing option for businesses seeking new ways to drive sales and improve conversion rates in an era where accountability for marketing spend continues to grow.”

Andrea Fishman, ClickZ, Mar 24, 2010 “Are You Ready for Behavioral Marketing?”

Andrea FishmanClickZ


“Use your own site data.”

“Do more with the web analytics platform. The most obvious

way to extend an existing Web analytics implementation is by

closing data collection and analysis gaps through the addition of

functionality from your vendor’s own tool kit. Analytical

extensions to Web analytics include A/B and multivariate testing

and behavioral targeting applications.”

Joseph Stanhope, Forrester Research, March 29, 2010 “How Web Analytics Will Emerge as a Cornerstone of Customer Intelligence ”

Joe StanhopeForrester Research


ONE REASON WHY?

To Get a Bigger…


Visualizing Segments

100% of visitors

100% of visitors

1 segment = all 16 segments = all

AllNew vs. Returning

4 KeyProducts

8 MajorMarkets

16 VisitorPersonas

Segments Share one or more preferences or characteristics

Segmentation Division of visitors into segments that are then used

against defined objectives to drive relevance


Segment Attributes

Geo IP location

DMA Code

Time of Day/Week

Browser | Device

EnvironmentGeo IP location

Organic Search Term

Paid Search Term

Banner Link

Referrer

Source

Cookie

Visitor Data Mart

CRM Data

External Variables

Pages viewed

Authentication

Login

Path

Behavior


Prioritized Attributes for Targeting


Segment Selection

Determine whether a segment is worthy of targeting:

1. Priority – focus on high value customers

2. Population – sufficient size and potential value

3. Objective – for example reduce excess inventory or improve UX

4. Fit – synergy and breadth of potential promotions

Tip: Marketers can use technologies like Webtrends Visitor Data Mart to explore and

discover historical segments based on behavioral and demographic customer data.


The Process

Segmentation

Segment selection criteria:

• Geography• Keyword• Tactic – email• Device – mobile vs. desktop• Etc….

Real-Time Targeting

Create segments and define target

rules to map segments with content

Define and build content for segments to position:

1. Product2. Content3. Offers

Target Content


Where does Segment Data Come From?

Visitor’s User Agent string Contains data identifying a web browser and other

system details (e.g. time, day, etc.).

A unique identifier for each machine connected to the

Internet. Companies such as Geotrends compile

databases of IP address locations.

Visitor’s IP Address

Used to programmatically collect information.

Solutions like Optimize makes this easy.Capture >> JavaScript

Discover richer segments based on behavioral and

demographic customer data.Visitor’s Profile


Segmentation Criteria 101

1. Environment: visitor’s browser passed variables, e.g. browser, day, time, etc.

2. Referrer: parse on part or whole referring URL. Anything other than URL parameters.

o Full or parts of a URL (e.g. "/product/") to filter traffic coming from a URL containing "/product/“

o Types of pages (e.g. .htm, .aspx, .php, etc.)

3. Geolocation: using GeoIP database to capture location-based information

o E.g. Area Code, City, Country, Time Zone, etc.

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4. Query string attribute: use variables in the HTTP query string

o Domain.com/?field=value => “member”

5. Paid Search (e.g. Google) URL tracking parameters that Search Engines pass

o Google paid search term example: utm_term = running+shoes

6. Data Object Attributes: on-page variables (dynamic or JS) like cartTotal

o Data object attribute = “cartTotal” is greater than “1000”

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7. Cookies: solutions like Optimize allow you to inspect and segment on cookie values

o New vs. returning user state

o Campaign source

8. Imported Segment Criteria: using imported historical segment insights

o Lifetime value (revenue)

o Visit recency and frequency

o First/most recent purchase value

o First/most recent purchase time

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Business Value of Targeting

Segment-based Targeting is a triple win:

1. FAST TIME TO VALUE - starts producing results FAST

2. RELEVANCE - improves the experience

3. BROADER ROMI - maximizes conversions

Your audiences will reward you:o Loyaltyo Customer satisfactiono Share of walleto All the big metrics – revenue, conversions, leads, etc.


Requirements for Success

Test PlanningTest PlanningStrategy Segment

SelectionTarget

PlanningTarget Setup

Target Activation

Campaign Performance

PROCESS

Deep customer segment insights Marketing program strategy Campaign performance / KPIs

Target development Implementation QA

Creative strategy Asset generation Usability

Business Analyst Creative Specialist Web Developer

PEOPLE

TECHNOLOGY TestingSegmentationTargetingPersonalization


How It Works?

Targeting Process1. Strategy

2. Segment Analysis and Selection

3. Determine Target Content – Ideally through Testing

4. Target Content Setup and Activation

5. Reporting & Analysis


The Azul marketing team is looking to deliver targeted content to high value visitor segments.

example


Target offers to segments based on 3 criteria:

GeoLocation

Search Keyword

Loyalty Member Status


Content Targeting Overview


Segment Definition Example


Target Setup


Geolocation Example

Visitors from “Seattle” get:


Query String Attribute Example

Visitors coming in from keyword “Vacation” get:

keyword = vacation


Cookie Example

Existing MyAzul loyalty program

members get:


The Future Segment Discovery

segment discovery success depends on the segment attribute data you capture during test

Add External Data & Discover Segments

Targeting (Optimals)

Define Content, Run MVT Define and Capture Attributes


1. Increases content relevance

2. Enables onsite marketing

3. Maximizes conversion rates (ROI)

4. Reduces conversion “friction”

5. Helps you compete and win

Key Takeaways


Bob Garcia(e) [email protected](t) @bob_garcia

blog: For more on site optimization check out Billy’s Bloghttp://blogs.webtrends.com/optimization/

FOR MORE INFO:

http://blogs.webtrends.com/optimization/

how to segment your customers and target their needs

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