Improve Sales with Better Customer Segmentation and Online Financing Options
Personalized marketing is proving the modern eCommerce strategy to unlock revenue generation, and customer segmentation plays a critical role in experiencing the crucial benefits of said strategy. In this article, we discuss customer segmentation in more detail and provide recommendations on how to leverage segmentation alongside online financing options to improve eCommerce sales.
What is Customer Segmentation?
Customer segmentation refers to the process of grouping your customer base into several categories that present different key characteristics. These groups, or segments, combine customers with similar shopping behaviors for online retailers to tailor personalized marketing to each consumer group that makes up a company’s segmentation profile. For example, customers within a specific age group and earning bracket may lean towards considered purchasing behaviors that require more thoughtful marketing to win over their attention. Another customer segment may categorize impulsive buyers that consistently return to grab various products across a company’s catalog. These customers may be swayed by discounts, coupons, and loyalty programs that support their on-demand buying behaviors. With a better understanding of one’s customer segments, eCommerce platforms can integrate strategies to improve sales.
Using Online Financing to Improve Sales
Online financing options are a relatively new and powerful tool that the best eCommerce brands on the market integrate to expand their customer segment portfolios. ChargeAfter is a leading provider of multi-lender online financing for merchants that provides opportunities to improve sales through greater consumer financing support. The platform is an easy-to-integrate and affordable plugin that businesses can incorporate into any online retail platform, including Shopify, Bigcommerce, Magento, and more. Once embedded into a website, the platform gives consumers immediate access to consumer financing at the push of a button and without having to leave one’s store to seek third-party financial aid. Whatsmore, consumers are given access to zero-interest loan plans that require no credit checks and connect customers to lenders who have been sufficiently vetted for reliability. Then, customers can easily purchase the products in their carts with little concern over hefty repayment plans, improving an eCommerce platform’s sales as a result.
What are the Benefits of Customer Segmentation
The key benefits of customer segmentation are the ability to craft personalized marketing, integrate additional tools such as online financing, and leverage the unique buying behaviors of each subscriber group new to or returning to your online store.
eCommerce platforms can use customer segmentation to eliminate general marketing that can become costly. For example, pay-per-click (PPC) campaigns that are driven by broad consumer marketing profiles provide a far inferior return on investment than ad campaigns with hyper-targeted consumer profiles. With a greater understanding of your customer segments, you can target audiences that mirror the customers you are already having high success with. This will result in compound sales growth with a significant return on investment as you have to do little additional target market research when developing new campaigns.
With more knowledge of your customer segments, you are also able to provide solutions through cost-effective marketing channels where these segments are most likely to respond. Assessing the analytics, some of which can be provided via ChargeAfter’s online financing tool, eCommerce owners and their marketing teams can develop better sales funnels and a wider range of sales funnels, each one targeting a specific customer segment in their audience profile. These sales funnels should improve sales as they are tailored to the unique shopper, providing an experience that aligns with their distinct online shopping expectations.
In summary, the use of online financing alongside a clear customer segmentation portfolio can help eCommerce brands improve their sales and stay ahead of the competition in the competitive online retail marketplace.