May 12, 2015 · track user activity segment your users increase ecommerce conversion user segmentation

5 Ways to Drive Conversions on Ecommerce Sites by Tracking User Activity & Segmenting Them

For most businesses personalization broadly means having a marketing automation system in place and triggering personalized mail at the right time. While there is no denying the fact that email marketing has turned the tables upside down for many, there is a still a vast scope to shorten the sales cycle drastically by studying user behaviour/activity on site, creating specific segments and targeting them appropriately. This not only drives more customers to conversions but also saves a you a great deal of marketing effort and money.

“According to Janrain nearly three - fourths (74%) of online consumers get frustrated with websites when content (e.g offers,ads, promotions) appears that has nothing to do with their interests.”

Connecto tracks specific user actions and attributes, collects real time data around user activity, buying behavior and interests and automatically generates rich user profiles. You can build dynamic segments on behavioral data and set up automatic personalized notifications to reach users at right time via different channels like web, mobile and email. This helps to distinguish between power users, new users, promoters, loyal users etc. and create personal experiences for each.

In this post, I have listed a few ecommerce specific segments that could be targeted appropriately to drive more conversions at minimal cost.

1. The Loyal Customers:

This segment consists of repeat customers who are frequent buyers and keep a hawk’s eye on new arrivals. Such loyal customers with high customer lifetime value can be surprised with personalized welcome offers. Studies have shown that about 80% of business revenue comes from about 20% of customers. Showing this segment personalized offers or discounts makes sure that they stick with you and your business keeps growing.

2. The Cart Abandoning Visitors:

According to Wikipedia the typical shopping cart abandonment rate for online retailers varies between 60% and 80%, with an average of 67.91%. Studies have shown that three-fourths of those who abandon the cart plan to visit the website to complete their purchase. By showing time bound exclusive discount to people who added some product in their cart but didn’t complete the purchase even after a week, businesses can generate huge revenue.

3. Visitors With Cart Value Exceeding A Particular Amount:

When the value of products added in shopping cart exceeds a particular amount, the user could be engaged with advice to save money and buy more. Also cross- selling and upselling should be done for this segment without fail. For e.g. If a user has added apparels worth Rs. 839 in his shopping cart, he could be shown the offer he would be eligible to if he spends a few more bucks - tell him that he would get flat 30% off on entire order if the order value exceeds Rs. 1000 or you can tell him that he would be eligible for “4 for 499” offer if his order value exceeds Rs. 850.

4. Repeat Visitors:

Personalization matters a lot. There are very high chances that any user landing on a stale, static website will leave without making any purchase. Website must communicate with the visitor, show him relevant content and guide him when he is stuck around. All repeat visitors should be welcomed with a short personalized message.

They should be assisted/ guided across a session for packaged offers to reduce drop off. Those repeat visitors who have not yet placed an order could also be shown exclusive offers for first time buyers while those who had made a purchase earlier could be suggested products and shown relevant offers based on their past purchase. This helps users to cut through clutter and pushes them further down the sales funnel.

5. The Couponers:

This segment refers to the users who have made purchase only when there is a sale going on or when they have a coupon to apply. They could be shown exclusive coupons and discounts to convert them to quick sales.

These are a few generic segments. You can track specific user activity, define your own specific segments depending on the rich behavioral data and reach out to users at right time to increase ROI.

Happy Converting!

  • LinkedIn
  • Tumblr
  • Reddit
  • Google+
  • Pinterest
  • Pocket