Choose target audiences that look like your best customers from the data your eCommerce stores collect.
If you do a Google search for a product, hundreds of options appear. However, the question is, which one would you go for? Customers are more likely to buy products from companies they have heard about. This general knowledge comes from advertisements and marketing campaigns.
While the concept seems easy, demand-generating campaigns require much work and thoughtfulness. The way you target your customers can determine your engagement and traffic scores. People prefer a personalized experience – where they are the center of attention. Therefore, targeting them appropriately is important, especially if you want to grow in today's competitive e-commerce industry. There is no point in advertising a service offered in the United States to Canada for a broad instance. Narrowly, it can be very costly to advertise to those that have opted out.
Customer Segmentation and Lookalike marketing
There are two approaches you can take: customer segmentation and lookalike marketing. Customer segmentation divides your client base into groups based on several factors, including geographic locations, age, gender, activity, and preferences. Lookalike marketing refers to using existing customer profiles and assuming that people with slightly matching attributes will respond similarly to your advertisements. With clear customer segments defined by your data, leveraging lookalike audiences becomes more scientific and cost-efficient.
Both techniques can play a major role in improving your performance and helping your business grow. Lookalike audience has been shown to have a higher click-through rate of 90% of the time than other audiences. This is indicative of higher traffic from targeted campaigns.
You can use the vast amount of data that your e-commerce website or application generates to look for patterns and divide customers into groups. Once you have your main customer groups, you can assign these categories to the remaining audience through lookalike marketing. This data-driven segmentation can help increase your profit margins by improving your engagement.
The more likely people are to click on your advertisements, the better the chances of making more sales. Deman gen experts will tell you that it is a numbers game. You can make several advertisement campaigns, each catering to one of your audience's segments. The clicks on these advertisements can lead to different landing pages designed specifically for certain people. If your customer finds the products in your demand generation techniques interesting, they tend to dive further into your e-commerce store and buy items.
Numerous big companies, especially those that moved stores online early, have employed these techniques to grow their customer base- even through these tough times. Compared to traditional marketing and demand generation strategies, the users appreciate a more personalized advertisement. Therefore, data-driven customer segmentation is an optimal option if you are an e-commerce store looking to increase your audience.
If you want to learn more about how VIEWN implements these strategies, talk to us. Our platform can do the heavy-lifting in execution for you. The company offers data-driven customer segmentation and insights to help you grow and drive effective engagement.