Segmentation strategy is critical to profitable personalization. Without it you're left guessing what actually works. Even worse, if done incorrectly, you might end up targeting audiences in a way that costs you money. The best strategies start with segmentation, use analytics to learn faster, and personalize where it is valuable.
The best testing doesn’t just identify global site changes that drive profitability. If you’re really looking to make your website sign, you have to identify which customer segments resonate with which aspects of your website.
Each visitor to your site falls into an almost infinite number of different segment slices, so it’s usually most effective to parse out your traffic demographics into a few broad segments and then narrow in as you find value.
Since every segment interacts with your site differently, the best way to determine your site’s most profitable segments isn’t through focus groups or personas. Successful segmentation is site specific. To get the most out of a segmentation strategy, you have to test to identify the changes in your site that matter to your customers segments.
In order to ramp up your segmentation strategy efforts we use advanced analytics solutions. By sending your testing data to your analytics system we can identify cause and effect in your data. This is important because it allows us to identify how different traffic segments respond to different elements of your site.
Sending cause and effect data to your analytics allows us to slice and dice segmentation in many more ways than are typically feasible in most testing tools. This allows us to gather more insights at the test level and segment after the fact.
Segmenting your traffic using analytics allows you to rapidly understand what works for each sub-group of your audience. The faster you can optimize your segmentation strategy, the quicker you can start personalizing your customer site experience.
The holy grail of a testing and optimization program is personalizing your customer’s site experience in a profitable way. The pervading problem in the industry, though, is that most personalization techniques are guesswork based.
Most companies do a little research on their traffic segment and make some assumptions about how they will respond to different site elements. It’s probably better than nothing, but it’s a far cry from an effective personalization strategy.
To really access the power of profitable personalization, you need to discover what should be shown to which visitor segments where on the site.
If you want to give your visitors the best targeted content you have to first test the content and then test to see how the visitor segment responds to it. It requires a lot more strategy and discipline than taking a shot in the dark, but it’s also much more likely to give you the results you are looking for.